Payment processing and internet shopping have made huge strides in consumer convenience over the past decade. The majority of my purchases, like those of 263 million other Americans, are made online. It’s the quickest and easiest method to find exactly what I need without having to spend hours searching through shelves.
The online shopping experience works well in general, but there is a lot of room for improvement when it comes to the checkout process, where blockchain and digital asset payments may be integrated to benefit both customers and retailers.
The Dollar’s Digital Assets: The Foundation of Programmable Currency
The blockchain is a digital, distributed, and unchangeable ledger of transactions that uses smart contract technology to facilitate safe, automated transactions between buyers and sellers. Cryptocurrency is a digital asset and means of exchange that relies on cryptography for its safe transactions, and this technology makes that possible. Gucci, Off-White, and Balenciaga are just a few high-end labels that have tried accepting cryptocurrency as payment.
The danger of using digital assets like Bitcoin and Ethereum as payment is elevated, however, due to their price volatility. Cutting through the marketing fluff surrounding businesses’ embrace of cryptocurrency payments can be challenging. Stablecoins, which are pegged to the dollar, may be the missing ingredient in the payment revolution.
Dollar digital assets are the foundation for programmable money, making possible a future where value transmission is as seamless and decentralised as the internet. Trusted stablecoins are digital dollars that are backed one-to-one by fiat currency and may be exchanged directly for dollars at any time. Dollar digital assets are well suited to drive the revolution of digital asset payments, because to their combination of speed, cheap transaction costs, and constant availability, all without the price volatility that plagues other digital assets.
Stablecoins have the potential to replace fiat currency as the standard for all kinds of purchases in the near future. Nearly 75% of merchants questioned by Deloitte in June 2022 said they aim to accept digital asset payments within the next two years, and 83% say they anticipate rising consumer interest in digital assets over the next 12 months.
A Stablecoin Store
Both businesses and customers stand to profit greatly from this. Accepting stablecoins from clients reduces fees, cuts out the middleman, and brings in new customers who already have the cash in their digital wallet. When stablecoins are used to settle merchant payments, the payment flow is accelerated and transaction costs are reduced. Similar to email, transactions with dollar digital assets may take place 24/7, so that payouts and settlements will never be delayed by things like the weekend or a holiday.
Online buying will no longer be a hassle for customers since they will no longer have to get up and key in their credit or debit card number or endanger their privacy by saving the information. Payments made with digital assets are processed instantaneously when a user links their wallet to their web browser. By adding support for digital asset payments, online commerce may be seamlessly expanded. I love shopping online, but I’m not very good at it. What thrills me the most is the near-instant speed of transactions that will shorten the time it takes to process my returns.
While the crypto community as a whole has shown quick acceptance of stablecoins for use in decentralised finance and capital markets, widespread use of dollar digital assets for day-to-day transactions is still in its infancy. Clear legislation, more understanding of the benefits of utilising stablecoins for payments, and, most crucially, a more intuitive user experience are all necessary for widespread merchant adoption.
The process will be gradual, as is the case with any innovative technology. As time goes on, more and more e-commerce sites will offer digital wallets where users may pay using stablecoins, creating a seamless experience that will make us forget we’re even dealing with cryptocurrency and start thinking of it as just another kind of internet-native buying.
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