Blockchain based transfers benefit both private users and businesses. For the former, it makesit possible to transfer small amounts at a low cost. For the latter, they can rely on blockchainto execute substantial wire transfers to clients or partners in a fast, reliable manner that isalso highly cost effective.
But there’s a problem. At present, cryptocurrencies function fairly well as an asset, but remainvirtually impossible to use as a means of payment in everyday life: users have to manually selltheir crypto assets on an exchange, then transfer the resulting amount in traditional currencyto their bank account. Only when this transfer is completed can they use these funds to makepurchases.TOKIA – bridging the gapCan traditional financial players provide the fast, efficient, affordable financial servicesbusinesses and individuals need? The answer is no. They can simplify their front endoperations, but the machinery behind it still causes problems because of the way it isstructured. For example, someone making an international transfer is still charged even if thetransaction isn’t cleared.
To make matters worse, it will probably take a long time for them tobecome aware that the transaction has been declined, an additional headache for bothbusinesses and individuals.Let’s be clear. Traditional banking has been with us for thousands of years, and has done adecent job of stimulating economic growth. But now it is lagging behind. Emergingtechnologies are already there and ready to be adopted, but by failing to do so thesecompanies are both depriving their customers of the gains these new technologies bring andmaking themselves vulnerable to competition from new entrants.
And these new players don’tdepend on a long chain of intermediaries to offer their products to the market.Blockchain might just be the technology that will change how we perceive