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Cryptos Issued by Banks – Can This Secure Payment Processors Gateways?

Cryptos Issued by Banks

June 27, 2020 | 

JOHN K MWANIKI |  0 Comments| 

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Crypto is the future of money. An acute increase in the number of payment processor gateways in recent times is a testimony. Very soon, things like Coinbase, Coingate, Bitpay, GoCoin, Coinpayment, among others, will become household names. 

Before then, they still face security and legitimacy challenges. From the trust and regulation that comes with government-backed currencies, it looks like cryptos issued by banks is the best solution. 

Read more to learn the payment processors' role and how the cryptos issued by banks is all they need for stability.

The Role of the Payment Processors Gateway in the Economy 

Even though the crypto payment process gateways have been on the rise, most people are yet to understand its role in the economy. The integration of the processors in different companies comes with several benefits, like liquidity.

It connects the retail sector to the supply chain allowing it additional payment methods. The faster a company can pay suppliers and for other services, the lesser liability it has to deal with. 

Efficiency is another reason why crypto processing gateway is essential. Even though there are other traditional payment processing methods, they come with several disjointed processes.

It takes longer to set up such systems and some more time to verify transactions. That is different from the crypto where the payment processing is instant and does not require any details for verification. 

Lastly, an efficient payment processing gateway helps reduce costs to most companies. Even though simple transactions like buying coffee are streamlined, large corporations still endure high payment costs and other inefficiencies.

The processors look to eliminate all the efficiencies by providing fast and affordable crypto payments. 

How crypto Issued by Banks can Secure Payment Processors Gateways

While the crypto payment processor gateways have such a crucial function on the economy, it has come short due to several challenges. However, with the governments looking to take up the crypto world, the processors are likely to become more secure. 

The first step towards securing the gateways is by ensuring legality. Even though the take up of cryptocurrencies has been on the rise, there is still a challenge in universal acceptance.

Some governments recognize it as an alternative payment method; others like India have no clear commitment yet. As much as the judiciary has made ways for streamlining the currency, the government is yet to take heed. 

Any government-backed coin is a legal tender in which individual traders and foreign countries are likely to accept it as they do the fiat currency. 

The other way the government-backed crypto looks to liberate the processors getaway is by reducing the cost of transactions. Even though the cost of transacting cryptos is quite low, the processors have to undergo several regulations.

The cost of the rules is passed to the consumers. Government-backed cryptos need fewer laws, thus reducing the costs involved. 

The volatility of the crypto has been an issue for some time now. The value of the coins keeps shifting depending on demand and other market forces like halving. Most outfits do not accept the cryptos due to undefined value.

This is different from the case of a government-backed coin that assures stability. The government controls the economy and determines the exact amount. 

The increased security in transactions is another reason why government-backed crypto is the way to go for the processors. Unlike the crypto where most people are still sceptical about its operations, government-backed currencies have legitimacy.

The trust people have in cash is the main reason why it is still king over the years. 

Once the traders trust the crypto government's crypto, they are likely to sign up in droves, with the payment processors getaway as the ultimate winners. 

The Current State of the Government Backed Cryptos 

With all the possible benefits, you might be wondering why the government is yet to deliver a crypto coin. Most of the governments have realized the potential impact of the coins. They are already pursuing the possibility of introducing them to the market. 

China is one of the leading world economies looking to roll out a national cryptocurrency soon. The European Central bank also has set up a team to look into the possibility of setting up a government-backed cryptocurrency.

The team is looking into the need for the need and how to roll out if at all, there is a need. 

Even though the crypto-backed by banks are not taking over from banks right soon, they harbour massive financial benefits. It is the future of money. 

Wrapping UP 

After some time of heavy private use, cryptocurrencies are moving mainstream. Several companies are adopting the currencies as a payment method, leading to the influx of payment processor gateways. 

Even though the processors have been successful, they face challenges of security, scalability, and high costs of transactions. Cryptos issued by banks are the ultimate solution for the problems. 
 

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