While cryptocurrency has been around for more than a decade now, the vast majority of us are still a bit unsure about how it’s used now – and how it can be used in the future.
In fact, most of the things we hear about cryptocurrency revolve around the money other people are making from it, rather than what it actually does. So what’s the deal?
Ray Brown from CoinSpot, Australia’s most trusted cryptocurrency exchange, says the possibilities are ‘endless’.
“As every day goes by, it seems more creative minds and businesses are looking into utilising crypto in some way or another,” says Brown.
“You have big names like Elon Musk, his company Tesla, and other big businesses using crypto, and just being open in general to how it can improve their industry.
“There are so many different projects and so many different applications. It’s really made me realise that the sky is truly the limit for how these cryptocurrencies could be used.
“You’ve got PayPal, Visa, MasterCard trying to use it for payments. You’ve got other companies focusing on personal identity. Even governments are looking at it from a voting perspective to try to ensure transparency.”
WATCH: Ray Brown and David Koch discuss the future of crypto
Powering cross-border payments
One of the increasingly common uses for cryptocurrency is cross-border payments.
“As you may know, if you’ve ever sent money overseas to friends or family, it’s often very time consuming and expensive,” says Brown. “Banks are looking into various crypto projects that can improve that entire process by removing the high fees and getting payments across the world in seconds for just a few cents.”
That banks are exploring how to use cryptocurrency will come as no surprise, given that, for the past four years, the ASX has been working on launching a blockchain solution to replace its CHESS platform. It describes the blockchain solution as ‘a foundation for innovation that can reduce friction, latency, risk and cost’. While it was due to launch in April this year, it’s been pushed to April 2023 due to the pandemic and industry concerns.
Supply chain and logistics
Supply chain and logistics is another area Brown believes blockchain can have a significant impact upon.
“Obviously that’s a global industry – people transporting and manufacturing, and then the data management and how that’s all tracked,” Brown explains.
“When it’s done through the blockchain, it makes things very transparent. It makes things very efficient, so the people that are following it can make sure everything’s staying in line and keeping safe.”
Increasing regulation of crypto
Of course, something that gives confidence to the uptake of blockchain technology and the use of cryptocurrency in general is increased regulation.
Previously, from the outside looking in, it may have appeared something resembling a digital Wild West, but today the authorities are paying much closer attention.
“Twelve years ago, there was little to no regulation, whereas right now it’s on the agenda of governments,” says Brown.
“Cryptocurrency companies in Australia have to abide by these regulations as other financial institutions do, so it’s becoming more accepted.”
So it seems cryptocurrencies and blockchain technology can be used in a whole host of ways that aren’t necessarily apparent – and it’s certainly one to keep at least a watching brief on.
This content is brought to you by Your Money and Your Life in partnership with CoinSpot.
The information above is intended to be general in nature and is not personal financial product advice. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. You should seek independent financial advice prior to making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold). Pinstripe Media and CoinSpot are not liable for any loss incurred by use of or reliance on the information.