Ever since Bitcoin was created in 2009, cryptocurrencies have seen a surge in popularity and are today collectively worth more than $3 trillion. The crypto landscape is actively described as the most important invention in history since the Internet, with the mention that crypto is neither virtuous nor nefarious but a blueprint of the ongoing, rapidly intensifying digital transformation. Arguably, the right way of determining crypto’s impact on our day-to-day lives would be to mention the particular activities where cryptocurrencies are used every day. Those include online and in-store purchases, remittances, travel, gaming, gambling, donations and charities, and peer-to-peer transactions.
Bitcoin, on the other hand, is way more accessible than other cryptocurrencies, gaining tremendous support from more exchanges and merchants as it addresses inflation, one of the most significant problems in modern economics. Although Btc price prediction history has shown remarkable volatility, its limited supply makes it immune to usual inflationary pressures that threaten fiat currencies, demonstrating resilience during numerous times of economic uncertainty.
Overall, there are plenty of discussions regarding the potential of cryptocurrency payments to become mainstream in the financial service industry and shape the future of a cashless society. Thus, we’ve thought to analyze the hyperbolic impact cryptocurrencies have already had on our world, highlighting why so many organizations have embraced this change and what makes them so eager to approach living in a “fiat-less” world as a better reality.
What Countries Already Accept Cryptocurrency As a Legal Payment Method?
The use and acceptance of cryptocurrencies are actively growing worldwide, with two countries already approaching Bitcoin as a genuine legal tender. The first country to adopt Bitcoin as an official currency was El Salvador, which integrated it into its financial system in June 2021.
A year after the president of El Salvador drove his citizens towards innovation, the Central African Republic followed in its example, adopting Bitcoin as a legal tender in the second quarter of 2022. Additionally, countries such as Germany, Switzerland, Portugal, Japan, Malta, United Arab Emirates (Dubai), Slovenia, and Estonia broadly accept crypto payments, with the mention that it is still not a “must” to do that but rather the personal decisions of specific business, real estate firms, stores, and cafes.
In the United States, Canada, the United Kingdom, Australia, and the European Union, crypto is also legal but limited and discouraged when it comes to payments. However, many countries are actively working to make cryptocurrencies more accessible, aiming to allow them to become a part of the financial system. As for the countries where crypto remains banned in 2025, they include China, Egypt, Algeria, Bangladesh, Nepal, Afghanistan, Morocco, Bolivia, Iraq, and Russia.
What Makes eCommerce Businesses Embrace Crypto As A Payment Method?
As online retail is a fiercely competitive space, numerous eCommerce businesses have revolutionized their practices by incorporating cryptocurrencies into their payment methods. This particular rise of digital currency in online purchases offers advantages that traditional systems cannot match, with speed and lower transaction fees being the most significant benefits of them all. While traditional credit card transactions can take several days to process and include fees that range from 2% to 4%, crypto payments settle within minutes and generally charge less than 1%. These benefits improve cash flow and lead to substantial savings, especially for businesses that process thousands of transactions a month.
Furthermore, blockchain transactions eliminate the risks of chargeback fraud, contributing to the security and fraud prevention of eCommerce businesses that are adopting crypto payments. Overall, the acceptance of crypto as a payment method empowers online retailers to open doors to a global customer base, enabling them to reach numerous individuals who were previously excluded from international commerce.
What Would It Be Like To Live In A Cashless Society?
Globalization has caused and is continually causing, an almost general phenomenon where countries are moving towards digital payments and decreasing physical cash. The vast number of enthusiasts who are actively advocating for a cashless society associate this shift with countless benefits, including enhanced security, reduced business taxes and system failures, and enhanced financial inclusion. This change, however, requires a plethora of improvements at all levels before it can be fully acknowledged as a future for all societal groups. As numerous populations still lack access to digital technologies and a significantly equal number of countries have already begun the movement to a cashless society, the digital economy is highlighted as a move that requires careful planning, adaptive strategies, and robust infrastructure.
To further understand how a cashless society would actually look, we can take Sweden as an example, considering it is typically cited as the world’s most cashless society. In 2020, Sweden saw less than 1% cash payments, spreading confidence in online banking, mobile payment apps, and laws supporting electronic payments.
While Sweden is still facing some challenges, its transition to becoming a cashless society has brought several notable benefits, such as lower robbery rates, reduced money laundering, lower costs, greater convenience, and financial transparency.
What Would Be The Position Of Bitcoin In A Cashless Society?
Assuming society overcomes all things obstructing the movement toward a cashless society, we have two different scenarios for getting there. One would be living in a fiat-less world where centralized organizations still dominate. Under these circumstances, cryptocurrencies do not really play a significant role. However, supposing our society will value privacy over national safety and will aim for a cashless and decentralized system where central banks and Wall Street are no longer in charge of the power of money creation and control, then yes, cryptocurrencies can play an impressive role. As Bitcoin was the pioneer of digital currency and was the first groundbreaking advancement since the Internet, its position in a cashless world would be arguably notable.
