Technology And Money: How The World Of Finance Has Changed

—TechRound does not recommend or endorse any financial, investment, crypto or other advice or practices. All articles are purely informational—

It is hard to predict ten years in advance, and in today’s reality, it seems impossible. Just like during the 70s when some predicted that gold would depreciate during the age of fiat money or during the 2000s when internet fans proclaimed that working remotely would make offices obsolete. Yet, we all want to be at least a bit ready for the coming challenges and transformations.

If one learned anything in the 2010s, one could not be guided by the previous decade’s trends when analysing the future prospects for the following decade. 

The End of Fiat Money?

We have been operating a fiat money system for decades, the value of which rests on faith in the capacity of states and central banks to underwrite the value of the money they create and shield it from devaluation in the case of inflation.

The relatively fast expansion of China’s presence in the world economy has been among the most significant brakes on world inflation during the last forty years. The present monetary system is based more on international forces and processes than state structure regulation.

The forces behind the existing world monetary system seem weak and may collapse. Record debt run up by countries across the globe is eroding faith in the system. In such a situation, demand for alternative money; gold or cryptocurrency may reach new heights.

Is Cryptocurrency The Currency of The 21st Century?

When Bitcoin’s price surpassed $20,000 and Facebook, with over one billion users, announced the introduction of a cryptocurrency payment system, global attention was sharply focused on the development. Subsequently, the COVID-19 pandemic further accelerated the adoption of digital currencies, propelling them significantly into the mainstream.

This type of system has always been considered complementary but has never been a substitute for traditional payment forms. Nowadays, the most important barriers to virtual money are government regulators, lack of global coverage of the payments market and reluctance on the part of a significant part of the population, both consumers and merchants to switch to the widespread use of cryptocurrencies.

To resolve these issues, dozens of other obstacles need to be sorted out, starting from cryptocurrency market stability to creating a secure and comfortable system on a global scale. But the pace at which the world is advancing toward digitisation is unbelievable, so we cannot rule out such a chance. And, incidentally, Lithuania has introduced the world’s first central bank digital currency, which China, the US, the UK, and others are actively pursuing.

The path to earning on cryptocurrencies becomes more uncomplicated and more straightforward. Molecula, a yield generation platform, facilitates entrance into the crypto market. You only need USDT tokens, and the platform will do everything else instead of you. It distributes idle stablecoins to promising DeFi platforms and RWAs, earning interest. As a result, you can have a passive income almost with no effort invested.

The End of Plastic Cards?

The last 10 years have seen much debate on the possibility of the paper money age coming to an end. Yes, the cashless change is indeed increasing, and the COVID-19 pandemic was another booster. However, a complete refusal of cash in 2030 is not very probable. 

Cash is still standard in most industrialised countries, including Japan, Western Europe, and the USA. One out of three people in developed countries still prefers to pay in cash, and more than half believe that cash will never disappear. In fact, in Germany, almost 60% of store payments are made in cash.

Contactless payments are already becoming increasingly popular. There is a prediction that this tendency will be sustained in the coming five years for various reasons.

For starters, of course, there are ease, reliability, and timeliness of payment. Secondly, there is no need to insert a PIN code or to provide cash. Physical contact is a complete psychological obstacle these days. Moreover, states and developed firms supply the necessary infrastructure for digitisation and create a single ecosystem. China is an example where WeChat Pay is on the verge of being dominant today.

In short, technology has transformed the financial landscape at its essence, creating historic opportunities for innovation and efficiency. From digital money and cryptocurrencies to artificial intelligence-based investment concepts and blockchain technology, financial products are increasingly becoming available, secure, and tailored to customers than ever before.

The future of finance promises even more change, driven by ongoing advances in technology, that will further reshape the way we invest, manage and cope with money.

—TechRound does not recommend or endorse any financial, investment, crypto or other advice or practices. All articles are purely informational—