Cryptocurrencies Has the Capability to Rattle PayPal
According to Eiland Glover, Co-founder, and CEO of Kowala, digital currencies have can possibly disrupt Paypal as new US fees emerge.
The month of May became the most celebrated for the crypto community after Paypal’s decision to introduce a flat fee of USD 4.99 on most cross-border transactions. The announcement was made as a landmark for the future of digital currencies. The sudden price hike from the most prominent centralized payment platform has given an opportunity to crypto supporters for exposing the traditional remittance infrastructure. Crypto enthusiasts believe that in no time bitcoin transfers will be taking the place of PayPal and its kinds.
Currently, the average bitcoin transaction fee is roughly a fifth of the cost of PayPal’s new fee at USD 1.06. The CEO of Kowala informed that being cheaper than PayPal, bitcoin also serves the advantage of being universal as “the price you pay in Transylvania is exactly the same as the price you pay in Pennsylvania.”
He further writes that bitcoin is not the only cyber coin that can provide immense cost savings. There are numerous altcoins that are charging lesser then bitcoin itself. For example, litecoin informed that it charged only forty cents for a transaction on its network worth USD 99 million.
He believes that digital currencies are capable of creating a more human-friendly environment above of charging less for transactions. Most of the blockchain teams have not been able to employ professional and world-class marketing techniques.
The most important factor that has to be tackled in order to make digital currencies more acceptable is its volatility. A virtual currency comes up with a risk of huge overnight losses that has kept most of the people away from the technology. He also informed that many firms are working to tackle this issue and marketplace already has more stable coins like Dai, USDT, and TrueUSD.
Glover addressed the need for a faster blockchain to assist the new generation of crypto users. He advised that system should move from proof-of-work consensus algorithms, bitcoin and ethreum, to a proof-of-stake algorithm based on Byzantine Fault Tolerance. For example, the creation of the Tendermint project.
He then wrote about his company’s new venture kUSD, a stable coin, which has derived its consensus protocol from Tendermint. It blockchain has the capability to cater thousands of transactions per block with one second block times.
Finally, Paypal has become the most prominent payment company due to the streamlined experience its products offer. They provide a fast, clean and accessible user interface with a fully mature space that holds thousands of linked banks and merchants.
He said that crypto payments system should support an equal or better user interface to pose any serious challenge to PayPal’s domination.
Glover concluded that the system would require professional and experienced marketing team which could handle users and their grievances while providing the right knowledge and hardware to users for smooth functioning.
Although all these objectives seem burdensome yet they have to be completed to push digital currencies within the reach of everyday individuals.