If You Don't Own a Wallet, Start to Consider Ditching Your Bank Account Too

How we pay for goods and services has evolved rather slowly throughout history. From the barter system, to coins, to paper money, to cards then mobile payments. Existing now are cryptocurrencies, and they are here to provide yet another evolution, one that's going to leave the biggest impact. This is due to the largest trend in every industry: going digital. Carrying paper bills in your wallet, and coins more so, was made unnecessary in most cases with the advent of credit/debit cards. Then with mobile payments like Apple Pay, people have chosen to ditch the pocket wallet altogether. Even gift cards can be transferred to a mobile wallet. The "everything digital" trend, with help from cryptocurrencies and blockchain tech, people may just choose to ditch their banks as well.

Saying goodbye to paper money?

At the center of this digital age are the millennials, and according to a recent survey it's a close 50-50 as to whether or not there's an interest by this generation to convert away from the U.S. dollar and into a cryptocurrency. I suspect more people would be willing to use a cryptocurrency over the USD once they're more educated on this new technology and its benefits. Also, when retailers, restaurants, etc. begin accepting cryptocurrency, there will certainly be a large portion of millennials ready to add a crypto wallet to their device to use as a mobile payment option. This generation, and even people outside of it, are arguably the most willing individuals to try new things and follow trends. They'll dive right in when they find out how quick, secure, and cheap it is to use cryptocurrency (these traits are continually being enhanced). The mass adoption of payment and money transfer apps like PayPal, Square, Venmo, and the multiple mobile wallet services, goes to show how successful cryptocurrency will be.

Saying goodbye to traditional bank accounts?

While the trend of using the physical dollar continues to decrease, and cryptocurrency adoption increases, the next step would be to ditch the bank account. Your crypto assets are more securely stored on crypto wallets than fiat currencies are in a bank. Hardware wallets, like Nano Ledger S, and paper wallets can act as your savings account that you won't often make withdraws from. For quick withdraw access to pay (if available at retailers) and transfer, software wallets like Jaxx, Coinbase, and Abra can store, send, and receive crypto. When a location accepts cryptocurrency, it will be as easy as scanning the retailer's public key QR code and your crypto will be sent.

Goodbye to high swipe fees

There will undoubtedly be a shift in pubic and retailer opinion regarding cryptocurrencies. Kroger, the leading U.S. supermarket chain, is banning the use of Visa cards at certain locations and plans on expanding the ban because of the high fees associated with the credit company. From USA Today article:

"Merchants like Kroger simply think that these swipe fees – which can range between 1 percent and 3 percent – are too high...(It is) basically a power move to try and force Visa to knock those fees down...the battle over swipe fees has been brewing for some time and this move by Kroger shows that it is about to escalate....retailers pay an estimated $90 billion in swipe fees annually, according to Bloomberg, and Kroger is concerned that Visa's rates and fees are among the highest charged. Kroger's move follows Walmart's decision last week to end its card agreement with Synchrony Financial after failing to come to an agreement over terms".

The fees are outrageous and more retailers will certainly follow suite as they learn the amount of money they could save if cryptocurrencies are welcomed as payments.

Cryptocurrency payment as an option, not a replacement

The USD will continue its dominance. Bitcoin or another cryptocurrency won't dethrone the dollar anytime soon. However, crypto is a better alternative in many cases. Knowing the value cryptocurrency adds in certain industries, and everyday life, is vital in getting it to mainstream adoption. Just like how mobile payment apps replaced the need for a physical wallet, blockchain technology and cryptocurrency could replace the need for the USD and banks. Its an unlikely scenario in the financial legacy system we live in today. Although, cryptocurrency payments and blockchain tech existing as alternative options to credit cards and banks is highly probable, and much needed.