Virtual currency has been a debated concept within the technology community in the past few years, as transactions through this medium do not require any third party’s involvement. The concept has generated mixed reactions from investors, regulators, traders and online exchanges.
The potential for virtual currency is immense in this age of technological innovation, and businesses worldwide are assessing the pros and cons of adopting it.
This document discusses the current and potential impact of virtual currency on sectors such as banking, payments, e-commerce and insurance. It assesses how various countries are prepared to adopt the medium and how it would impact the way businesses carry out transactions in the future.
Although there are several types of virtual currencies, for the purpose of this study, we have focused only on convertible virtual currency (i.e., currency that can be converted into fiat money).
The document highlights how virtual currency would play a role in disrupting the conventional payment and transaction models. Additionally, it focuses on how certain industries, such as e-commerce, have largely accepted virtual currency, while traditional sectors, such as banking and insurance, are cautious and still evaluating the associated risks and potential benefits before adopting it on a much wider scale.
This document further highlights the trends in the adoption of virtual currency in the past few years, from the perspective of companies, regulators, investors and others. Moreover, it showcases countries (for example, the UK and the US) that have shown interest in adopting virtual currency and those (for example, China and India) that are reluctant to adopt it.
We also discuss the various challenges associated with virtual currency. Based on research, currency volatility and the absence of an authorized regulatory structure are the biggest challenges faced by businesses in adopting virtual currency.