Some of the financial institutions that made their thoughts about digital currencies might just be beginning to swallow their words. This is as Bitcoin and other cryptocurrencies have fought against the odds and are becoming popular as a means of payment.
In China, for instance, the local currency is not used that much when compared to digital currencies. This has been the case as close to all of the sales payment have been done through the latter method.
The popularity of Bitcoin and other cryptocurrencies is driven by the fact that social media forums like WeChat and AliPay no longer make it necessary for payments to be made in the local currency. In fact, consumers have been denied services if they tried to pay with cash.
The Central Bank is among the most affected
The central bank in China which has a reputation against cryptocurrencies and blockchain is on the losing side. This has been made possible by mobile applications that have become quite popular and hence digital payments. This has led to the intensification of application of blockchain technology. This leads to the diminishing need to hold money in the traditional way in a number of processes.
The declining importance of cash is disturbing for the Central bank. This has prompted its campaigning for the reduction in digitisation of money. This is among its major worries when it comes to Bitcoin and other cryptocurrencies, as well as blockchain technology is concerned.