Transforming Financial Transactions
Does the Blockchain technology behind Bitcoin have the power to transform financial transactions?
Times of India reports that Bitcoins could transform the remittances business in the country and the digital currency could gain increasing acceptance in India, given its gold-like attributes, the chairman of the global Bitcoin Foundation told ET. The Bitcoin Foundation was started in 2012 to standardise, promote and protect the use of Bitcoins. The foundation lobbies, organises conferences and provides technical support for the digital currency. "I am really surprised bitcoin isn't more popular in India, given the strong gold culture here. I call it Gold 2.0. It has all the attributes other than the fact that it isn't tangible, and tangibility is less important in the digital age," Brock Pierce, chairman of the Bitcoin Foundation, said on the sidelines of the SingularityU India Summit held by INK Talks.
Pierce said the digital currency could be used in the remittances as the peer-to-peer transaction would not attract the high service fee that money transfer companies charge. "Service fees are sometimes up to 10% of the transaction. On small remittances from places like the Middle East it could be higher. That's a great use case for Bitcoin," said Pierce.
Bitcoins are a peer-to-peer digital payment currency. Instead of using a central authority to verify the digital transaction, bitcoin uses a process called Blockchain, which is effectively a distributed public ledger that tracks all transactions.