Trusting the blockchain system to secure money

Whether we admit it or not, there’s a growing distrust in financial and government institutions when it comes to online money transactions. Aside from exorbitant fees and a non-transparent system that makes you wonder where your hard-earned cash is actually flowing, there’s also the matter of qualifications. Most often than not, financial institutions would need stringent requirements and qualifications before people can procure a finance group’s services.

This is a sad state of things considering that there’s an expected exponential growth when it comes to online global payments. According to Raconteur, by 2020, this side of the financial industry could balloon to as much as US$2 trillion (AU$2.8 trillion) worldwide, basically covering about a third of all bank transactions. So why aren’t banks seem to be paying more attention?

The truth is private financial institutions like commercial banks might actually be paying more attention than what we think. In an interview earlier this year, HSBC digital chief Raman Bhatia said that all banks should expect a digital movement across borders, as more institutions are closing branches — not because they are losing money, but because they are now bringing services closer to customers via their digital gadgets.

“What we want is a very personalised experience for customers; much more real-time, future looking, based on their behaviours, and which has a predictive component to it — that is the Holy Grail in the next few years for anyone in retail banking,” Bhatia said in an article.

Aside from new banking services, market analysts also believe that people will be exploring more of other online options when it comes to how their money is being handled. As the bridge among individuals and global institutions narrow down thanks to going digital, experts think that transactions will also be taken to the “cloud.”

Blockchain: The new banking system?

One concept that’s seriously being considered and currently making a mark is the use of Blockchain, a distributed ledger technology (DLT) that basically “transforms” money into digital currency.

Unlike traditional banking and other online payment options like PayPal, blockchain technology works fast and is highly transparent, with almost 90 percent of banks from Europe, North America and Australia experimenting with its possibilities.

Blockchains are considered appealing to most companies, especially those who deal with international transactions. Money is transacted and pooled in without any governing regulations like transaction fees that basically bleed out people who use the service.

Transactions are fast and uncomplicated, so now more people are drawn towards its promises. For example, blockchain technologies are now being seen as a way to address the growing problems of refugees. Through a blockchain-controlled financial avenue, humanitarian efforts like financial grants can be distributed. Identification is hard to do during a refugee crisis, especially for people who had to leave their homes because of war.

Via blockchain, refugees can simply use applications that are built on the “chain” and individuals can then use this blockchain record to establish their identity and records which could be used so they can start their lives in another nation.

Finland’s Finnish Immigration Service is another example. The group offers refugees with prepaid Mastercard that was digitally funded and developed by startup MONI. MONI then gets to create that person’s record by keeping track of digital transactions that are saved or recorded on the blockchain.

Another example is what’s happening in Moldova. Here, the government has begun working with digital identification experts from the United Nations Office for Project Services so they could come up with ways on how to utilise blockchain and provide children who are living in rural areas, with their own digital identity. This step is expected to stop human traffickers from smuggling minors across borders.

Developing a platform

There are more, exciting options on financial transactions that make use of blockchain technology. Clic Technology (OTCMKTS:CLCI), for example, sets out to help businesses use blockchain, particularly cryptocurrency funds so they can easily encash funds to dollars.

There are currently US$200 billion-worth (AU$280 billion) of crypto funds that be accessed and used to a company’s advantage. This can be done through Clic’s easy and efficient system that could make cryptocurrency payments easy, produce crypto wallet, engage in crypto-mining and other cryptocurrency endeavours.

Clic is a fintech company wherein all products are conceptualised and produced in-house by highly-qualified developers. And considering the company is PCI-DSS Level 1-certified, client data is safe and guarded by the highest level of security when it comes to payments.

CLCI is a leader in blockchain technology and it is one of the first publicly-traded companies that offered blockchain solutions and products in preparation for the future of global e-commerce. Its product works simply: The group offers innovative blockchain solutions that allow merchants to accept bitcoins and altcoins as if they were using dollars or yens. Users can make payments using cryptocurrencies without going through a bank and with fewer fees and expenses.

The company’s proprietary technology allows buyers to spend their bitcoins and altcoins safely and without any complications. Some of their products include iSwipe, which basically works like an ATM card and allows users to convert Bitcoins and Altcoins into cool hard cash anytime they need it.

iSwipe is basically a complete cryptocurrency payment platform that takes the hassle out of accepting bitcoins and altcoins as a form of payment with automated settlements in user’s local currency. Customers can literally pay in cryptocurrency, yet merchants receive payments automatically in the local denomination.

In addition, the process is easy to set up and use. Creating a merchant account is not just fast, people can also do it free, requiring only an email and a password to start transactions.

And not just that, quick integration is already provided with convenient payment buttons, checkout pages, email invoicing, embeddable forms and API for custom integration. Companies like CLCI perfectly showcase that DLT solutions can be more efficient, accurate and trustworthy, as long as they have the right system working and the product is up to date.

IBTimes Australia does not endorse any product or practice stated here. The article is based on press releases sent for consideration.