Future of payments stable coins, cryptocurrencies, or bank digital currencies

crypto wallets are important

After Covid-19 has stuck the whole world, people are using more and more contactless payments and digital payments. The alternative payments modes like contactless card payments, online transactions, and cryptocurrency as well. More and more businesses and consumers are also showing interest in making payments in digital mode only. So, people are confused about what is going to be the future of payments, bank digital currencies, cryptocurrencies, or stable coins?

This is surely a tough question to answer and even the experts in the financial market will not be able to predict it accurately. Before we get to decide what is going to be the future of payments, let us have a look at what each of them is…


Cryptocurrency is currently one of the most popular words that you get to hear or read on the internet. Cryptocurrency is a decentralized digital currency that is stored online. There will not be any third party for making any kind of transactions with cryptocurrency. You can hold, transfer, exchange, buy or sell your digital currency as per your wish. But the most common problem that you face with cryptocurrency is the value of cryptocurrency keeps changing. It is always volatile and never stable. It may become stable with time and when more and more people start trusting it and investing in it. They are rarely accepted by the service providers and merchants in the form of payments. 

Stable coin:

When it comes to stable coins, their value is tied with the other assets like gold and the US dollar. This is also a kind of cryptocurrency, but as they are tied to other assets, their value will remain stable. There are numerous benefits that you will be able to enjoy with cryptocurrencies, but there are also drawbacks to them. Their main drawback is, you can never predict the value of cryptocurrency as they always keep fluctuating. For this one reason, you will not be able to use cryptocurrency every day. But that will not be the case with stable coins. They handle these fluctuations in the price by connecting to the fiat currency. The value of Gold and the US dollar also keeps fluctuating, but they are not as unstable as cryptocurrencies. Hence, stable coins are a bit stable compared to cryptocurrencies. The most popular stable coins include Tether, Diem, Dia, USD coin, and a few others. 

Bank digital currency:

Bank digital currency is the normal currency that you access from your bank accounts in digital form. In simple words, bank digital currency is the transactions that you make online from your phones or internet banking credentials. The units of your bank’s digital currency are fiat currency only. It is valid for any kind of transaction and anywhere across the world. You just need to convert them to the currency of the country where you wish to use them. Central bank issues this. So, with bank digital currency you will not have any worry about the value of your currency as it is stable. 

What is the future currency?

There are so many benefits that you will be able to enjoy with digital currency like stable coins or cryptocurrency, but there are risks too. There is a lot of future for digital currency only but when we start depending completely on it, there can be some issues. Only the rich people will be able to take all the initial benefits of digital currency as the poor will not have so many options to use digital currency. If the fiat currency is completely swept off then it can be difficult to manage with such fluctuating digital currencies. But as things get stable, it can be one of the best forms of currency. There will be more secure and your assets will be stored safely. Depending on the wallets that you choose and the exchanges that you pick, you can add more security to your assets and make sure that your investments are safe. This is the very reason why crypto wallets are important. Whatever is the future of the financial world, the digital currency will surely be part of it. Even if fiat currency exists, digital currency is going to be the future.