How Cryptocurrency could Benefit Retail Sector

Asia Blockchain Review
January 7, 2020

Secure and low-cost transactions are among the many benefits of cryptocurrencies for retailers. With the use of blockchain and cryptocurrencies, retailers no longer have to pay a third party to validate the exchange of data or money, reducing transaction fees while avoiding fraud. 

However, there is still the risk of loss or theft due to the lack of regulations as well as the anonymity of transactions.

Which Retailers Prefer Cryptocurrencies?

Retailers of high-value goods such as jewellery and electronics prefer cryptocurrencies as a payment method, as their customers prefer to stay outside the centralized banking system.

Another group of retailers that actively uses cryptocurrencies is web-based retailers or retailers with both offline and online sales channels. These retailers mostly prefer crypto-based transactions, which are more convenient for customers to pay for goods online.

Retailers that deal with foreign currencies from foreign buyers also prefer cryptocurrencies, as there is almost no risk of currency devaluation.

Challenges in Crypto Use

The lack of any systemic safeguards available for traditional payment methods is one of the obstacles in the large-scale adoption of cryptocurrencies by retailers. The entire digital money can be lost, in the event that the network is hacked, since there are no government regulations and it is often impossible to trace hacking.

As for crypto wallets, anyone with the private key of the wallet holder can access the account, which can be exposed to threats such as hacking, phishing attacks, social engineering, as well as insider fraud. 

Cryptojacking is another threat, in which a hacker hijacks a target’s processing power to mine cryptocurrency on the hacker’s behalf.

Source: www.cryptonewsz.com


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