Traditional banking has seen challenges to its autonomy over the world’s finances with the increased adoption of cryptocurrencies over the past few years.
Cryptocurrencies were developed to exist on a decentralized, peer-to-peer system, empowering its users to complete payments without a middleman. It’s this lack of central authority that has caused conflicts between governments and crypto, but why?
When we talk about fiat currencies, we’re talking about the currencies issued by the government, such as the Euro, Dollar, or Yen. These currencies get their value from the governments that issue them, declaring it as legal tender. Which means that technically fiat currencies are not backed by tangible assets but from the credit of governments and central banks. This allows these entities full control over funds, giving them the authority to freeze accounts, or transactions, at their discretion.
In particular, the adult industry has fallen victim to this influence. The classification of ‘high-risk’ for these businesses has subjected them to higher payment fees or even having payment services denied entirely.
Cryptocurrencies are becoming ever more popular mainly due to the financial freedom they offer their users. The key is that it doesn’t rely on the typical fiat financial system and instead utilizes blockchain technology for its services.
This decentralized platform puts the control back in the hands of the consumer, allowing transactions to take place without an intermediary central bank or government approval. For businesses, this can mean easily accepting payments without fear of not being able to access funds, significantly reduced transaction fees, and full security and privacy.
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