How Fintech will Save Cryptocurrency
Tags: fintech, trends, cryptocurrency
Published: 2022-09-20 08:53:09


Cryptocurrency was first used to buy a tangible product twelve years ago. Reflective of crypto’s relatively humble beginnings, on May 22nd 2010 ten thousand Bitcoin were used to buy two large pizzas. Since then, we have seen both an astronomical rise and catastrophic crash in the value and ubiquity of cryptocurrency in both private and public marketplaces.

The COVID-19 pandemic prompted a shift towards digitalized spending and, as such, provoked an interest in online currency from previously uninterested investors. Around the time the Omicron variant began to wreak havoc across the globe, cryptocurrency crashed almost overnight with currencies dropping to a quarter of their value. 

Whilst finance is all about risk and reward, such fluctuations fed into speculation that crypto was merely a fad, with no real lasting consequences on the global economy. However, this is perhaps too short-sighted a view given the parallel expansion of the Fintech industry. 

Fintech encompasses innovation and development of financial services beyond traditional models. Think AI, blockchains, cloud computing and big data. Utilising Fintech could provide opportunities to stabilise and expand cryptocurrency such that it becomes integrated within the global finance sector alongside other mainstream currencies.


![Ramp Instant cryptocurrency app](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/fukjisfxu3764a9d7tpc.png)

_Image: Ramp Instant [by Mateusz Piatek](https://dribbble.com/shots/11116733-Ramp-Instant) for Properly_

Ultimately, cryptocurrency’s appeal hinges on the ease, efficiency and speed with which transactions can be made. Transferring money from one bank to another through traditional methods is subject to a great deal of red tape, processing, and logistical bureaucracy: all of which introduce delays and increase workloads. Because they are decentralized, cryptocurrencies are subjected to no such regulation and can therefore move much faster. 

As we progress towards a more globalized society and subsequently economy, the notion of a currency that transcends borders and can be used transferable across countries is ever-more appealing, particularly for business and trade. 

The average consumer is well practiced in using online banking and cashless payments to an extent, but the use of crypto in day-to-day transactions is a largely unrealised market. As such, Fintech start-ups focussing on normalising cryptocurrency for domestic purchasing alongside traditional payment methods have a unique position through which to normalise digital currency.

In regions with volatile currencies, crypto might offer a degree of stability that a nation’s main currency cannot. This scenario played out in Venezuela when the Bolivar collapsed: both businesses and the general population were drawn to crypto as a more reliable trading option amongst the chaos unfolding through the regulated banking network. 

Crypto’s decentralisation is often cited as its most risk-inducing feature by governments keen to quash its expansion. However, as blockchain technology is so notoriously challenging to hack and manipulate, the lack of market regulation does not equate to a lack of safety. In fact, Fintech advancements in AI can lessen the need for human intervention (and therefore human error) in transactions.

![How decentralized finance work](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/uzelwcyhtpovvaf8gvec.jpeg)

_Image source: uptech.team_

The Fintech sector is a rapidly expanding area of business. From data engineering to the development of the metaverse, thousands of jobs and business ventures can and will arise out of its development. As for cryptocurrency, despite a shaky start on the global financial scene, it would be foolish to assume the economy is heading anywhere other than digital. 

When combined, Fintech and cryptocurrency pose an exciting threat to the current running of financial services. We are on the brink of innovation within the online spending and trading sphere, and Fintech might be just the lifeline to save cryptocurrency and revolutionise the landscape of financial transactions. Just wait.