Cryptocurrencies could soon replace cash for international travelers – as one expert predicts Bitcoin will reach a record value this year.
Thailand, Singapore, the Philippines, Malaysia and Indonesia have been testing a system since 2022 that allows cross-border payments to be made within seconds.
Project Nexus, a concept being refined by the Bank of International Settlements with several Asian countries, means international travelers can scan a QR code and choose which currency they want to pay in for things like a meal or a cup of coffee.
Caroline Bowler, CEO of BTC Markets, said this platform could one day be expanded to allow international travelers to pay for goods via Bitcoin or Ethereum, eliminating the need to go to an exchange office every time they visit another country or having to pay high fees at a foreign ATM.
“If it’s possible for those countries to do it, it’s very possible for Australia to do it,” she told Daily Mail Australia.
Cryptocurrencies are being touted as a great investment that could soon also replace cash for international travelers (pictured is a stock photo)
Thailand, Singapore, the Philippines, Malaysia and Indonesia have been developing a system since 2022 that allows cross-border payments to be made in seconds (pictured are travelers in Phuket)
‘The work has already been done, proof-of-concepts have been proven, we can now join the rest of our neighbors.
“It depends on the different setup, but you can choose whether you want to pay in Bitcoin or Ethereum, you can choose the crypto you want to use and you’re good to go.
‘It’s that simple.’
In Thailand and other parts of Southeast Asia, consumers are increasingly using QR codes to pay abroad or even for everyday transactions.
“What they use it for is high-frequency, low-value payments – buying your coffee or taking a taxi, they do it all through QR payments,” Ms Bowler said.
Those who do not want to use a QR code can also have the option of a tap-and-go payment card linked to cryptocurrency.
“You look at the cards in your wallet and you say, ‘Okay, I want to pay into my crypto account today,’ so you take out your crypto-linked card, then you tap and leave,” she said.
‘You can choose whether you want to pay in Bitcoin or Ethereum.
‘The successes of Bitcoin and other cryptocurrencies have to do with the speed with which you can carry out a transaction. If you want to send money abroad, that is particularly effective.’
Bitcoin Predictions
Bitcoin, the world’s most valuable cryptocurrency, hit an all-time high of $108,000 earlier this month but has since fallen back to $97,000.
But approximately every four years, the number of new Bitcoins issued is halved, with 19,687,500 issued before the April halving.
Bitget CEO Gracy Chen said a lower supply of new Bitcoins would reduce the chance of the cryptocurrency falling in value, although it remains a volatile asset.
“Ahead of Bitcoin’s halving in 2024, investing in Bitcoin still holds great promise,” she told Daily Mail Australia.
“Looking back at previous post-halving gains, alongside a reduction in new Bitcoin supply and escalating institutional interest, a bullish future seems a reasonable forecast for this halving. ‘
Caroline Bowler, CEO of BTC Markets, said this platform could one day be expanded to allow international travelers to pay for goods via Bitcoin or Ethereum
The innovation would save travelers from having to visit an exchange office every time they arrive in a new country
Ms. Chen predicts Bitcoin will reach $110,000 by 2024, putting it marginally above this month’s record high.
“At current prices, taking into account rising institutional demand, easier retail access and reduced selling pressure from miners, it is possible that Bitcoin could even exceed current price forecasts,” she said.
“The potential for high returns post-halving in 2024, combined with technological and regulatory advances, makes Bitcoin an attractive investment opportunity.
Bitget CEO Gracy Chen said a lower supply of new Bitcoins would reduce the chance of the cryptocurrency falling in value, although it remains a volatile asset.
“However, investors must deal with their inherent volatility and risks, and remain aware of the dynamics of global markets.
“Portfolio diversification remains key to offsetting Bitcoin’s volatility and ensuring a balanced investment strategy.”
Bitcoin reached $87,800 in November 2021, but fell below $25,000 just a year later as global inflation rose to its highest level in three decades and central banks around the world began raising interest rates.
“Bitcoin is an unpredictable asset and remains sensitive to macroeconomic forces, including the global economy inflation And scholarship achievement,” Ms. Chen said.
But there is also potential for Bitcoin to continue growing until the next ‘halving’ in 2029.
“As it stands now, Bitcoin is on track to reach $100,000 by the end of 2024,” Ms. Chen said.
“If it can cross that psychological threshold and continue to show strength, there’s no reason why it can’t continue to outperform other assets through 2025 and into the next halving.”
Future of money
Since 2022, at least 73 percent of transactions on purchases of $10 or less have been made with a card rather than cash, data from the Reserve Bank of Australia shows.
But Ms Bowler, an enthusiast for a digital future, said there was still a case for physical banknotes.
“I don’t think it will be completely eradicated,” she said.
“There are still parts of society that value the use of cash: for people with disabilities, it is easier to understand the cash in their pocket than a digital format.”