Cryptocurrencies could soon replace cash for international travellers – as one expert predicts Bitcoin will reach a record-high value this year.
Thailand, Singapore, the Philippines, Malaysia and Indonesia have since 2022 been trialing a system where cross-border payments can be made within seconds.
Project Nexus, a concept being refined by the Bank of International Settlements with several Asian countries, means international travellers can scan a QR code and choose which currency to pay for things like a meal or a cup of coffee.
BTC Markets chief executive Caroline Bowler said this platform could one day be expanded so international travellers can pay for goods via Bitcoin or Ethereum, saving the need to go a currency exchange every time they visit a different country or incur hefty fees at a foreign ATM.
‘If it’s possible for those countries to do it, it’s very, very possible for to do it,’ she told Daily Mail .
Cryptocurrencies are being touted as a great investment that could soon also replace cash for international travellers (pictured is a stock image)
Thailand , Singapore , the Philippines, Malaysia and Indonesia have since 2022 been developing a system where cross-border payments can be made within seconds (pictured are travellers in Phuket)
‘The work has already been done, proof of concepts have been proven, we can now join in with the rest of our neighbours.
‘It depends on the different set-up but you could choose if you want to pay in Bitcoin or Ethereum, you can choose the crypto you want to use and off you go.
‘It’s as straightforward as that.’
In Thailand, and other parts of south-east Asia, consumers are increasingly using QR codes to make payments overseas or even for everyday transactions.
‘What they use it for are high-frequency, low-value payments – buying your coffee or going for a taxi, they all do it through QR payments,’ Ms Bowler said.
Those not wanting to use a QR code could also have the option of a tap-and-go debit card linked to cryptocurrency.
‘You look at the cards in your wallet and you say, “Okay, I want to pay on my crypto account today” so you take out your crypto-linked card, then you tap and go,’ she said.
‘You could choose if you want to pay in Bitcoin or Ethereum.
‘The successes of Bitcoin and other cryptocurrencies is about the speed at which you can make a transaction – if you’re looking to send money overseas, it’s particularly effective at that.’
Bitcoin predictions
Bitcoin, the world’s most valuable cryptocurrency, earlier this month reached a record-high of $108,000 but it has since retreated to $97,000.
But about every four years, the amount of new Bitcoins issued is halved, with 19,687,500 of them issued before the April halving.
Bitget managing director Gracy Chen said a lower supply of new Bitcoins would reduce the likelihood of the cryptocurrency plunging in value, although it remains a volatile asset.
‘Anticipating the 2024 Bitcoin halving, investing in Bitcoin still holds significant promise,’ she told Daily Mail .
‘Reflecting on past surges post-halvings, alongside a reduction in new Bitcoin supply and escalating institutional interest, a bullish future seems a reasonable prediction for this halving event. ‘
BTC Markets chief executive Caroline Bowler said this platform could one day be expanded so international travellers can pay for goods via Bitcoin or Ethereum
The innovation would save travellers from having to visit a currency exchange every time they arrived in a new country
Ms Chen is predicting Bitcoin will reach $110,000 in 2024, putting it marginally above this month’s record high.
‘At current rates, factoring in rising institutional demand, easier retail access, and diminished miner sell pressure, it’s possible that Bitcoin could even surpass current price predictions,’ she said.
‘The potential for high returns post-2024 halving, combined with technological and regulatory advancements, makes Bitcoin an attractive investment opportunity.
Bitget managing director Gracy Chen said a lower supply of new Bitcoins would reduce the likelihood of the cryptocurrency sliding in value, although it remains a volatile asset
‘However, investors must navigate its inherent volatility and risks, staying aware of global market dynamics.
‘Portfolio diversification remains key to offset Bitcoin’s volatility, ensuring a balanced investment strategy.’
Bitcoin reached $87,800 in November 2021 but it sunk below $25,000 just a year later as global inflation soared to the highest levels in three decades and central banks around the world began hiking interest rates.
‘Bitcoin is an unpredictable asset and remains susceptible to macro forces including global economic inflation and stock market performance,’ Ms Chen said.
But there’s also potential for Bitcoin to keep growing until the next ‘halving’ in 2029.
‘As it stands, Bitcoin is on course to reach $100K by the end of 2024,’ Ms Chen said.
‘If it can pass that psychological threshold and continues to show strength, there’s no reason why it can’t continue to outperform other assets in 2025 and all the way through to the next halving.’
Future of money
Since 2022, at least 73 per cent of transactions on purchases of $10 or less have been done with a card rather than cash, Reserve Bank of data showed.
But Ms Bowler, an enthusiast for a digital future, said there would still be a case for physical banknotes.
‘I don’t think it would be completely eradicated,’ she said.
‘There are still pockets of society that value using cash – people who have disabilities, it’s easier for them to be able to understand the cash in their pocket rather than a digital format.’