Hello readers. Today I will just go over some of the issues related to processing cards and stuff, and how bitcoin payment processor impacting the traditional online business and marketplace for good.
Today when people start to bring out prepayment cards or cards, in which they exchanged crypto straight to fiat, one of the problems you've got is the market is still a monopoly. The market is controlled by MasterCard, Visa, and American Express pretty much, but also they are very protective of how they're used. Now, I'm not sure how they come to these agreements, but I'm sure some of it’s legal in the sense that they've had some stuff they have wanted and they have exchanged some of it for being able to operate and do something else. This is why businesses like Canadian Pharma, call center industries, etc. are something that struggles to use merchant processing. You will find other industries, including crypto, which are having a hard time with their traditional payment processors. Now, the traditional payment processors will say, well, it comes down to liquidy and understanding where the money comes from, but realistically I think it's just protecting their own markets and protecting their main clients. For example, the US-based processors, and they are probably very keen not to see money leave the country, so maybe they are blocking from an offshore point of view.
Now, from my own experience, be aware when anybody pushes one of these cards saying that they have got a deal with some X Y Z, you've probably seen that a couple of times, because MasterCard or Visa would tell them not to advertise it and actually retract what they have said, because it's not guaranteed. This is why when MasterCard either threatened or actually did cut off somebody's merchant processing service, they may just ditch the crypto card because quite simply there's too much of a risk for them. A lot of businesses have recently moved down to Malta. But the point being a lot of businesses deal with “gray products” like generic pharmacy, generic this or generic that, you know, the gray products which are actually legal. They're not doing anything wrong, it's just that the fact their governments like to protect their own industries and this is why Canadian pharmacy has become a big issue in the USA. Yes, you can still order everything online anywhere around the globe by the mail, but they will go after the merchant processors. Not because the merchants are doing anything illegal, but quite simply it's the only way they can cut people off financially. This is why I believe there's a lot of online pharmacy companies and other “gray” businesses have moved to Bitcoin and other cryptocurrencies where they can actually still trade. Instead of using a traditional payment processor, they are now using a Bitcoin payment processor.
However, not everything is golden on this side too. You have still got a liquidity issue of having to pay suppliers and stuff in fear. So this is where I think the battleground is - for making the crypto and bitcoin payment processors mainstream, we need to find a solution of this fear. This is why because there have even been reports of some people being arrested for actually trading Bitcoin, and that’s not illegal by any means. It's probably a difficult one to get around because the government and banks know this is the last hurdle they are putting. Because once this liquidity issue is gone, once you can convert bitcoin and other cryptos to fiat (and vice versa) more easily, that makes the crypto a true currency. And I know you've got Coinbase and whatever, but Coinbase is not walking down to the mall and buying a coffee, that is basically like withdrawing your savings or getting money out to buy a car, which is not your day-to-day use. What your day-to-day use is when you get mass adoption, and this is the bit where nobody's really got into this yet.
At the moment, everyone’s talking about the existing banking system, decentralized financial control, etc. but at the end of the day, everybody is utilizing the same thing. And I'm not so good at finding solutions, but I understand where the problem is. Quite simply, until that bridge is broken and another solution is found, these conversations are just going to keep going round and round. People will keep using the prepayment card and get it to a point and work in certain countries, but then restrictions may actually get dropped on it, especially if they can see that is in crypto. Because a lot of time, third-party processing is the merchant companies. They'll be set up as something completely different, and then they'll let you piggyback on the back of them and because that's how a lot of this money gets processed. And this is where the problems come in. Because what the big companies will do, if they catch a merchant doing it, they will refund everything. I'm not kidding here, they will actually refund everything that they have seen on there, even if the product has already been shipped out. Because they know this will financially cripple you, and that's why they do it.
But just bear that in mind there sometimes a lot of the ventures in crypto aren't feasible right now. These are the things that need a solution on - how to get around that system, how to change that system, how do you get it to the point where people can transact between people. One of the solutions can be is actually getting crypto legit and legal token, with a stable or roughly fixed value. That is the point when people would start to use bitcoin for a cup of tea, coffee, meals and stuff like that. But then the next hurdle is being able to get it out of the system, but if you've got something that's actually stable, it's the starting point.