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ReadersSpeak

Cryptocurrency too risky? Dave,

've heard talk of rampant price manipulation when it comes to bitcoin Thank you for bringing price manipu-
and other digital currencies. That is indicated by a rapid rise in price fol- lation in cryptocurrency exchanges
lowed shortly by a sudden, rapid fall. I mean a fall happens in a matter of to our attention. Offering a range of
I minutes, even seconds after the rise. There's a lot of talk about blockchain stable, secure payment options is par-
and cryptocurrencies being the wave of the future for payments, but how can amount to the payments industry and
we trust something so volatile, especially when it's unregulated? the merchants we serve. You do have a
point about volatility: it is highly det-
Dave Fordmount rimental, and if it continues to be an
Merchant Level Salesperson issue for digital currencies, it is hard
to envision how cryptocurrency pay-
ments will become popular for main-
stream merchants and consumers.

However, volatility has to do with
a lack of ability to control specula-
tion, not with blockchain itself. While
blockchain technology underpins bit-
coin and other digital currencies, it
is not synonymous with them. And
whatever happens with cryptocurren-
cies, blockchain use is likely to grow
in significance as payment systems
evolve.

Blockchain technology relies on feder-
ated independent computing power to
capture and record transactions. It can
be applied to any business process that
requires simultaneous access to and
sharing of information within and be-
tween enterprises. Some researchers
have found it to be ideal for facilitat-
ing the exchange of value because it
can authenticate contributing parties,
obfuscate identifying information to
provide anonymity, and offer a tam-
per-proof system that prevents unau-
thorized alteration of shared data. Re-
searchers have also said its ability to
support digital money certificates may
ultimately replace paper checks, the
demise of which has been predicted
for decades.

Editor
What have you noticed?
Have you observed a new phenom-
enon that might impact the industry
for better or worse? Are there unin-
tended consequences to some of the
latest trends in payments? Do you
have a question for us? Get in touch at
greensheet@greensheet.com.

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