Digital currencies are known as cryptocurrencies. To process transactions that
are validated and recorded in a decentralized - as opposed to the centralized -
system, they use distributed ledger or blockchain technology. They have shifted
from the periphery to the center of the financial world during the past couple
of years. Regular investors have been participating, and companies like Tesla
have been taking their money.
The adolescent store Pacsun declared last year that it will start taking bitcoin
in order to stay up with one of the "main trends" influencing young people. They
primarily serve members of generation Z, who are projected to be the fastest
adopters of cryptocurrencies. 54% of current or previous cryptocurrency owners,
according to data from Pymnts.com, are members of generation Z.
additional merchants, like as Whole Foods, Home Depot, GameStop, Newegg,
Starbucks, AT&T, and Microsoft, now accept bitcoin and other cryptocurrencies at
their physical storefronts. In addition to looking at the technology, Amazon is
preparing to introduce its own cryptocurrency. This paper would further explore
the scope of Cryptocurrency in the Retail sector, the challenges and the
opportunities that may lie ahead of this.
Review Of Literature
Issues Addressed By The Research Paper
- An Analysis of the Cryptocurrency Industry
The meaning of cryptocurrencies and its significance in the retail sector are outlined in systematic order in the aforementioned paper. The author's objective, through the many sections, is to provide a high-level overview of the rising popularity of cryptocurrency and its potential impact on the retail sector.
- Motivations of Retailers Accepting Cryptocurrency Payments and Their Implications on Retail Customer Experience
The paper's authors suggest that cryptocurrencies are gaining favor among consumers and retailers as a preferred method of global payment because of their speed, security, and low transaction costs. On the other hand, some customers have been discovered to be completely oblivious to the concept of cryptocurrency payments altogether. Some customers don't like using cryptocurrencies to make purchases since they either aren't technologically advanced or don't trust the system. In spite of this, the general consensus is that digital currency will emerge after the relevant legal sub-regulations have been formed and everything has been digitized. After cryptocurrencies are placed on a legal platform by the official authorities, this study predicts that payments with cryptocurrency will be one of the alternative payment methods of the future.
- What drives the adoption of Crypto-payments by online retailers?
This paper discusses how and why online retailers are accepting cryptocurrency payments like bitcoin. The authors used a large, representative sample of online retailers to discover that only 2% of those establishments accept cryptocurrency payments, despite widespread enthusiasm in doing so. The authors argue that a lack of consumer demand is the biggest obstacle to the widespread adoption of cryptocurrencies. This problem is vividly discussed in the paper.
- Cryptocurrency as a Payment Method in the Retail Industry:
An application of Diffusion of Innovation Theory (DOI) on the characteristics of Bitcoin: the case of Bitrefill
This paper's objective is to examine Bitcoin as a payment method and assess existing models in order to shed light on the possibility of its wider adoption by retailers. The authors have used the DOI theory and analyzed the TAM model to identify Bitcoin's intrinsic properties that will either encourage its acceptance or cause it to be rejected by traditional retailers.
- Scope of Blockchain Technology in the Retail Industry
Even while the financial sector has been adopting Blockchain technologies with great success for several years now, other sectors, such as retail, stand to benefit from this revolutionary technology as well. It has been estimated that by 2023, retail Blockchain will reach $2.3 billion, with a compound annual growth rate of 96.4%. This would make retail Blockchain the fastest-growing Blockchain sector. The paper delves into the potential of blockchain technology in retail, as well as sheds a little light on the role of cryptocurrency in the retail industry.
- Whether the scope of Cryptocurrency can extend to replacing regular currency in the Retail Sector
- Whether the buyers would potentially accept Cryptocurrency as a mode of payment
- Whether transactions in the Retail sector would be governed by various legislations that govern the manner in which Cryptocurrency exists in an economy
- Whether there would be any positive or negative implications for the buyers or the sellers with the expansion of Cryptocurrency's identity in the Retail sector.
- Whether Blockchain Technology has the scope to expand into the realm of payments in the Retail sector.
- To critically analyze the nuances of Cryptocurrency and Blockchain Technology.
- To critically analyze the scope of Cryptocurrency as an alternative method of payment in the retail sector.
- To comprehend the distinguished legal aspects and features of payments made to Retailers via Cryptocurrency.
- To emphasize the growing phenomenon of Blockchain Technology and its impact, both negative and positive on the Retail sector.
The research would be conducted using a Doctrinal Approach. The doctrinal
approach in research aims at explaining, evaluating, analyzing, and finding the
facts, ideas, concepts, and theories underlying specific laws, legal
institutions, provisions, and policies. Traditional theories related to the
subject matter along with the intricacies intertwining the two concepts involved
would be the focus of the researcher.
Primary data would be collected through
questionnaires and surveys. Secondary data for the study would be collected from
books, magazines, newspapers, journals, and web portals among other sources.
The adoption of cryptocurrencies is still relatively young. A small percentage
of establishments accept digital currencies in-person, and even fewer accept
them online. Nevertheless, this is expanding quickly as a result of rising
awareness and acceptance.
Even though individuals are still at the beginning of the learning curve for
cryptocurrencies, some of the most well-known names in the retail industry were
among the early adopters. This instant sense of comfort and trust, which was
before lacking, is brought about by name familiarity.
Everything will change as cryptocurrencies become more popular. International
travelers won't have to worry about currency conversion while using bitcoins as
a form of payment. People will be able to easily visit a retail establishment,
purchase a few things, and pay using Bitcoin, Ether, or any other form of
virtual money. The speed and transparency of transactions can differ from many
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- Is Cryptocurrency the Future of eCommerce? | Manchester Digital
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- Cryptocurrency: Everything Retailers Need To Know