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- Afterpay will be presenting its opinion regarding the crypto assets in front of the Senate of Australia.
- The firm believes that local merchants can slash payment costs by using cryptocurrencies.
Afterpay, an Australian purchase now pay later firm (BNPL) believes that neighborhood traders can lower charge prices with the aid of using cryptocurrencies. The firm has made a submission to a Senate inquiry into Australia as a technology and financial center.
Afterpay said that using blockchain-primarily based total transactions could reduce the charges related to conventional fee methods. It will also include card issuer, network operator, and banking fees. Merchants will get the benefit from the cryptocurrency model, as card network fees are entirely removed from the equation and the customer/ payer bears the transaction cost.
The consumer will endure the fee of validating the fee at the blockchain beneath the crypto model. This may want to both be very reasonably priced or will be expensive relying upon the trade wherein the transaction is performed or how congested the community is at any given time.
If such a scenario is there, Afterpay has said that the transaction fee will be transparent and customers will be given the choice to wait for more favorable network conditions and a lower cost before making any transaction.
Representing stake to Senate
The inquiry is investigating a variety of factors related to financial techs like economic and employment opportunities posed by crypto and blockchain tech, barriers to the uptake of new technology, and the impact of corporate law restraining new investments in Australia. Afterpay will be presenting the issues before the Senate Committee.
BNPL competitors Zip have restructured the plans to offer crypto trading services for its Australian and US-based customers. Afterpay has not yet revealed any plans to work with digital assets. On the other hand, Square, a crypto-friendly firm has acquired Afterpay in a $29billion stock deal announced last month. The firm will enter the space in the future.
Role of Stablecoins
Afterpay insisted that the Australian government should work with the crypto sector to consider what framework an optimal environment for an AUD-backed stablecoin should look like.
Afterpay feels that the users using stablecoins should be given protection concerning the asset. At the same time need to regulate in a manner that does not hamper the fintech revolution in Australia.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
