Contrary to popular belief, cryptocurrencies have a potential long-term future ahead of them. Interestingly, one major sector where cryptocurrencies have gained importance is e-commerce, which has been recognized in the latest Global Trade Research Initiative (GTRI) report. In that context, it is believed to have become evident that cryptocurrencies will be the next step in securing the prospects of global e-commerce, with related regulations also in play. “I believe that cryptocurrencies have the potential to revolutionize the global e-commerce landscape. They offer advantages. However, its widespread incorporation also raises concern. Striking the right balance between leveraging its benefits and addressing the challenges is crucial,” Sumit Ghosh, co-founder and CEO of Chingari, a Web3.0 social application, told FE TransformX.
What do we know and what have we learned?
MarketBased studies have shown that cryptocurrencies provide online retailers with additional payment options. It is believed that the influence of cryptocurrencies on e-commerce can guarantee cheap transaction costs, since they do not require the presence of third-party media. Additionally, cryptocurrencies can provide e-commerce platforms with other benefits, such as transactions through encrypted wallets, decreased fraudulent transactions, and greater privacy between buyers and sellers. According to a survey conducted by HSB, 36% of US-based small and medium-sized businesses have begun allowing cryptocurrency-Guided payments. The survey data also found that 59% of the same type of companies intend to legalize cryptocurrency-based payments in the future.
In recent years, we have seen different brands inculcate cryptocurrency-backed payments for online transactions. In March 2021, PayPal, a financial company technology The company, introduced its 'Pay with Crypto' to allow US users to make online payments to online retailers using crypto tokens. Additionally, Expedia, a travel The technology company collaborated with Travala, a cryptocurrency-based travel booking company, to enable payments at more than 700,000 accommodations and hotels using more than 30 cryptocurrencies, along with eBay, an e-commerce company, and also issued a statement that they may start accepting cryptocurrency-based payments in the future.
In recent times, the main point of discussion is considered to be the GTRI report, which has argued for the need to add cryptocurrencies in the current discussions on e-commerce at the World Trade Organization (WTO). Following the report, it has been emphasized how a rise in concerns over cryptocurrencies may affect the prevailing scenario of e-commerce at the WTO, and that talks should be held to categorize them as "electronic transmissions." “I think cryptocurrencies should be added to the current WTO negotiations on e-commerce. Adding cryptocurrencies to negotiations should help ensure that they are treated fairly and consistently across different jurisdictions. This may create a more favorable environment for cryptocurrency adoption in e-commerce. It is also important to note that the WTO has agreements that are relevant to cryptocurrencies,” specified Shrikant Bhalerao, co-founder and CEO of Seracle, a blockchain technology company.
How can WTO policies and cryptocurrencies coexist?
According to the WTO definition of electronic commerce, it is classified as the production, distribution, sale or delivery of goods and services using electronic means. Based on what the GTRI has suggested in the report, WTO partners are expected to give more importance to cryptocurrency-oriented discussions within the framework of the two current negotiations on e-commerce, namely the Joint Initiative on Electronic Commerce (2019) and the WTO Electronic Commerce Moratorium, to prevent disputes. Market reports suggest that since 1998, WTO partners have reached a consensus not to apply customs duties to electronic transmissions, which are defined as payments made through electronic means. In this context, experts justify the use of cryptocurrencies in electronic commerce industry.
“Given the impact of cryptocurrencies on the global e-commerce landscape, GTRI believes that cryptocurrencies and their exchange as a currency for the electronic commerce of goods and services justify their inclusion given the rapid adoption and preference for using cryptocurrencies globally. . “The exchange of cryptocurrencies due to their electronic transmission should qualify it as an e-commerce transaction and therefore should be included in the ongoing WTO discussions,” Roshan Aslam, Co-Founder and CEO of GoSats, a bitcoin Rewards request, highlighted.
Furthermore, the report also states that the addition or removal of cryptocurrencies, along with the positions of certain countries, will be crucial in shaping upcoming international e-commerce policies. An increase in digital purchasing prospects is predicted to see cryptocurrencies play a more crucial role in shaping purchasing decisions. Data released by the Cryptocurrency Adoption and Consumer Sentiment Report revealed that about 13% of cryptocurrency users invested in cryptocurrencies to facilitate online transactions, and about 38% invested due to their interest in the technology. . Market reports have shown that cryptocurrencies will be widely introduced in e-commerce due to the presence of open API mechanisms and website plugins. “As e-commerce grows, cryptocurrencies should be poised to become a major enabler of digital transactions. The speed of global acceptance of all cryptocurrencies shows that cryptocurrencies are here to stay,” Aslam concluded.
