Ecommerce is changing, as is the state of digital finance. This gradual shift towards mainstream adoption of decentralised finance has been happening for a considerable amount of time. Soon, blockchain technology and the integration of cryptocurrencies in our day to day transactions will be commonplace in the vast economic aether. The monetary world has a need for what DeFi can offer – take credit card rates, for instance. Bank of England recently revealed figures showing that the average annual interest rates offered on credit cards has risen to 21.49%, compared with the base rate of just 0.1%. It’s actually the highest average credit card rate since December 1998, not to mention the high rates of the credit transactions themselves. Fees processing transactions of UK-issued Visa credit cards became so high that in January, Amazon told customers that they would stop processing their payments made on these cards. At the time, Amazon blamed its decision on “the high fees Visa charges for processing credit card transactions”. They’ve since struck a last-minute deal which has allowed the continued use of Visa credit cards on Amazon, but this feud has lent itself as a testimony to why the financial future of ecommerce may lie within blockchain.
Offering New Financial Freedoms
Cryptocurrencies have found themselves in the digital hands of the “unbanked” – those without access to a bank account. The event of unbanked individuals being given access to crypto has provided financial autonomy to a group of people who were previously negatively affected by their situation. These citizens often live in extremely rural areas, lack education, or lack the paperwork necessary to open a bank account. According to a study by the British research platform Merchant Machine, 33% of Eastern Europe and the former Soviet republics remain financially excluded. It makes sense that countries such as El Salvador have recently begun to accept Bitcoin as legal tender. Wealth is being generated through new retail investments being made in the crypto industry. Singapore’s largest lender, DBS Bank, actually plans to offer crypto trading services to retail customers by the end of the year. Using crypto as a means of exchange for the purchasing of products will boost online sales, as crypto opens up new financial doors for people, offering them different avenues for making payments.
New Norms & Innovations In Clothing Retail
A new crypto-based project who are making unique strides in this up-and-coming decentralised retail sector is Faith Tribe. Stemming from Parisian luxury brand Faith Connexion, Faith Tribe’s new platform enables fashion designers and creatives to collaborate on the design, NFT minting, and physical production of luxury fashion items. A selection of these clothing products will be available on Faith Tribe’s marketplace, with all items priced in the platform’s native currency, $FTRB. These physical clothing items may be paired with digital NFTs of the item’s design on the blockchain. Interestingly, these clothing items have a fixed price, despite being valued in cryptocurrency. Therefore, no matter how the price of $FTRB is influenced, consumers can still obtain a consistent amount of Faith Tribe clothing. Furthermore, when a person buys an item on Faith Tribe, the tokens spent are burned, creating a beneficial deflationary effect on the Faith Tribe community’s economy.
Evidently, the need for cheaper transactions and more accessible banking systems has brought us to the advent of a new financial age. While traditional banking won’t completely disappear anytime soon, crypto has shown itself worthy of filling in the gaps where other economic options have been found lacking. New money continues to pour into the crypto sector, and as the luxury fashion industry continues to thrive, projects such as Faith Tribe will bring influence and innovation into this new and exciting market.