Global non-cash transactions grew by 10% between 2015 and 2016. China and India are leading with the highest growth rate according to the new report by digital consultancy firm, Capgemini and BNP Paribas. That is, fewer people in India (33.2% YoY), China (25.8% YoY) and South Africa (15.1%) are using cash for their transactions compared to the past. Though the report says it could be due to governments’ effort to increase financial inclusion and the rise in mobile payment systems, there are some reasons for cryptocurrency use to be factored into the equation along the line.

From exchanges to OTC
China and India are among the top countries of the world that have taken a hardline stance on the use of cryptocurrencies. In fact, both countries have banned the operation of cryptocurrency exchanges through which users could openly trade. However, as the global non-cash transactions are expected to almost double from $482B/year to $876B by 2021, the countries’ unfriendly stance against crypto could lead to more over-the-counter or real peer-to-peer transactions. A growth in the use of OTC marketplaces for crypto trading will contribute to the exchange of funds among people without going through the traditional banking channel.

In the case of China, these alternative markets are widened by the possibility of the country’s cash-to-mobile growth rate that is expected to continue growing till 2021. The U.S. is also projected to lose leadership of non-cash transaction volume to China by the same year. By then, China would solely account for 40% of global e-commerce retail though the Capgemini World Payments Report 2018 points out that the government’s effort to regulate e-wallet operators such as AliPay and WeChat could reduce the pace.

7.57% of global remittance value is lost to 'transfer fees'

Global remittances: $444 billion
Global remittance fees: $33 billion

It's time to shine, crypto ? pic.twitter.com/HEjc26mgML

— DRIVE Markets (@DriveMarkets) October 25, 2018

Blockchain gain undeniable
The report adds that several banks are already experimenting with the distributed ledger technology (DLT), a form of blockchain. It notes that DLT will bring efficiency to banking functions in the longer term including in the areas of identity management, remittances, interbank payments and settlements. Citing crypto-related projects like Sovrin, Ripple, Civic as well as the Veem and MasterCard arrangement which enables currency and payment conversion worldwide from fiat to bitcoin, the link between how the evolving financial situation would accommodate crypto initiatives is getting clearer.

A report by Barclays too says that blockchain technology is finding use beyond cryptocurrency with enterprise software being likely to be an early adopter. The global bank finds that with the need for faster, simpler ways to record transactions and manage data, the adoption will be a $43 billion opportunity.