The expanded accessibility of POS machines and the proven security of the same have gone far in expanding the use of digital currency in a widening sphere of transactions. The move to digital currency for regular transactions is seen by many as a veritable panacea to the issue that plague nations, especially in developing economies. The expanded use of digital transactions speeds commerce, and increases the visibility central governments have of economic activity, and are better able to identify problem areas (corruption, misuse of funds, embezzlement).
Statistics available with Bangladesh Bank revealed that some Tk 128.07 billion had been transacted through POS in the last fiscal year while the amount was Tk 105.90 billion in FY15.
Mercator Advisory Group believes developed economies with proven social safety nets are well positioned to move towards total digital commerce, as the unbanked population will not be left on the sideline with alternative access avenues to commerce. However, in economies less attuned, the rapid migration to digital commerce could create barriers to direct economic participation for the unbanked population. Mobile communications will play a role in extending the reach of financial services to those that were previously unbanked, with smartphones ability to act as POS with applications and peripherals.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies Advisory Service at Mercator Advisory Group
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