Cryptocurrency Benefits While Banks Suffer During Pandemic

The pandemic has not only slowed down business and the economy, it has also changed the pattern of shopping and modes of payment. People are spending more time online, some of this is devoted to shopping which is paid for using various forms of online payment. With consumers feeling more comfortable transacting finance online – interest in cryptocurrency seems to have significantly risen. We will come to crypto in a moment, let us briefly talk about the state of the banking industry during the same time. 

With the volume of financial transactions taking a serious hit and money transactions, related to internal and external trade coming to a crawl, banks have been going through extremely tough times. Investors have been quick to realize that the economic slump is far from over. Doing the logical thing they have chosen to bail out from the banking sector. Analysts claim that some of that money has been invested in gold. While stiff gold prices could indicate such a movement, let’s leave that topic for another report. 

Now let’s see what happened to the crypto industry during that period – things were rosier for sure. Leading crypto exchanges revealed a surge in new accounts opened. It is not hard to believe that a significant portion of these accounts, got their hands into crypto trading. People were spending more time online, they were by now quite comfortable with making online transactions. Efforts were surely made to understand cryptocurrency better, an increased awareness resulted in the urge to explore. 

Fortunately for the crypto industry, neither BTC nor ETH the two key cryptocurrencies driving markets, had a showdown as far as prices were concerned. We are referring to a major portion of the time during which, the pandemic has been raging. This was happening as economists commented that, severe inflation was likely to set in. Consumers seemed to have seen cryptocurrency as a hedge against that eventuality. It must be said that, this was pure conjecture and nothing really substantial exists to justify, the thought that crypto could act as a buffer against inflation. 

There are strong indications that there would be increased cryptocurrency activity in the coming months. With the concept of CBDC (Central Bank Digital Currency) gaining big support, it would not be long before laws governing the crypto industry would be rolled out. Taken in a positive sense this would mean that, crypto activity would become safer and more streamlined. This would apply to both CBDC and private cryptocurrencies. 

Glitzkoin CEO Navneet Goenaka has this to say, ‘… it would be right to say that the crypto industry, would be seeing better days. At the same time, the industry has a responsibility for making crypto trade safer and more reliable. Agreed that this is a very wide statement but, we could at least make a beginning by shunning out paid crypto campaigns, being published as so called updates and expert opinions. Such reports should come with a clear message – that they are advertisements or paid and sponsored content’. 

 

GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.  

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Related Resources: [Project Updates