Cryptocurrency and blockchain technology are likely going to reshape personal finance over the next decade.
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Even if you never buy bitcoin, ethereum or any other digital currency, the impact could affect how you save, spend and manage your money. Here are three ways crypto could transform your financial life by 2035.
The most immediate change will be in how people send and receive money.
Pegged 1:1 to fiat currencies, like the U.S. dollar, stablecoins brought the stability that cryptocurrencies lacked, making them practical for everyday transactions. A decade from now, sending money across borders will likely be faster and cheaper.
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“We believe in the potential of stablecoins to streamline payments and commerce across the value chain,” said Jorn Lambert, chief product officer at Mastercard.
This means your future paychecks, bill payments and international transfers could all flow through blockchain-based systems that operate 24/7 without traditional banking intermediaries.
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Stablecoins are already gaining traction for everyday use because of their speed and low fees.
“We’ve seen some interest where banks and other companies will want to create their own stablecoin,” said Coinbase CEO Brian Armstrong.
In fact, companies like Circle and JPMorgan have already developed their own stablecoins to facilitate faster payments at lower fees than traditional banks.
As stablecoins become more integrated into finance, they could power everyday spending, from paying bills to shopping online and transferring money, providing more flexibility and efficiency.
The most revolutionary change may come from decentralized finance (DeFi), which could entirely remove traditional banking middlemen.
Currently, some DeFi platforms allow users to lend, borrow and earn interest directly through smart contracts. These platforms offer better returns than traditional savings accounts.
A decade from now, people may bypass banks completely when it comes to saving money, borrowing and even lending.
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This article originally appeared on GOBankingRates.com: 3 Ways Cryptocurrency Could Change How You Manage Your Money Within a Decade