The digital economy is constantly shifting and evolving with different trends and technologies taking over the limelight. Cryptocurrencies like Bitcoin and the Block Chain technology behind them have added a new dimension to the bartering economy.
The launch of Facebook’s Libra has run into complications with governments and this could have several knock-on effects for contra dealing in general.
Non-Monetary Deals are Likely to Increase
The surge in Bitcoin in 2017 caused ripples throughout the financial services industry, it also put cryptocurrencies at the forefront of the public. Currencies like Ethereum, Litecoin and Facebooks proposed Libra are increasing the likelihood of non-traditional monetary transactions taking place.
Alongside this has grown the digital barter industry. Bata is a digital currency that is focused on bartering with no monetary transactions. It focuses on pooling bartering businesses together and giving them a currency to trade with. This will make the process more flexible and increase the total amount of barter trades going through.
They are probably going to come under more financial regulation
One thing the government and its regulatory bodies have tried to crack down on is the amount of regulation that these different fintech platforms have to comply with.
In a view to bartering and contra dealing, all transactions are treated as cash-based. The regulatory stance in the UK is that these transactions must be claimed as normal.
In terms of cryptocurrencies, unless governments decide to accept them as remuneration for taxes, they are unlikely to completely take over traditional currencies.
In this scenario, the benefit of a barter transaction is the fact that you are opened to trading with a customer you would have probably not reached under normal channels. This principle will be true for online platforms that specialise in contra-dealing as well.
The platforms for partaking in the barter economy will increase
As with many new developments in the fintech industry success in the early adopters causes an increase in many other platforms looking to get some skin in the game. Websites like Fiverr and Lisita have taken the basic principles of trading services for cash/other services online.
In an ideal world, this would increase competition, leading to better prices and services for consumers looking to trade services online.
Traditional currencies may be under threat
With technologies like blockchain and the increase in non-monetary trading online, there is a case for suggesting that traditional currencies may be under threat. The new digital economy could promise a more inclusive global economy with less nation based, financial fluctuations.
If you have any questions on the future of digital bartering or contra dealing in general, don’t be afraid to email us with any queries.