Cryptocurrency enters the Cashback markets

Cryptocurrencies are starting to become even more mainstream thanks to a new partnership between several UK retailers and FinTech company Mode.  Whilst shopping online, we’ll soon have the option to receive loyalty rewards in the form of bitcoin.

Retail giants like Boots, Ocado and Homebase are getting involved so when shoppers pay for goods on their websites, they can receive cash back in bitcoin through a Mode account enabling them to accumulate cryptocurrency, for some of us for the very first time, just by making every day purchases.

It’s fair to say that with Bitcoin currently valued at £43.58k it will take some time to own an entire coin just through shopping for essential household purchases and this could lead to a somewhat dangerous temptation to overspend, especially for those new to cryptocurrency.  An app will display all the available offers which ultimately is a big step forward in bringing Bitcoin into the wider market place and making it far more accessible and understandable.

Cryptocurrency has been shrouded by a multitude of jargon and the need to understand digital wallets, exchanges and complex registration processes which is highly time consuming and lacks financial regulations.  PayPal recently announced the introduction of its new crypto services within the UK, allowing people to buy, hold and sell cryptocurrencies but not to send cryptocurrency to anyone or use it as a payment method.  The aim according to PayPal is to introduce more people to this market and help their understanding of how it all works with access to articles and collateral to keep up with the nation’s increasing interest despite the controversy it attracts.

The Bank of England has recently warned that although cryptocurrency is currently at low risk its exponential growth is a cause for concern as it integrates into more traditional financial systems, after previously stating that regulation needs to be considered “urgently”.  The FCA has identified a concern with those aged under 40 where 69% of digital investors mistakenly believe that digital currencies are regulated, believing they have a form of security should the worst happen.

With adverts now appearing on public transport in London encouraging people to invest in new coins (Floki Inu), whilst they are cleared legally, are courting controversy with regards to whether Transport for London should have accepted them in the first place.  However they certainly highlight the fact that regardless of the risks involved cryptocurrencies are not likely to disappear any time soon.  It’s critical that investors are not lured in by the promise of getting rich quickly but really take time to understand the risks vs returns before they part with their money and of course we would always advise getting independent advice across all your finances and investments.

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