Cryptographic currencies are the future payment vehicle for world travel…

I know, it’s a huge statement. If you hang in there with me I’ll explain why I’m confident ‘magic internet money’ will have a large say in where we go from here.

When I travel I love changing currency over into a new currency. Handling the multi-coloured paper signals adventure, something new and foreign that opens doors to experiences someplace far away, but with the digital age, cash is fast becoming a collector’s item and the value behind these currencies is losing its sting.

With easy access to the Australian dollar, I’ve never really faced problems in terms of my buying power overseas, but when I do I’ve had the capacity to just save more to cover the exchange rate. I’m lucky — but what about those who don’t have access to a stable currency that allows travel across the globe in relative luxury?

Let’s face it, ever since Nixon took the US$ off the Gold Standard, paper money became a belief system based on debt, and it has a shelf-life.

100+ million people live below the poverty line – and in many cases, paid in worthless paper for back-breaking labour 7 days a week. I’d wager, travel is the last thing on their minds, but surely there’s a way to make reliable money accessible to all without the levers attached to it by the elite few?

It’s time for a new approach.

Being a frequent traveler, I’ve noticed there are multiple areas of friction that our financial system forces upon us that are arbitrary, and at times infuriating. Well, maybe not for much longer…

Here are a couple of ways digital currencies can help streamline the travel experience:

Decentralization — Cryptocurrencies are based on the blockchain, or ‘Distributed Ledger Technology’, and are accessible anywhere in the world. No bank, corrupt regime, or government, can completely control a decentralized and distributed ledger. Therefore, the power of your money is in your hands.

Fast — Distributed Ledger tech is efficient and quick. The fastest cryptos take mere seconds for transactions to process anywhere in the world 24/7.

Forget waiting 3–5 ‘business days’ for payments to clear through banks & Western Union.

Borderless — No banks, no middlemen, and no sovereign borders. You’re your own bank and can hold your private keys (access the blockchain) in a secure cold storage wallet. Take your ‘wallet’ traveling with you and transact anywhere in the world or just use your phone.

If you think that sounds pretty cool, then without knowing it, you’re a fan of Cryptocurrencies.

While this all sounds great, Taxes are the elephant in the room here.

All current crypto transactions incur Cap Gains Tax in most western countries, which inhibits its adoption as a payment mechanism. Already there are proposals to create tax-free thresholds for digital currencies and some apps have found seamless ways around this all together, but it will be fascinating to see how countries regulate this new method of payment and if realistic solutions can be found for your travels.

Here are a few instances I’ve run into whilst traveling that I think crypto could make an instant difference:

Have you ever needed to add funds on a travel card while overseas only to spend hours on the phone with your bank just for the privilege of doing what you want with your own money?

Yep, been there. Hated the experience. Travel cards are a way for the banks to keep you connected to their ecosystem and if you don’t like the thought of that, then there’s an alternative. There are already ways to pay with your phone through a simple QR code or crypto wallet address to any business overseas in seconds (as long as it has facial recognition or a finger scanner). FYI: Samsung S10 has a totally secure blockchain wallet for this functionality and many apps on iPhone already allow this.

I’d always recommend a hardware wallet for any trip abroad — the Ledger Nano S is the best option for security

Have you ever gone to a Currency Exchange vendor and been slugged an exchange rate + commissions only to find that 0.73 AUS to USD suddenly becomes 0.67 after fees and charges?

We are so used to being ripped-off that most of us just expect it and exchange larger amounts of money less often leaving you in the awkward position of traveling far from home with big bundles of cash on your person. Not ideal. With crypto you don’t have to worry about exchange rates ever again…seriously. By using crypto you will literally be putting them out of business. Much like it is already with ApplePay or Credit Card your phone will be the primary method of payment but without the exorbitant fees and charges of an exchange.

Have you ever needed to make a large payment to a person or company overseas that isn’t in your native currency?

We had that pleasure when we paid for our overseas wedding.

From AUS to USD and then finally to a Vietnamese bank…

We were slugged hundreds of dollars in fees through Western Union and then came the conversion rates — and it took days! The user experience from our own bank was unclear and frustrating to understand, and the codes and methods required for payments to an overseas account were outrageously cumbersome. Crypto would have taken mere minutes for that transaction to clear without the hassle.

Middlemen love to take their cut from apathetic travelers and why not, they can, and they expect it, but the wheel is slowly turning. Without sounding too Cypherpunk, the industry is crying out for disruption and digital currencies may be the best chance we’ve seen to that end. If you’re like me and are concerned for the future of our monetary system, then we may need to transition more urgently than you might think.

We need a plan B.

Cryptocurrencies may not be the panacea, heck they may all fail and we’ll just have to deal with it, but for now, it has brought forward a mature conversation on a more equitable financial system.

For the traveler, and for the people you meet on those adventures, this can only be a good thing.

Signing off.