e-commerce platform Wishque now accepts crypto payments
View(s):e-commerce platform WishQue has began accepting payments in cryptocurrency since November 5. This comes amidst warnings by the Central Bank to be cautious in such investments.
In a statement on Tuesday, WishQue said it now accepts payments in six cryptocurrency coins, including BTC, ETH, DOGE, BCH, LTC and USDC.
WishQue Managing Director Chinthaka Jayasekara said, “Cryptocurrency will support the growth of the country by increasing financial inclusion and improving fund traceability which solve a major issue in developing countries, fraud and corruption.”
With increasing global and local adoption of crypto, WishQue hopes to attract a growing consumer base of crypto holders who are underserved by existing e-commerce platforms. Shoppers around the world can avail themselves of WishQue’s over 10,000 product range using their crypto wallets.
Cryptocurrency – commonly referred to as “crypto” – is digital currency that has revolutionised online payments and transactions. Experts consider it to be the future of e-commerce as it can lower transaction fees, and augment the speed and safety of transactions.
The statement said Sri Lanka’s e-commerce revenue was over US$1 billion in 2021 and is set to grow in the coming years as the country’s Internet penetration expands beyond 50 percent. Meanwhile, the crypto market was about $1.5 billion in 2020 and is projected to reach $5 billion by 2030.
Crypto incurs a low 1 percent transaction fee compared to 3-4 percent for credit and debit cards. “WishQue will therefore be able to pass more attractive prices to customers. Crypto transactions are also virtually instant, compared to the 1-2 working days needed to clear credit and debit card transactions or the several days needed to process a refund. This is beneficial to both vendors and consumers,” it said.
Unlike credit and debit cards, which are vulnerable to hacking, fraudulent transactions and theft of personal information, crypto’s blockchain-based technology ensures that data in the supply chain and transactions between partners are visible, transparen t and cannot be erased without all parties being made aware.
The statement said that usage of crypto in Sri Lanka has not been formally regulated, but the Central Bank has said that crypto holders may engage in transactions at their own discretion. However, the government has appointed a committee to study cryptocurrency regulations in countries like Dubai, Malaysia, the Philippines, European Union and Singapore.
Already a small number of
Sri Lankan goods and service providers have offered to accept payments in cryptocurrency. However, there remains challenges in widespread adoption of this technology due to a lack of government regulation, volatility in the value of crypto coins, and the lack of technical support and infrastructure to facilitate crypto transactions.
Despite these challenges, WishQue is forging ahead in adopting this technology as it heralds the future of the e-commerce industry and brings numerous benefits to both consumers and vendors.
In a statement in April 2021, the Central Bank said while there are no regulatory safeguards relating to the usage, investment or dealing in VCs in Sri Lanka, investing or using VCs poses significant risks. They are
1. Users/investors will have no regulatory or specific legal recourse in the event of any user or transaction related issues or disputes.
2. High volatility of the value of the VCs, as it is dependent on speculation, exposing the investment of VCs to a risk of making large losses.
3. High likelihood of VCs being associated in financing terrorist activities and used by criminals to launder criminal proceeds.
4. Violation of Foreign Exchange Regulations.
“The public is therefore warned of the significant financial, operational, legal, customer protection and security related risks posed by investments in VCs to the users as well as to the economy,” the Central Bank statement said.