Cryptocurrencies are now present in business travel. Bitcoin, Etherum, Dogecoin… We hear about them from everywhere. Indeed, the crypto-currencies intrigue both large authorities and individuals. What is cryptomoney? And what does it have to do with business travel?
Cryptocurrency: definition
To begin with, cryptocurrencies have been known thanks to one of them, you all know it: Bitcoin. Namely, created in 2009, Bitcoin is not the first crypto-currency to have emerged. In fact, previous cryptocurrencies have not been very successful, not to say failures. Among them is DigiCash, which declared bankruptcy in 1998.
Today, crypto-currencies are also known as virtual currencies, digital currencies, electronic currencies or crypto-assets.
But what exactly is a cryptocurrency? To put it technically, a crypto currency is an asset that is exchanged in P2P (peer-to-peer), that is to say between individuals, not through a bank for example. Also called virtual currency, crypto currencies have no physical medium such as coins.
How do cryptocurrencies work?
Currently, the blockchain is used to transfer these electronic currencies between owners. In order to better understand this system, here is a small definition of what blockchain is: it is defined as “a technology for storing and transmitting information, transparent, secure, and operating without a central control body” (Blockchain France). As far as cryptocurrencies are concerned, the blockchain allows individuals to transfer value on internet.
In short, this virtual currency is just a sequence of numbers that is transferred from one person to another.
Cryptocurrencies and blockchain in business travel
Now, the business travel industry is interested in cryptocurrencies and especially blockchain. Especially since several airline tickets have already been purchased with Bitcoins (AIFE). That said, it is rather the blockchain that interests the business travel sector. Indeed, the blockchain makes it possible to trace 100% of a trip. Very useful if the traveler has to use his personal payment card, because then he has to get reimbursed. In this sense, the employer can trace, thanks to the blockchain, all expenses related to the cost of the trip.
It should be noted that in a blockchain it is impossible to delete or modify the recorded data. Thus, the employer can access all the travel and payments of the traveler on business trip. With this in mind, proof of payment can be obtained easily and quickly.
It is undeniable that virtual payment is becoming more and more common today. Even on business trips. However, Bitcoin is very volatile and many cryptocurrencies have already fallen. That’s why cryptocurrency is considered far too uncertain to become a precise value within companies.
So in that case, why embrace cryptocurrencies in business travel?
Since blockchain is the technology on which cryptocurrencies are based, being able to organize a business trip with it would simplify the process. This is because on the one hand, cryptocurrencies know no boundaries and on the other hand, they are accessible to everyone. In this sense, the use of cryptocurrencies would make business travel more omniscient because there are no or few intermediaries.
Moreover, mobile use for business travel is becoming more widespread. After the digitization of expense reports, blockchain would be the next step to improve the mobile travel experience. Among other things, cryptocurrencies are just the next logical step to plan a business trip as well as the evolution of virtual payments to simplify the management of expense reports.
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