What is Payment Autonomy?
Payment autonomy, also known as financial freedom or fiscal independence, is the ability to make payments without relying on a third party. This means users can make transactions without having to trust another person or organization with their money. In cryptocurrency networks such as Bitcoin and Ethereum, payment autonomy is enabled through distributed ledger technology (DLT), which allows for secure and transparent peer-to-peer transactions between two parties without the need of an intermediary. With DLT, users control their own assets directly; no permission from a bank or other third party is required in order for them to send funds.
This type of transaction structure provides many benefits over traditional banking systems like lower fees due to the elimination of intermediaries and faster processing times since transfers are made directly from one user’s wallet to another. Additionally, it allows people who may not have access to traditional banking services—such as those living in developing countries—to take part in digital commerce with greater ease than ever before.
Furthermore, because cryptocurrencies operate on blockchain networks that are decentralized rather than centralized like banks’ databases, they are generally more resilient against hacking attacks and other malicious activities that could negatively affect user finances. This makes it easier for people around the world to store value safely while still being able to move it freely when needed.
