Recently, cryptocurrencies have been offered as an alternative payment method for many products such as cars, furniture, electronics, and even food and drink.
Cryptocurrencies are transactions that have been verified by a decentralised system using cryptography and records of those transactions are maintained
The value of cryptocurrencies has not been able to replicate the same level of stability that is needed to function as an effective medium of exchange. However, this does not stop companies from offering it as a method of payment.
Big brands such as Tesla, Rolls Royce, Ferrari, and Volkswagen have all accepted crypto instead of the more common cash, card, or bank transfer, and more recently, some car retailers have started to offer crypto in exchange for second-hand cars.
But what does this mean for consumer rights?
The transactions are permanent and final which makes them virtually impossible to reverse if needed.
Crypto is a virtually unregulated payment method and does not have any statutory backing, unlike the S75 Consumer Credit Act 1974. Consumers will be unable to request an “undo” on the transaction and rely entirely on the seller to willingly provide a refund.
On the other hand, this also poses risks to those who accept crypto, as the cash equivalent of £10,000 one day may be worth £2,000 the next!
It is also extremely important that dealers refund the amount to the correct “wallet”, as any transactions for the wrong amount or to the wrong “wallet”, are not recoverable.
Despite the challenges crypto faces, we could be seeing an increase in these transactions in the future as more day-to-day tasks are digitalised.
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