Most rugby fans will have heard of cryptocurrencies by now. A cryptocurrency is a virtual digital currency that can be traded or used to buy and sell goods and services but does not have any physical form. Cryptocurrency coins are just bits of information on a computer or online – not actual coins at all. To all intents and purposes, they can be used just like “real” money: indeed, by most definitions, cryptocurrencies are real money.
In most cases, cryptocurrencies are international currencies and are not tied to the economy of any particular state; nor do they reflect the value of a real-world commodity, such as gold. Cryptocurrencies do increase (and can decrease) in value, but this is generally due to intrinsic demand and availability, rather than being directly tied to any external factors like the value of the pound or the stock exchange. For investors, this makes them a useful alternative to cash or shares.
Bitcoin boom
The first, most well-known and most widely-used cryptocurrency is bitcoin. Bitcoin was launched in 2009, becoming more widely used from 2011 onwards. Since then, the currency has grown massively in value compared to the dollar or pound. Although there have been some spectacular crashes along the way, a single bitcoin unit is worth several hundred times what it was worth ten years ago, so it has proved to be an extremely sound long-term investment.
Investors trade cryptocurrency online using platforms like the libra method software, which takes its name from the proposed new cryptocurrency to be launched by Facebook, the Libra. The fact that major corporations like Facebook are now getting involved with the cryptocurrency market is one of the reasons why rugby fans really need to be aware of this phenomenon.
Sporting deals
The social media giant isn’t the only major body that sees cryptocurrencies as the future. In football, Premier League clubs have considered paying top players using bitcoin, as well as looking at sponsorship deals. If this takes off, there’s no reason why the top clubs in rugby league shouldn’t follow suit.
Once rugby clubs have set up virtual wallets to accept and receive payments in bitcoin and other cryptocurrencies then they can use these for other purposes besides paying players. Tickets for games, merchandise and other offers could be made available to fans paying in bitcoin. Although we won’t see conventional methods of payment disappearing just yet, it’s not unlikely that bitcoin users would receive exclusive promotional offers or discounts to encourage take-up of the cryptocurrency.
Going global
The international nature of cryptocurrencies makes their use ideal in a global sport like rugby. There’s no need to be concerned about exchange rates, whether a club is negotiating to buy a player from another country, or whether a fan from the other side of the world wants to buy a club T-shirt. The fact that payments are instant and easily verifiable is also a major consideration. Although many might bemoan any change in rugby, it is inevitable. Some believe that, one day, cryptocurrencies will replace cash and credit altogether. Whether one sees this as a good thing or not, it’s surely best to be prepared.
Charities on board
Last year, the international charity UNICEF launched a fund enabling it to receive cryptocurrency donations, specifically, either ethereum or bitcoin. The initial donations came from the Ethereum Foundation, and the currency remains bitcoin’s closest rival in the cryptocurrency world. UNICEF has been working extensively with blockchain technology, the decentralised online ledger system that underpins most cryptocurrency transactions. The charity co-leads the UN Innovation Network that is researching blockchain alongside other emerging technologies.
The relevance of this to rugby is that UNICEF is the official charity partner of the 2021 Rugby World Cup. The tournament, which will see the Men’s, Women’s and Wheelchair World Cups staged together for the first time, is to be held in the UK and will look to raise funds and awareness for the charity. Fans and clubs may find that using cryptocurrencies is the easiest and most convenient way to support this endeavour.
Held to account
One other great advantage of cryptocurrencies like bitcoin is their transparency. Because transactions are recorded on blockchain and the information is publicly held in a multitude of locations, it becomes impossible to alter or fabricate details after the event. The decentralised nature of blockchain and cryptocurrency is one of its greatest strengths. In the case of rugby clubs using cryptocurrency to pay for players, it means that payments are both immediate and open: something that will become increasingly important as sports seek to become more transparent and accountable.
With major corporations, charities and sports clubs all looking to take on cryptocurrencies, the rugby world simply can’t afford to be left behind. Digital currencies are a contemporary payment solution that will become more popular and necessary. The sooner rugby gets on board, the better.
