Can crypto become a mainstream payment method?

Digital currencies have blown up in recent years. Once seen just as a form of currency, they’re now being used in all sorts of new ways.

Cryptocurrencies are often linked to trading because of their volatility and success stories like Bitcoin. But can crypto become a regular payment method? What needs to happen for that to occur?

Several industry leaders have expressed their thoughts.

Proving Crypto's Value

Mukarram Dhorajiwala from Occams Advisory says Bitcoin is on its way to becoming a trusted payment method.

“Before any currency can be used for everyday transactions, it has to be seen as a store of value. Bitcoin has proven itself here since 2009. As more people use Bitcoin, it will naturally become a medium of exchange. Integrating Bitcoin wallets into Apple and Android could really push mainstream adoption.”

Overcoming Adoption Barriers

Alejandro del Rio from Paymentology points out the barriers stopping crypto from becoming mainstream.

“Cryptocurrencies could revolutionise cross-border transactions and offer access to stablecoins. But they’re not yet part of daily payment routines because connecting them to traditional payment networks is slow and unreliable. Simplifying the exchange and withdrawal process is crucial.”

Challenges of Volatility and Regulation

Cristiano Ventricelli from Moody’s Ratings highlights the issues of volatility and regulation.

“Cryptocurrencies like BTC and ETH are too volatile for everyday use. Stablecoins are getting more attention from payment providers, but unclear regulations and tech risks slow down their adoption.”

Mainstream Adoption

Scott Lieberman from Touchdown Money says the demand for crypto payments is currently low.

“A 2021 Oliver Wyman survey showed less than one percent of Americans plan to use crypto for payments. For crypto to replace cash and cards, it needs to be trusted, stable, and have lower transaction fees.”

Steps Toward Acceptance

Bakhrom Saydulloev from Mercuryo outlines what’s needed for broader acceptance.

“Improving user experience, fostering institutional adoption, and integrating blockchain into financial systems are crucial. Partnering with major financial institutions and addressing misconceptions about crypto are also key steps.”

Tackling Adoption Challenges

Micah Kershner from Paysafe identifies three areas needing improvement: users, merchants, and tax officials.

“Users need clear benefits over traditional methods. Merchants need enough demand and easy integration into existing systems. Transactions also shouldn’t trigger taxable events, especially in markets without capital gains taxes.”

Building Trust in Crypto

Scott Major from Transact365 emphasises the importance of trust.

“Trust and user experience are essential. Integrating with traditional payment technologies and reducing fees can boost adoption. A user-friendly experience similar to Apple Pay or Google Pay is also critical.”

Merchant Adoption of Crypto

Bryan Feng from Unlimit Crypto discusses what’s needed for merchant adoption.

“Payment methods need to be accessible, quick, secure, and affordable. Simplifying the pre-purchase process and integrating crypto-focused APIs will help streamline payments and encourage broader adoption.”

Conclusion

The road to mainstream crypto adoption is challenging. Overcoming barriers, improving user experience, and fostering collaboration are key steps forward according to industry leaders.