For many years now, people have been expecting the use of cryptocurrency for buying and selling on several platforms but that appears not to be the case. Some of the reasons why this has remained are being released here.
Who are the users of cryptocurrency today?
In general, cryptocurrencies are used only where they are accepted and many are still yet to accept it. Most of the places where crypto is being used today are where illegal products are sold. Two of the most popular cryptocurrency exchanges, BitPay and Coinbase, are still very far behind MasterCard and Visa and with that, it is clear that the use of crypto for payments is not yet near.
The Challenge with crypto payments
The truth is that not many know what cryptocurrency is all about. Those who know about it believe that it is risky and complicated. Peko Wan, an officer at Pundi X, has this to say about it:
“For the mainstream, the general perception toward crypto are ‘complicated to use’ or ‘risky to own cryptos.’”
Although some merchants add the crypto payment option for clients to use, they still don’t get so many of the clients responding to it and even some merchants decide to steer clear to avoid being victims of money laundry.
Instability of Crypto Coins
Another reason why crypto payments have failed to kick off in a long time is the high volatility of the currencies which has made many people to desist from storing them for the fear of losing their money. Even the ones that seem stable have this problem so merchants have no other option than to prefer traditional currencies.
Notwithstanding, some important personalities in the cryptoworld such as Marszalek and Claudio Barros are of the opinion that adding stable coins can help minimize this problem. Marszalek believes that by the time Crypto.com releases its stablecoin, there will be more people to accept crypto payments.
Here is what Claudio Barros thinks about it: “Any improvement in stability of coins will be a benefit, we need a range from pegged coins to super volatile coins to cater for different needs.”
Will it end well after all?
Although Crypto is not yet accepted by all, it is known to be better than many other e-currencies because of their performance and privacy.
Crypto can be used anywhere and it knows no boundary. It is suitable in places where there are strict cashless policies. This applies to both developed and developing nations.
Wan has noticed this about developing countries:
“For the past two years, we also observed that in the countries where the local currency has decreased over time, people are more aware of crypto or interested in having cryptos.”
Marszalek of Crypto.com believes that things will improve for crypto payments between now and the next five years.