Convenience often takes precedence over efficiency when it comes to financial transactions. This is why not everyone has embraced cryptocurrency, despite its numerous benefits and lower costs.
Lugano, a city in Switzerland, serves as a prime example of the potential of cryptocurrency adoption. Over 15% of its residents use the LVGA stablecoin on a daily basis to pay bills, make purchases, and access online services. All it takes is a simple click to begin utilizing digital assets, which offer unparalleled improvements compared to traditional finance.
In many developing countries, access to financial services is still limited to a privileged few. While only 6% of adults in the United States don’t have a bank account, this number exceeds 52% in Africa. Cryptocurrency has yet to achieve the same level of importance as traditional payment systems for household transactions, but acceptance is steadily growing.
Crypto credit cards, issued by global payment companies and trading platforms, are a prime example of this shift. Major stores and services like Wikipedia, Microsoft, and Google already accept payments in Bitcoin. Time Magazine has partnered with Crypto.com to streamline digital asset payments for subscriptions. Even taxes can be paid using cryptocurrency in cities like Lugano, where residents simply scan a QR code on their bill and choose a digital wallet for payment.
Lugano has gone a step further by collaborating with Bitfinex to enable over 400 merchants to accept digital assets. Their goal is to expand this number to 2,000 stores in the coming years. Companies like Coinbase offer ready-made solutions for taxpayers, helping them report capital gains or losses to the IRS.
While the growth of crypto is not without its challenges, the future looks promising. Juniper Research estimates that the global usage rate of digital wallets will reach 75% by 2025. A study conducted in 2022 showed that 36% of respondents were open to receiving their salary in cryptocurrencies. These figures continue to rise, and supply will have to meet the growing demand.
The approval of spot Bitcoin ETFs in the U.S. in January marked a significant milestone in the integration of crypto with the financial industry. This has instilled confidence in ordinary users, who now see digital assets as a natural part of progress. The participation of institutional players like MicroStrategy, Square, and Tesla adds credibility and paves the way for broader adoption of blockchain-related services.
The crypto industry continues to expand its range of services, products, payment methods, and technologies. While it may not replace financial institutions overnight, there may come a time when seamless transactions and innovative payment solutions make them indispensable. Crypto regulations can foster a stronger symbiotic relationship between exchanges and banks, with the possibility of arranging loans in altcoins from traditional banks. Decentralized finance platforms like Polygon, Archblock, and Curve Finance can also bypass financial intermediaries and offer high-quality services with low fees.
The history of financial instruments has shown that the use of new technology can be unexpectedly transformative. The trends of regulatory change and adoption indicate the increasing role of crypto in everyday payments, pushing the world towards more advanced financial systems.
Gracy Chen, the managing director of Bitget, a crypto derivatives exchange, oversees market expansion, business strategy, and corporate development. She has held executive positions at various companies and is an early investor in BitKeep. She graduated from the National University of Singapore and is currently pursuing an MBA degree at the Massachusetts Institute of Technology.
It’s important to note that this article is for general information purposes only and should not be considered legal or investment advice. The views expressed are solely those of the author and do not necessarily reflect the opinions of Cointelegraph.