Why hasn't crypto reached its potential? And when will it go mainstream? We explore how fiat payments can help crypto companies stand out from the crowd, while enhancing their users' experience
Cryptocurrency, as it stands, has grown into a widely traded asset class. People buy it and sell it, but it has not reached its potential as currency-despite its name.
There are many evangelists that see crypto both as a currency and the future of money. Some of these zealots have, in the past, done cryptocurrency harm in their ardour, but as the market has matured, so has the messaging. Serious people are making solid and believable predictions on how cryptocurrency will change the nature of money and commerce.
But, a question remains, when will crypto reach its potential?
Coinbase in its look ahead sees the need for better scalability before crypto will truly become a currency, but predicts that many problems will be overcome by governments getting involved.
As such, Central Bank Digital Currencies (CBDCs) are critical to legitimise cryptocurrencies - trusted institutions will lend their authority to them and facilitate this move to the mainstream. However, crypto-to-crypto exchanges still see the need for fiat-to-crypto- exchanges. And CBDCs are still years from becoming an everyday reality.
Cointelegraph is more bullish. It sees the potential for crypto to replace fiat currencies. But that future is, it admits, “a long way off”.
One could always look to The Simpsons, a source that has been uncanny in predicting future events. According to Homer & co, cryptocurrencies will be mainstream in no more than 15 years.
Why ﬁat payments are key to usability and differentiation
If a crypto business has a first-class crypto exchange, and fiat payments systems that are average at best, it will be judged on the latter rather than the former.
Crypto businesses won’t win business based on how good the crypto side of their offering is, which is highly commoditised. They’ll be won over by ease of access and the user experience.
This is where crypto businesses can differentiate and better compete.
And it is not enough to have good access to fiat payments today. Fiat currency payment technology isn’t going to stay still while crypto technology marches on. Payment technology must be updated continuously between now and when cryptocurrency truly becomes a currency. If a crypto business ignores this, it risks becoming a business of two halves: one future-looking, one stuck in the past.
To avoid a Jekyll and Hyde crypto business, and ensure its fiat offering creates differentiation and improve sales.
Want to learn more about how crypto firms can use fiat payments to drive growth?