As the adoption rate for cryptocurrencies continues to soar, a recent survey carried out by Innopay, an expert in digital transactions, and Paypers, an analysis provider has shown that cryptocurrencies will see more use cases.
According to the survey conducted between June and September 2022, 88% of the respondents, most banks, vendors, merchants, and payment institutions believe crypto will play an essential role in the current payment infrastructure.
Interestingly, 24% of these firms, which represents a fraction of the sample space, are already offering crypto-related products.
A majority of the respondents representing 53% have already identified crypto-related opportunities and are already making attempts through research to pursue these opportunities. 43% are still consulting with customers while another 26% are preparing to enter the market.
In comparison to the current payment infrastructure, these firms turn to crypto chiefly because it allows innovation while presenting opportunities for new business models. Also, security, transaction speed, and affordability were other factors considered. In some specific cases, crypto provides more financial inclusion and more liquidity options for merchants.
Hindrances to Mass Adoption of Cryptocurrency
Unsurprisingly, uncertainties regarding crypto regulations and KYC challenges are the chief reasons why many of the respondents are yet to get on board. Both reasons have been a clog in the wheel for the nascent industry as many firms still hold back due to unclarity in crypto laws.
However with the renewed interest of regulators in the sector after the collapse of platforms like Celsius, Voyager, and most recently FTX, this will most likely be improved upon. For example, the Market in Crypto Asset (MiCA) bill, a bill that regulates the crypto industry for European countries, is already in the works.
Additionally, President Joe Biden is leading a charge for global game-changing Bitcoin and crypto rules and El Salvador has doubled down on its push for crypto asset regulations in the region after one year of adopting Bitcoin as a legal tender.
Recall that some policy experts of the EU have said that the anticipated MiCA legislation would prevent similar occurrences like that of FTX including its effect on their customers.