Even though the cryptocurrency market seems to be going through a bit of a lull at the moment, there’s no denying the fact that the industry has grown
Even though the cryptocurrency market seems to be going through a bit of a lull at the moment, there’s no denying the fact that the industry has grown from strength to strength over the last few years, especially from an adoption perspective.
To this point, a recent study revealed that the number of adults in the United States using digital assets for everyday purchases will increase by 70% by the end of the year when compared to 2021, with the metric rising from 1.08 million to 3.6 million users.
The study’s chief author suggests that as the crypto market’s volatility continues to reduce — thanks to the growing use of stablecoins and central bank digital currencies (CBDCs) — more and more people will look at these offerings as a legitimate means of payment. In fact, by the end of 2022, the research suggests that the total population of U.S adults making use of crypto will scale up to a staggering 33.7 million.
By the end of 2023, this number could potentially climb to 37.2 million, a figure that is quite realistic, especially when considering the fact that investors entering the global crypto fray have nearly doubled across different countries like India, Brazil and Hong Kong within the last 12 months. On the subject, Narek Gevorgian, CEO and founder of CoinStats — a crypto portfolio manager and decentralized finance (DeFi) wallet — told Cointelegraph:
“Crypto is taking a front row seat within the financial mainstream in many cases, not in a zero-sum way versus the existing established market. Millions of unbanked people have access to cryptocurrency transactions from their mobile phones, and due to this being an untapped market, it is hard to observe and measure its growth from the economic lenses we have in place today.”
Crypto adoption in retail primed to grow
Max Krupyshev, CEO of crypto payments processor CoinsPaid, believes that while the aforementioned figure of 3.6 million is quite impressive, it still represents just around 1% of the American population. In his opinion, there is going to be exponential growth in cryptocurrency payments within the next 3-5 years, adding:
“I think we will be able to talk about tens of millions of users in the United States alone by 2025. The American market is a fertile ground for any innovative solutions. Another factor driving crypto’s adoption as a day-to-day transactional currency is that it is becoming increasingly easier to buy, spend these assets with global brands.”
He further stated that when it comes to crypto payments, Asia has the potential to overtake America in the long run since the region as a whole is quite flexible when it comes to accepting novel and upcoming technologies. “We should also pay attention to the growing popularity of cryptocurrencies in African countries. There is a great demand for crypto apps and alternative investment tools offering a low entry threshold,” Krupyshev added.
Brandon Dallman, chief marketing officer for DeFi ecosystem Unizen, told Cointelegraph that for the longest time the retail payments/cross border remittance ecosystem was ruled by a select few players like Western Union, PayPal and Stripe. However, with the rising popularity of crypto in recent years, digital assets have helped people circumvent issues related to middlemen and high fees, as well as the inherent inhibitive red tapism associated with the traditional finance economy. He highlighted:
“Fast blockchain networks are suitable rails for CBDCs like the digital dollar, euro etc. The blockchain that is able to cater to the demand put forward by financial institutions like stock exchanges and clearing houses will win the battle. We are seeing banks of all sizes dip their toes in the water to see how they can start to interact with the new digital world in front of them, driven by a growing fear of being left behind.”
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Maybe not?
Not everyone is convinced about crypto’s growing clout within the retail segment. For example, Ben Caselin, head of research and strategy for cryptocurrency exchange AAX, told Cointelegraph that while we may see the adoption of custodied stablecoins in the near future, it’s highly doubtful that we are headed toward some kind of crypto payments utopia, adding:
“With increased integration, we can expect more vetting and regulation which will not bode well at all for crypto. There might be some venues where particular tokens may be the currency of choice, for example, a Bored Ape-themed restaurant is likely to accept payments in ApeCoin. But, other than that, I’m of the view that ultimately, real world payments and store of value utility will converge on Bitcoin, although this does not discount the continued growth of online and offline micro economies.”
Nonetheless, Caselin said it’s encouraging to see the mainstream move toward a better and more open understanding of what money really is. “If we can see…
cointelegraph.com