💻Industry Overview
The last half-decade has witnessed a remarkable surge in cryptocurrency transaction volumes, marking a sixfold increase. This exponential growth signifies a consistent upward trajectory, hinting at an impending global embrace of cryptocurrencies. The evolution of CBDCs (Central Bank Digital Currencies) serves as a testament to the understanding among nations about the imperative need to overhaul our outdated financial systems. Although CBDCs differ significantly from regular cryptocurrencies, primarily in their controlled nature, their development underscores a paradigm shift in progress.
Although CBDCs differ significantly from regular cryptocurrencies, primarily in their controlled nature, their development underscores a paradigm shift in progress. Once various CBDCs achieve global adoption, the convergence of CBDCs with traditional cryptocurrencies is expected within crypto wallets. Currently, the landscape of crypto payments is largely influenced by stablecoins issued by industry behemoths like Circle, Tether, and Paxos, alongside a few region-specific contenders. Notably, stablecoins have demonstrated a 27% higher daily turnover compared to Bitcoin. Throughout 2023, this percentage soared to a staggering 80%, with $18 billion settled in stablecoins versus $10 billion in the top 20 cryptocurrencies combined. The preference for settling payments in stablecoins is rooted in their ease of comprehension, wider acceptance, minimal volatility, and lower fees. Essentially, stablecoins serve as a bridge, embodying the key advantages of both crypto and fiat: acceptability, unit of account, fungibility, and medium of exchange. While smaller businesses are deliberating over adopting crypto for transactions, major brands, particularly within the luxury segment, have wholeheartedly embraced cryptocurrencies. Their rationale is simple yet potent—aligning themselves with the progressive ethos of the crypto sphere and extending a welcome to those who have amassed wealth through crypto investments. This proactive engagement serves as indirect evidence affirming the vast potential of cryptocurrencies and their transactions in the market's future landscape.
However, the adoption curve varies significantly between larger and smaller businesses. While prominent brands have silently integrated crypto payments, medium and small businesses are yet to grasp the benefits of crypto transactions fully. Surveys reveal that only a fraction of global businesses utilize cryptocurrency payment gateways, leaving approximately 18% of potential solvent clients untapped. Alarmingly, over 96% of companies worldwide do not accept crypto payments, underscoring the immense untapped potential within the market. This discrepancy highlights an opportunity for widespread adoption and utilization of crypto payments among businesses of all scales.
Last updated