PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Cryptocurrencies and the Payments Ecosystem

Steve Murphy by Steve Murphy
April 22, 2021
in Analysts Coverage, B2B, Cross-border Payments, Cryptocurrency, Partnerships
0
Are Cryptocurrencies Going to Upset the Networks Any Time Soon? Nah.

Are Cryptocurrencies Going to Upset the Networks Any Time Soon? Nah.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Yet another piece on the hot topic of cryptocurrencies and how exactly they fit into payments ecosystem in the long run. This particular posting happens to be in Forbes and headlines the cross-border aspect of the conversation, which we just commented upon in these pages a couple of days ago.  

The author in this case is an entrepreneur and cross-border payments specialist.  The newly public Coinbase is one reason crypto is popping up daily on the radar and so the ‘asset versus payments practicality’ question is a logical one for review. And as we have stated before, not all cryptos are the same. In this case, the authors stick to the decentralized cryptos as the central point of comparison.

‘Entering the market with a $76bn valuation, Coinbase is the largest cryptocurrency exchange in the US, and a key proxy for the growing success of crypto more widely. When it was founded in 2012, such digital currencies were predominantly being used for illicit online payments, but now currencies such as bitcoin and etherium have become increasingly popular trading assets for institutional investors….However, crypto’s use is increasingly extending to the payments world, where some are extolling its benefits for cross-border transactions, arguing that it does not require conventional currency conversions, bringing speed and cost benefits….“Trading and speculation were the first major use cases to take off in cryptocurrency, just like people rushed to buy domain names in the early days of the internet. But we’re now seeing cryptocurrency evolve into something much more important,” said Coinbase CEO Brian Armstrong in a letter included in the company’s filing documents prior to its public listing….“People are using cryptocurrency to earn, spend, save, stake, borrow, lend, vote and perform many other types of economic activity.” ‘

As one looks at what has occurred during 2020, with the increasing facilitation of crypto utility through the card networks, Paypal and so forth, it is really still about conversion back to fiat currency and not the purist vision of decentralized cryptos (i.e.; bitcoin) as the actual currency of value.

Therein lies the issue with cryptos as a means of exchange, especially in B2B uses and even more so as a cross-border vehicle.  Remittances are one thing, but mainstreaming of cryptos for business is quite another. There is still the conversion issue.  Worth a few minutes to read.

‘Notably, such developments are not confined to consumer-facing businesses. Some B2B cross-border payments companies have also began to make moves in the space, citing interest from customers for access to the technology….One such company is UK-based Equals Group, which recently added support for cryptocurrencies in global payments through a partnership with Tap. And for CEO Ian Strafford-Taylor, adding support for cryptocurrency doesn’t represent an entry into a brave new world so much as adding support for “an exotic” in much the same way as for an unusual fiat currency….“We don’t take positions, we’re not traders, we’re flow enablers, and there’s a demand for this stuff,” he says. “We should try and provide it and we should understand it.”…However, not all payment companies are so keen. Adyen CEO Pieter van der Does, for example, told CNBC that it had no plans to add crypto payment methods, arguing that the volatility of cryptocurrencies such as bitcoin made it “more of an investment asset than a payment method”. ‘

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

Tags: B2BBitcoinCoinbaseCross-Border PaymentsCryptocurrenciesPartnershipsPayPal
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Payoneer eBook: