Despite the market fallout, there is plenty of evidence to indicate that cryptocurrencies and blockchain-based platforms will play a key role in the digital payments space moving forward.
The past year has seen the emergence of crypto-friendly challenger banks, the addition of digital assets to PayPal, increased stablecoin usage including the adoption of USDC by Visa, countless new lending opportunities, savings and borrowing products, and a preponderance of innovative solutions for frictionless cross-border transactions – and of course, everyone is awaiting news of Diem.
‘Money is entering a format war’ … and this is creating challenges on numerous fronts for bankers…
… Virtual block by block, a new financial ecosystem is being constructed right alongside the old one. Amazon’s 20 year flatline share price went to the moon when the market worked out that Bezos was up to, even though he had been telling everyone for years, and the rest is history. That was Web 1.0 and a different era – digital money is mainly an innovation developing in widespread decentralized innovation networks and it is developing faster than the speed of life – big banks had better pay attention.
PayPal’s CTO Sri Shivananda believes the technological shift towards blockchain and cryptocurrency can help democratize financial services and bring about better financial inclusion. For the consumer, PayPal, which was co-founded by Elon Musk, represents a familiar, trustworthy service that could act as a gateway to the world of digital assets.