Digital currencies have been on a steep trajectory since they first burst onto the scene, and we are seeing constant metamorphosis in their application, scope, and configuration. For instance, El Salvador adopting Bitcoin as legal tender raised a lot of attention. These strings of announcements are pushing crypto closer to mainstream adoption, and as the popularity increases, so does their acceptance and price.
The question we really need to consider is not whether mainstream adoption will become reality, because it will. Rather, we need to look at how we want cryptocurrencies to fit into the broader financial ecosystem. We expect them to not replace conventional payment methods but sit alongside them. It’s also important to consider their co-existence with CBDCs. Rather than assuming crypto and CBDCs cannot work together, we need to realise that adopting CBDCs can positively change perceptions towards the wider crypto industry, encouraging retail and institutional investors to see cryptocurrencies as a viable payment option.
There is a clear hunger for crypto as a means of payment — globally, from business owners. Ultimately, the enabler to mass adoption will be crypto’s integration into existing payment infrastructures and acceptance from the crypto community.