3 - 4 minute read
The world of cryptocurrency is constantly evolving, with new opportunities and challenges emerging daily. In a recent episode of Hashing It Out, Elisha Owusu Akyaw spoke with Ran Goldi, VP of payments at Fireblocks, to explore the topic of crypto payments. Specifically, the conversation centered around the potential for payments to drive crypto adoption in the coming years.
One key hurdle to adoption, according to Goldi, is the current issues within the banking sector in the United States. With crypto-friendly banks, such as Silvergate and SVB, shutting down operations, firms are becoming increasingly hesitant to embrace blockchain technology and stablecoins for moving money globally. However, Goldi remains optimistic that 2023 will see increased adoption of crypto payments, particularly among big names like PayPal, Checkout, and Stripe.
Goldi emphasized that one of the biggest advantages of blockchain payments is speed. Cross-border payments that would traditionally take three to four days to settle can now be conducted instantaneously, thanks to the use of stablecoins and other blockchain-based payment systems. However, Goldi also acknowledged that there are still uncertainties and challenges that need to be addressed before crypto payments can become mainstream. “It’s a chicken and egg problem,” said Goldi. “Merchants won’t accept crypto payments until more consumers adopt them, and consumers won’t adopt them until more merchants accept them.”
“We had one company that was working with Silvergate, and Silvergate got shut down. We immediately gave them an intro to SVB, and then SVB got shut down, and then in the evening, we said don’t worry, we will introduce Signature next week, and by next week there was no Signature.”
Despite these challenges, Goldi believes that the future of crypto payments is bright. He argued that as more institutions embrace blockchain technology for cross-border payments, others will follow suit. “The financial rails between institutions around the world will evolve,” said Goldi. “And most firms will have a leg in blockchain to move money faster.”
The Bottom Line
The potential for crypto payments to drive broader adoption of cryptocurrency is real. As more big names like PayPal and Stripe enter the industry, it’s likely that others will follow suit. However, there are still hurdles to overcome, and the banking sector remains one of the biggest uncertainties. With that in mind, traders should keep a close eye on developments within the banking sector, as well as on new payment solutions and partnerships between traditional financial institutions and crypto startups.