Ethereum co-founder Vitalik Buterin recently said that people still don’t understand the superiority of crypto payments. They are not widely used yet, and fiat is still being considered a better payment medium. Vitalik then gave the example of easy international payments using cryptocurrencies. This is what makes crypto payments different and better. You can send money anywhere, to anyone, anytime, and without the involvement of a 3rd party.
Vitalik Buterin talks about the benefits of crypto payments
One of the major reasons crypto enthusiasts like to use crypto as a payment medium is the lack of a 3rd party. If you use a bank to send money to anyone, they have complete control over your funds and transaction. For some reason, if they deem the transaction unsafe, they can stop the transaction and freeze your account. However, in the case of crypto payments, there is no censorship. But that’s not all, as crypto payments are, in general, much easier to use, especially for cross-border, international, and charity payments. One of the most recent examples of this is the $54 million raised by Ukraine during the war via crypto donations.
Even though crypto payments volume is nowhere near fiat, the adoption is happening, and we are seeing a gradual increase in businesses accepting crypto payments. This is all thanks to Visa and Mastercard, who are proactively enabling crypto payments in their merchant stores by partnering with crypto platforms.
You may also like to read Binance and Master card to collaborate to bring crypto payment systems at 90 million stores.
A recent survey shows that the higher the income of a business, the more they are inclined toward accepting crypto payments. For example, 85% of businesses with income over $1B are planning to accept crypto and bring in more customers.
The problem
While it is true that crypto payments offer a lot of things that traditional payment methods lack but there are still some major problems. The first is volatility. If you look at Bitcoin’s price over the last 1-2weeks or at any crypto for that matter, the price has fluctuated massively. Secondly, throughput is also an issue as the most popular cryptocurrencies only support 5 TPS (BTC) and 29.3 TPS (ETH). Communities are finding solutions to this; for example, we have the bitcoin lightning network, but the adoption is still lacking.
What are your thoughts as Vitalik Buterin says people still don’t understand crypto payments? Let us know in the comments below. And, if you found our content informative, share it with your friends.
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