Some of the most influential companies like Visa and Mastercard are helping people make cryptocurrencies an important part of their finances. As crypto continues to advance further and further into the mainstream, more of these companies may step in and get involved. This is a bullish signal for cryptocurrency investors because the more support and enablement cryptocurrencies receive from major corporations, the more cryptocurrencies could grow in price due to an increase in demand.
Cryptos Competing with USD for Payments
Companies, including Visa and Mastercard, seem to be in the process of allowing their customers to make transactions with cryptocurrencies. Thanks to immediate point-of-sale (POS) conversions to USD, this means their customers can keep crypto on their cards while simultaneously having it available as a payment method anywhere these cards are accepted. More specifically, Visa has added cryptocurrencies into its settlement platform. They now accept USD Coin, a stablecoin, as a form of payment. Mastercard is also gearing up to facilitate payments with stablecoins. These types of currencies are pegged to the value of assets like the U.S. dollar or Euro.
The connection of stablecoins to other assets helps to ensure the values of stablecoins have as little volatility as possible, and consumers can use and exchange cryptocurrencies the same way they would traditional currencies. On the other side of the spectrum, some of the most forward-thinking companies are starting to allow payments directly with Bitcoin. Dozens of large companies including Microsoft, PayPal, Overstock, Whole Foods, Etsy, and Home Depot allow their users to pay with Bitcoin. Also, Apple Pay has recently added the option to pay directly in Bitcoin using BitPay, prepaid cryptocurrency cards.
On the note of BitPay, debit cards are one of many ways cryptocurrencies can transform the way people think of finances. Cryptocurrency debit cards began on the fringes a few years ago, with a few small companies arranging agreements with card issuers. Today, companies like Coinbase, BitPay, BlockFi, and Binance have their debit cards. They offer unique benefits, like earning cryptocurrencies instead of cash based on transactions. Cardholders deposit cryptocurrencies into debit accounts, and the cardholders are then able to make transactions. When they make a purchase, their cryptocurrency is automatically turned into cash and is sent to the other party. All this usage of cryptocurrencies could cause their prices to climb as time goes on.
The Future of Finance May Be Crypto
While payments may be one of the biggest frontiers in crypto adoption, they certainly may not be the last. As everyday users acclimate to paying in cryptocurrencies, finance in the crypto world has already leapfrogged ahead. A glimpse into DeFi, or Decentralized Finance, shows a world full of lending, borrowing, market-making, and even insurance all developing at breakneck speed via blockchain programs.
These protocols, powered by smart contracts, require no human middleman to facilitate transactions or arrangements between parties. They are already running with over $78 billion in total value locked. Users are already finding ways to put their money to work that offer high interest rates for savers, low rates for borrowers, and a host of other opportunities, like providing liquidity and earning rewards. Payments are a natural entry point as finance shifts to digital form, and DeFi could offer an endless array of potential.
With services that are more efficient, more accessible, and less prone to corruption by design than its traditional counterpart, DeFi is growing at an incredible clip and could continue to make its way into mainstream products as a natural part of the shift to digital finance.
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While thousands of crypto enthusiasts eagerly wait for their crypto debit cards and other crypto-based financial products, the era of cryptocurrency finances could be in the beginning stages. If you’re new to crypto, you may be wondering, “should I buy Bitcoin?” and if you’re looking to move forward then perhaps, you’ll consider investing in Bitcoin with a tax-advantaged IRA. At Bitcoin IRA, we are happy to be the first cryptocurrency IRA platform to enable people to retire with the help of Bitcoin and other cryptocurrencies like Ethereum, Litecoin, and more. Interested in making cryptocurrencies a part of your future? You can sign up for an IRA with us today.
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