Cryptocurrencies have been entering the world of mainstream finance step by step over the past few years. Bitcoin has been particularly successful in this regard as the first digital currency to hit the market and the blueprint on which all the altcoins that succeeded it are based. Some countries, such as El Salvador, have also adopted it as legal tender to moderate success. Analysts, however, predict that as time passes and technology changes, the world is much more likely to develop new space for cryptocurrencies as well. In some instances, it’s possible that the blockchain will create this space, as researchers estimate that decentralized ledger technology will impact industries on a wide scale.
Businesses and financial authorities have begun recognizing cryptocurrencies as a valid method of transaction and have started incorporating it into their payment options, with customers now able to pay for their shopping in digital coins if they choose to do so. The increased adoption will unquestionably leave its mark on the Bitcoin price. In which manner, however, is yet to be determined, as the change is relatively new. Now, one of the latest developments in the BTC world, following the climb the coin recorded since the beginning of 2023, is that crypto payment platforms have plans to expand further across the globe, namely in the Asia-Pacific region and the United Kingdom.
Extending services
Most cryptocurrency exchanges and payment platforms have been on an ascending path over the recent years, as an ever-growing number of customers are discovering the accessibility that cryptocurrencies provide. Moreover, some have become convinced that cryptocurrencies can act as a hedge against inflation, particularly in the context of the complex and often uncomfortable financial climate of 2022.
For this reason, platforms have seen it as an opportunity to expand their services to a growing number of customers and provide them with the necessary tech to power their transactions. However, traditional providers and banks are also beginning to take this step. Some are determined to connect the world of digital currencies with their existing network of banks, financial institutions and merchants. This move represents a change in policy, as digital assets and regular money have generally been separate from one another.
The advantages
So, what are the possible advantages of this change? For starters, it means that customers will find their payments much more accessible. By using the same financial services as banks, transactions become much more seamless, and customers have the option to share their crypto balance with the millions of vendors that accept payments from specific companies. And while digital money is still regarded suspiciously by some merchants, the large, multinational service providers are universally seen as trustworthy.
The providers also have the added benefit of providing resources to the crypto environment, particularly of the type that could be used to develop an app and card that can provide the necessary security requirements for clients. Cryptocurrencies have a double reputation when it comes to security. On one side, the blockchain is recognized as much safer than analogous systems. Being entirely decentralized, there’s no main server that a hacker can access in order to access vulnerable information. Everyone with access to the same blockchain network has access to an identical copy of the system. Nobody has a complete monopoly over all of the data, which is very important for preventing data breaches.
In order to crack the blockchain, a hacker would have to alter over 51% of the blockchain copies. Given the massive amount of data stored in the network, this feat would be virtually impossible. However, others have expressed concerns about the safety of cryptocurrency trading. For starters, digital wallets are notoriously recognized as one of the items most frequently targeted by hackers. This is because they are often tricky to set up, and most investors don’t have the necessary know-how when securing their own. If you forget your password or share it with someone else and they access your account, your Bitcoin is typically lost forever.
Working with well-known service providers can help patch these vulnerabilities. In turn, the blockchain could help solve the weak points of traditional systems. Some companies have already taken steps in this direction across the world. For example, a no-limit Bitcoin card was launched in the United Arab Emirates back in 2022. While the UK has made up a large portion of the customers using these crypto-based services, platforms withdrew from the FCA’s registration regime, and so customers from the United Kingdom have since performed their transactions with the help of a Croatia-based subsidiary.
However, given the change of plans, this won’t be the case for much longer.
Intensive funding
In order to achieve these goals, the platforms require an increase in their funding, something that has been happening gradually over the years. A well-known crypto transaction provider has raised over $4 million from a crowdfunding round, exceeding its initial target by over 370%. Indeed, the numbers were so favorable that the effort closed 15 days earlier than planned, as the designated amount had been met many times.
Within the first ninety minutes, over $1 million had already been amassed from the joint efforts of roughly 7,000 investors. This extensive campaign was designed primarily as a means to solidify the expansion plans of the platform. The aim is to release a multi-currency card that can operate across different jurisdictions. Product overhauls are also in the making, with five new currencies expected to arrive to Eastern European customers.
The bottom line
2022 has been a challenging year for digital assets, but the new year has started off rather well. While investors have been really worried before, many have begun to see a glimmer of hope beginning to light up the cryptocurrency market. This isn’t only due to the rising prices but also because cryptocurrencies continue to remain relevant despite the pointed periods of disruption. This is mainly due to the fact that their scope extends far beyond the world of digital money. And that is the reason why they will always be a part of many portfolios.
