Can BTC become a global means of payment?

In its 15 years of existence, BTC has played many roles, from a source of speculation to a hedge against inflation, but today there are growing signs that it is moving closer to its intended goal: to be a means of payment, writes Reuters.

According to Richard Miko, CEO of Banxa, a payment infrastructure provider, Bitcoin is evolving at a rapid pace in terms of a crypto payment system, even if it’s not noticeable due to volatility in the broader market.

BitPay's BTC transaction volumes were up 18% last year compared to 2021, and CoinsPaid reported that BTC transaction volumes were up 32% year-on-year in the fourth quarter of 2022.

The question remains: why until now BTC has not been able to fulfill the dream of its inventor Satoshi Nakamoto and become a peer-to-peer electronic cash system? But when you look at factors such as price volatility, the slow processing speed of BTC transactions, and constant regulatory uncertainty, it becomes clear that cryptocurrencies are too cumbersome and inconvenient means of payment. So far, few sellers value their goods or services in cryptocurrencies.

But at the same time, BTC and other digital assets have a number of advantages: BTC offers lower transaction costs and faster processing than traditional cash, and other cryptocurrencies, including stablecoins that are pegged to the value of traditional currencies, have become popular options. cross-border payments, money transfers, and are already active in emerging markets where the value of local currencies has fallen sharply.

For the adoption of cryptocurrencies as a means of payment, a number of questions need to be answered: are blockchains ready to cope with the stress of processing thousands of transactions at once and without a simultaneous surge in transaction fees.

Traditional payment company like Visa (NYSE:NYSE:V) this month signed a deal with crypto firm WireX to directly issue crypto-backed debit and prepaid cards.