Source: Cointelegraph
Original: “Cryptocurrency Unlocks a Borderless World, Merchants Hold the Key to the Future”

Author: Anil Öncü, CEO of Bitpace.

Over the past decade, digital payments have evolved from a niche convenience to a pillar of global commerce. Instant transfers and contactless payments have become the norm, reflecting a universal demand in the global market for speed, efficiency, and accessibility.

As industry giants like Visa continue to roll out innovative solutions, digital wallets are expected to account for over 50% of e-commerce transactions by next year. The notion of traditional finance being at odds with cryptocurrency is gradually fading, paving the way for hybrid solutions that serve global financial inclusion.

At the core of this transformation, two significant trends are developing in parallel. With the global retail market for blockchain technology expected to reach $26 billion by 2033, advancements in cross-border transactions are closely linked to the increasing adoption of cryptocurrency by merchants.

The demand for more efficient cross-border payment solutions continues to rise, with the sector projected to reach a valuation of $56 trillion by 2030. Meanwhile, the proportion of global merchants adopting cryptocurrency is steadily increasing. Currently, about 30,000 merchants accept Bitcoin (BTC) payments. This number is expected to keep rising, with the adoption rates of other trusted cryptocurrencies also on the rise.

As more businesses embrace cryptocurrency, its practical value will significantly increase. The widespread adoption of crypto technology will accelerate and strengthen the necessary reforms in traditional banking infrastructure, which caused $3.8 billion in cross-border transaction failures in 2023 alone.

In a context where consumers are constantly seeking faster, cheaper, and more convenient payment options, a mutually reinforcing chain reaction is reshaping the new landscape of global commerce.

Merchants are beginning to accept and introduce cryptocurrency not just to keep up with trends or offer customers a fresh experience; crypto technology is eliminating long-standing barriers such as high transaction fees and slow settlement cycles.

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For small and medium-sized enterprises (SMEs) in particular, eliminating intermediaries can radically transform their trade models. Cross-border operations that were once unfeasible can now become significant and productive business branches. With cryptocurrency, SMEs can reach international customer bases without sacrificing profit margins.

What does this result in? A virtuous cycle: lower costs attract more customers, which in turn encourages more merchants to adopt crypto payment services. Recent data shows that 93% of global merchants accepting cryptocurrency report a positive impact on customer engagement. This choice is becoming self-evident.

Merchant adoption of cryptocurrency not only helps address existing challenges in the payment sector but also significantly enhances the practical value of digital currencies themselves. The more merchants that accept cryptocurrency, the stronger the utility of these assets in everyday use cases, particularly evident in cross-border trade.

For example, a buyer in Mexico can seamlessly purchase products from a European merchant using cryptocurrency for remittances, without the need for currency exchange. This creates a coherent and reliable ecosystem for both merchants and consumers. As this cycle continues to repeat, the global practical value of cryptocurrency rises, making it an increasingly viable payment option.

In 2023, out of the global $190.1 trillion in cross-border transactions, an estimated $656 billion belonged to remittance transactions. This figure primarily comes from laborers sending money back to families in emerging market countries. Notably, in Venezuela alone, 9% of the $5.4 billion in remittances that year was completed through cryptocurrency.

Unsurprisingly, cryptocurrency adoption rates in emerging markets often exceed those in developed economies, where it is estimated that over 2 billion people lack adequate access to traditional financial services. The high fees and significant delays associated with traditional remittance services are driving people to turn to cryptocurrency to avoid these pain points.

Consumers and businesses are increasingly recognizing that cryptocurrency can serve as an effective tool to hedge against local currency fluctuations. Many local currencies, such as the Venezuelan bolívar and the Zimbabwean dollar, can depreciate significantly overnight. As a result, various cryptocurrencies—especially stablecoins pegged to the dollar—are gradually being viewed as reliable alternatives for international trade. For merchants, cryptocurrency has become a lifeline for maintaining business, allowing them to conduct cross-border transactions and protect revenues from currency devaluation.

As familiarity with cryptocurrency continues to grow, its applications are also expanding into the business realm. As recipients become more accustomed to holding and using cryptocurrency, local merchants in these markets are also willing to accept crypto payments. This creates a seamless ecosystem that meets remittance needs while facilitating retail transactions.

The ongoing growth of cross-border commerce has exposed the inefficiencies of traditional banking systems, and these flaws are becoming increasingly apparent. As the global market drives merchants to expand international trade, avoiding the friction associated with traditional payment methods has become an urgent need. Among the alternatives, cryptocurrency is undoubtedly the most attractive solution.

The trajectory of cryptocurrency adoption is inextricably linked to the growth of cross-border trade. The pain points in global trade are unsustainable and require solutions. As a payment method, cryptocurrency will continue to enhance its value and practicality while driving broader market acceptance. Over time, this transformative virtuous cycle will redefine the landscape of global commerce.

For merchants, now is the critical moment to embrace this transformation. Adopting cryptocurrency is not just about staying competitive; it is an opportunity to unlock new frontiers for growth. A borderless future driven by digital currency is no longer a distant dream—it is becoming a reality today. Those market participants who seize the opportunity will occupy leadership positions in the future global economy.

Author: Anil Öncü, CEO of Bitpace.

Related: Decentralized Finance (DeFi) Fragmentation Can Only Be Addressed at the Account Level

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