There has been an increase in the use of cryptocurrencies in e-commerce. At the same time, however, the awareness that digital currencies are associated with risks does not disappear. In addition to consumers and merchants, experts from the fields of payments, financial regulation and culture are curious to see how the use of cryptocurrencies unfolds.
Popular with younger consumers
Cryptocurrencies are becoming more popular, particularly among younger demographic groups. Globally surveyed consumers aged 18 to 35 want to use digital currencies to pay for goods or services within the next year. This represents a 30 per cent increase over the previous year and reflects a significant shift in attitudes toward digital currencies. In the past, crypto was majorly seen as an investment vehicle. Now it is more of a mode of daily commerce.
This growing consumer acceptance of cryptocurrencies stems from a pressing need for more convenient and secure payment methods. Furthermore, an increasing number of merchants and third-party providers are providing the underlying infrastructure to support these methods.
There is a valid transition from acceptance to a more practical, pragmatic, and overall positive attitude. Furthermore, there is a high demand for fintech firms that can provide simple-to-implement solutions and services. As a result, they help merchants get started with crypto payment options and fine-tune the process over time. We anticipate that this trend will continue in the coming year. As soon as we incorporate additional services into Web3.
Increasing Confidence in Digital Currencies
Even if cryptocurrencies have a solid technological foundation, further development can be risky. So far, providers and retailers have worked hard to build trust in these services. And the growing consumer acceptance of cryptocurrencies has begun to influence how businesses interact with them. Visa is already collaborating with 65 crypto wallets through which consumers can spend their money. For settlement, the transactions are converted into fiat money. PayPal also accepts crypto-based payments from select third-party providers.
According to research, many CFOs and corporate treasurers are becoming increasingly interested in processing payments in stablecoins and having them on their balance sheets. Many people see cryptocurrency as a means of using decentralized finance for financial management. Some even intend to pay suppliers and employees in stablecoins. And primarily in response to these target groups’ demand. According to 51% of the companies, at least some employees have expressed an interest in being paid in cryptocurrencies.
New Communities as Pioneers
New communities of content creators, gamers, and gig workers are leading the way in cryptocurrency adoption. Almost half of online creators (46%) say their fans and customers paid them in digital currencies. These communities put to the test what is possible with tokens and cryptocurrencies. This is a foreshadowing of what is to come in the mainstream.
It will be interesting to see what this accessibility means for consumers and retail investors alike. However, those who create culture (artists, designers, musicians, etc.) create new and diverse sources of capital. As a result, new types of goods can be created. It is possible that completely new types of cultural goods will emerge as a result of the new digital and playful lifestyles. These are now possible thanks to Web3 innovation.
Another scenario that 65 percent of C-level executives believe is likely: Web3 will significantly alter B2C dynamics as consumers become producers. This market is expected to expand significantly. The gaming economy is projected to reach $260 billion by 2025.
The cryptocurrency market is maturing, with utility, pragmatism, and consumer empowerment becoming increasingly important. We believe that digital currencies have the potential to transform not only the way people transact, but also the dynamics of the entire digital economy.