Crypto Assets unlock a borderless world, with merchants holding the key to the future.

Source: Cointelegraph Original text: "Unlocking a Borderless World with Cryptocurrency, 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 service into a pillar of global commerce. Instant transfers and contactless payments have now become the norm, reflecting the global market's widespread demand 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 opposed to 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, the advancements in cross-border transactions are inextricably linked to the increasing adoption rate of cryptocurrencies by merchants.

The demand for more efficient cross-border payment solutions continues to rise, with the sector expected to reach a valuation of $56 trillion by 2030. At the same time, the proportion of global merchants adopting cryptocurrencies is steadily increasing. Currently, about 30,000 merchants accept Bitcoin (BTC) payments. This number will continue to rise, and the adoption rate of other trusted cryptocurrencies will also increase.

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

Against the backdrop of consumers continuously seeking faster, more economical, and more convenient payment options, a mutually reinforcing chain reaction is reshaping the new landscape of global commerce.

The reasons merchants are starting to accept and introduce cryptocurrencies are not only to keep up with trends or provide customers with a fresh experience; cryptocurrency technology is eliminating long-standing barriers such as high transaction fees and slow settlement cycles.

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Especially for small and medium-sized enterprises ( SMEs ), eliminating intermediaries can completely transform their trade model. Cross-border business that was once unfeasible can now become an important and productive branch of the enterprise. With the help of cryptocurrency, small and medium-sized enterprises can reach international customer bases without sacrificing profit margins.

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

Merchants adopting cryptocurrencies not only help to address existing challenges in the payment sector but also significantly enhance the practical value of digital currencies themselves. As more and more merchants accept cryptocurrencies, the practicality of these assets in everyday use cases becomes stronger, especially evident in cross-border trade.

For example, when a buyer in Mexico uses cryptocurrency for remittances, they can seamlessly purchase products from European merchants 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 utility value of cryptocurrency increases, making it an increasingly viable payment option.

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

As expected, the adoption rate of cryptocurrencies in emerging markets often exceeds that of developed economies, with over 2 billion people in these regions estimated to lack adequate access to traditional financial services. The high fees and significant delays associated with traditional remittance services are driving people to turn to cryptocurrencies to avoid these pain points.

Consumers and businesses are increasingly recognizing that cryptocurrencies can serve as an effective tool for hedging against local currency fluctuations. Many local currencies, such as the Venezuelan Bolívar and the Zimbabwean Dollar, can devalue significantly overnight. As a result, various cryptocurrencies—especially stablecoins pegged to the US dollar—are gradually being viewed as reliable alternatives for international trade. For merchants, cryptocurrencies have become a lifeline for maintaining their businesses, as they use cryptocurrencies for cross-border transactions to protect their revenues from currency devaluation.

As familiarity with cryptocurrencies continues to grow, their applications have also expanded into the commercial sector. As recipients become more accustomed to holding and using cryptocurrencies, local merchants in these markets are also willing to accept cryptocurrency payments. This has created a seamless ecosystem that meets remittance needs while facilitating retail transactions.

The continuous growth of cross-border commerce has exposed the inefficiencies of traditional banking systems, and these flaws have become increasingly apparent. As the global market drives merchants to expand international trade, the urgent need to avoid the friction caused by traditional payment methods has emerged. Among the alternatives, cryptocurrencies are undoubtedly the most attractive solution.

The adoption of cryptocurrency is closely linked to the growth trajectory of cross-border trade. The pain points in global trade are difficult to sustain, and solutions are urgently needed. As a payment method, cryptocurrency will continue to enhance its value and practicality, while promoting broader market acceptance. Over time, this transformative virtuous cycle will redefine the global business landscape.

For merchants, now is a crucial moment to embrace this transformation. Adopting cryptocurrency is not only about staying competitive but also about unlocking new opportunities for growth. A borderless future driven by digital currencies is no longer a distant dream—it is becoming a reality right now. Market participants who seize the opportunities will take the lead in the future global economy.

Author of the viewpoint: Anil Öncü, CEO of Bitpace.

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