Bitcoin and cryptocurrency market will grow as big as credit cards - CoinPayments
In a recent interview with Yahoo News, Jason Butcher, CEO of CoinPayments, said that he sees similarities between the adoption of bitcoin and the use of credit cards.
"Many people didn't have credit cards initially, and many businesses didn't accept credit cards because they just didn't know; they weren't familiar with it; they didn't trust it,"he said in the interview. "Today, as you know, most places around the world accept credit cards as a form of payment and I believe that crypto is starting to get there. There is an education process; there is an adoption phase; there is more of a consciousness that cryptos are a form of payment."
As to what gets the crypto economy to the next stage of mass adoption, Butcher said that regulation will play an essential role in the market's future.
"When you look at Wall Street or some of these big financial players, what has been the biggest change is regulation,"he said. "As regulations come into place, it will start to move all the big players. When they have clear, precise ways of making sure their businesses comply with financial regulation, they will start playing in the market and we see that today."
Wednesday, Butcher's company also highlighted stable transaction growth as another sign of growing acceptance of cryptocurrencies as a global payment system.
Last month the digital currency market lost roughly $1 trillion in value as bitcoin dropped sharply from record highs. However, despite the price volatility, CoinPayments said that it saw strong consumer demand for alternative payment methods.
The world's leading crypto payment processor said that it processed 494,000 transactions in Europe and North American in May, down only 3% from April's record highs. However, annually, transaction numbers were up 54% compared to May 2020. Year to date, transactions are up 22%.
"Looking through the recent market volatility, we can see that digital currencies are more than just another investment asset. As we continue to see strong transaction numbers, it is clear that merchants and consumers want alternative options to pay for goods and services,"said Butcher in a statement Wednesday.
Looking at a regional breakdown, the company processed 385,000 transactions in Europe, which remains the world's largest crypto economy. Meanwhile, 109,000 transactions were made in North America.
The stability in cryptocurrency transactions comes as the U.S. dollar saw a significant decline in May. During the month, the U.S. dollar index fell nearly 2%. The decline in the U.S. dollar comes as inflation pressures continue to rise. April saw U.S. consumer prices rise 4.2% for the year, the biggest increase since September 2008.
"We have been warning consumers that the inflation threat is real and growing. In a world of fiat currencies and falling purchasing power, cryptocurrencies remain an important alternative for consumers and merchants,"Butcher said in the company's latest report. "For the last three months, we have seen record transactions, but this is just the start of a much bigger trend for the crypto economy."