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Well regarded cryptocurrency influencer Meltem Demirors recently made an acute observation regarding Fidelity National Information Services Inc’s $35.5 billion deal to acquire Worldplay Inc- the biggest deal ever in the international payments sector.

Following the deal, Ms. Demirors tweeted:

“the payments industry is BOOMING – $2.4 trillion in revenue expected in 2020 for context, this ONE M&A deal is larger than the value of crypto networks 2 – 10 (excluding BTC) resolving payments friction is a massively important use case for #crypto”

The relevance of this tweet being, is Ms. Demirors correct? For cryptocurrencies to be able to have the adoption intended, is the issue of frictionless payment paramount for future widespread, sustained success?

According to the consulting firm, McKinley:

“The financial technology sector is consolidating fast, with global payments set to reach $3 trillion a year in revenue by 2023 as more people switch from cash to digital payments for online and high street sales.”

Cryptocurrencies such as Bitcoin offer the next viable evolutionary step in fiat and are seen to have to the potential to become a mainstream phenomenon by the next decade.

While one of the objectives of Bitcoin was to become a form of electronic currency for online payments, its primary use thus far has been of a speculative nature. However, this has begun to change, especially with the implementation of the Lightning Network and Bitcoin fees reducing massively from their prior highs.

Various emerging intermediaries are increasingly operating within the Bitcoin network- this includes exchanges, merchant processes, and money transmitters.

Bitcoins price volatility is seen as a hindrance for more widespread use as a medium of exchange, and there have been suggestions for the creation of financial instruments to help reduce the levels of volatility.

Money has continued to evolve significantly over time, the rise of contactless and mobile payments being the latest occurrence. Every time there was a new step, it made the prior ones inefficient and unusable.

If Bitcoin can demonstrate progress as a sufficient medium of exchange, unit of account and store of value, cryptocurrencies can represent the next step in the evolution of monetary payments. Given the nature and architectural abilities of cryptocurrencies, they are regarded as the natural next step to reducing friction in the global economy.

The entire ecosystem of cryptocurrencies continues to grow and evolve, and decentralized technology has the potential to alter the nature of financial systems and financial assets.

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