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Have We Been Driving Crypto Adoption the Wrong Way?

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The crypto industry is still waiting for a flagship mainstream adoption, and many are still looking forward to a simple use case that makes the benefits of blockchain clear and straightforward. 

In a recent tweet, entrepreneur Mark Cuban suggested that a lot has been going wrong when it comes to BTC adoption, which is why the digital asset is still struggling to go mainstream. 

The lack of crypto acceptance, especially in the investment field, can mostly be attributed to the U.S. SEC’s denial of more than a dozen applications to list Bitcoin exchange-traded funds (ETFs). 

Moreover, the anonymity and freedom cryptocurrencies enjoyed in the recent past as unregulated commodities are rapidly coming to an end. 

There’s been a drastic increase in regulatory efforts, with countries across the world taking a more deliberate stance to monitor cryptocurrencies or create alternative national digital currencies to counter decentralized coins.  

These factors could be stifling crypto growth and limiting the sector’s true potential to garner mainstream acceptance. 

What needs to improve to Drive for Crypto Adoption?

Many crypto experts agree that usability must improve before the wider public adopts crypto and blockchain networks. The blockchain DApp experience needs to be more like the mobile phone user experience and develop more practical use cases for daily use.

Killer DApps, scalability and lack of institutional adoption are frequently cited as the missing elements required for blockchain tech to reach the tipping point in mainstream crypto adoption. 

With regard to institutions, some progress was made in 2019 with the entry of Fidelity in Europe’s corporate space, and ICE’s Bakkt futures contract, but it doesn’t seem to be enough. 

Stephen Pair, CEO of Bitpay, thinks the solution to boosting crypto adoption is to integrate a healthier mix of everyday consumer items and services using crypto, such as consumers paying their cell phone bill with cryptocurrency

However, while the general public remains wary of digital currencies, banks, major tech firms, and other corporations have already started employing them, which could point to better usability that could launch public adoption of crypto and blockchain networks.

Moreover, the industry needs to do a better job reaching out to the non-crypto public to debunk misperceptions about cryptocurrencies and blockchain technology. 

Indeed, many people still associate blockchain with volatile cryptocurrencies and scams or hacks need to learn about the safety features of blockchain. 

Industry developers should also work hard to sustain the recent reduction in cryptocurrency crime going into 2020. 

The Industry Should Comply with Regulations

Security firm CipherTrace recently reported that approximately 65% of the top 120 cryptocurrency exchanges lacked strong Know Your Customer (KYC) policies.

Indeed many believe that the industry should not only comply with regulations on KYC and Anti-money laundering (AML), it should welcome them if it wants to grow. 

For instance, PwC Global crypto leader Henri Arslanian told reporters:

“Anyone who is launching a crypto exchange in 2019 with no regards to KYC or AML probably does not have the future of the crypto ecosystem at heart. “

He added that regulatory noncompliance, especially around AML, remains a barrier on the road to mass acceptance of cryptocurrencies.

Wayne Jones
Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

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