Although the pandemic was an unfortunate event, it contributed to the popularity of cryptocurrencies.
The growth of the crypto industry was not only evident in investment processes but also in adaptability as a means of payment. Even major social platforms such as PayPal and Facebook are currently working on the integration of cryptocurrency payments.
Facebook's colossal platform can attract a large audience and thanks to crypto can compete with the traditional financial institutions as a tool for transfers of money.
The evolution of cryptocurrencies can be seen in the current issues the cryptocurrency community deals with. Over the years, people have wondered about the sustainability of cryptocurrencies. But since big companies adopt it as a payment method, the prominent bone of contention is how to use cryptocurrencies as the mainstream.
Adoption of Crypto as Means of Payment in the World Today
In the U.S., FED network has been working with MIT to build a digital currency platform already since late 2020.
This really shows that the once thought impossible is now coming true and cryptocurrencies are aiming towards being a daily means of transaction, a regular medium of exchange.
If collaborations regarding cryptocurrency adoption don’t stall, there is no doubt crypto will thrive.
The CBDC and Crypto Adoption
The Central Bank Digital Currency, known as the CBDC, is one of the early use cases. It is a stable coin, pegged to a non-crypto asset and therefore not volatile.
One of the goals of CBDC is to make crypto transactions more manageable through decreased volatility and also more accessible to broader range of people, especially those who are not as internet-savvy as crypto enthusiasts.
This novelty is expected to enhance the security and oversight over digital currencies, including cryptocurrencies. Some consumers will be able to access their digital wallets as they nowadays access legacy financial services online.
The commercial sector has also taken a significant turn in cryptocurrency. The most recent rage is the non-fungible token, the NFT, which is traded mostly in form of artworks.
All this development puts the pressure on individuals and businesses alike to learn the ins and outs of the management of storage of cryptocurrencies. However, it is a common knowledge that this does not always work out. People make mistakes - in private and on behalf of companies as well.
Chinese entrepreneurs are known to take a big step in this, offering wallet recovery services becoming a rapidly growing niche.
The reason for that is the Chinese government has been trying out its digital platform known as eCNY or digital yuan. Using digital currencies is aimed to provide an anti-money laundering solution, but considering it is running on blockchain technology, wallet recovery services are projected to become even more sought-after in the near future.
Future Opportunities for Virtual Cash
Although virtual cash still cannot compare with fiat currency as for its general usability today, digital money offers some great benefits and opportunities. That has drawn the attention of many individuals and businesses all over the world.
Given the three benefits of cryptocurrencies listed below, many business strategists will recognise the possibility of needing a wallet recovery in rare cases of an accident will still be outweighed by the benefits of being in crypto.
Individual Control of Digital Wallet
Some businesses and individuals prefer the cryptocurrency mode of payment to the legacy form because of its lack of intermediary.
Users can perform transactions without waiting until the bank clears it, with no regard to current economic blockading or other government actions, and with no need of contacting any regulatory body for validation. Crypto uses a public ledger for validation and transactions are processed automatically.
Record Details of Every Transaction
Except for a few non-traceable alt coins, which are quite niche, regulators can track down transactions because each one is recorder in the cryptocurrency’s ledger forever.
Hence, blockchain technology is not actually the best tool to process illegal transactions!
Constant Smart Contracts Innovations
Digital coins developers keep working to develop new functionalities on major cryptocurrencies like Bitcoin or Ethereum. For some specific niche purposes, there are altcoins which is an industry that is constantly developing as well.
But it’s not only about adding new capabilities, such as smart contracts.
Initially, we had the Proof of Work mechanism to validate transactions on the first cryptocurrencies such as Bitcoin and Ethereum. Many alternative cryptos now operate with the Proof of Stake mechanism, which is a faster, more eco-friendly and less expensive transaction validation system.
This movement makes it evident that virtual money will keep increasing its capacity to serve a better purpose for its users, contributing to its extended stay in the financial industry.
The future of cryptocurrencies as a store of value has been established by 23 but their future as means of payment is still a topic of discussion.
Either way, there is no doubt that as long as cryptocurrency exists there will be the need for wallet management and recovery services on the individual as well as business level.