Traditional Finance Inertia Hinders Crypto Adoption

Despite the early promises of blockchain technology to revolutionize global finance, cryptocurrency payments, while gaining traction, remain a small fraction of the overall market.

Petr Kozyakov, co-founder and CEO of payment infrastructure platform Mercuryo, sees trust in traditional finance, despite its inefficiencies, as creating hesitancy among businesses and regulators regarding stablecoins.

This observation follows a discussion on the persistent challenges faced by cryptocurrency payments in gaining mainstream adoption, despite early predictions of blockchain technology revolutionizing global finance.

While cryptocurrency payments are steadily increasing, they still represent a small portion of the overall market. Industry experts have pointed to a combination of traditional financial inertia, crypto price volatility, and regulatory uncertainty as key factors hindering this broader adoption.

Highlighting these challenges, Kozyakov stated, “It boils down to a mix of inertia and uncertainty. Traditional finance has been around forever and people trust it, even if it’s slow and expensive. Cryptocurrency, especially stablecoins, are still comparatively new and that makes businesses and regulators nervous.”

This assessment aligns with recent reports analyzing the crypto payment landscape. Marketer Linda Roper wrote in a blog post that while some level of resistance to change is normal, it can be damaging when it stops a finance team from broadening its horizons and thinking outside the box.

Moreover, a recent survey by Bitget among 1,078 Web3 users found that while users prefer crypto payments for speed, security concerns remain a key barrier.

Lack of a unified global regulatory framework also creates a complex landscape for businesses operating in the crypto space. However, proponents argue that the cryptocurrency payment landscape has evolved with significant advancements in security and scalability, which in turn pave the way for mainstream business adoption.

Kozyakov, a veteran in the payments industry, concurs and adds that the crypto space has reached a crucial turning point, fueled by technological improvements and growing user confidence.

“We’re definitely getting there,” Kozyakov said, addressing the question of whether mainstream businesses can now confidently accept crypto payments. He told Bitcoin.com News about the dramatic improvements in security, particularly in Web3 protocols and custody solutions.

“Think about how much stronger [they] are compared to five years ago, when network outages—sometimes for hours at a time—were the norm and were tolerated.”

Kozyakov also pointed to the significant strides made in scalability, thanks to Layer 2 solutions and high-speed networks. But he said the most crucial shift is user acceptance.

“People are more comfortable with digital wallets, and as education spreads, the hesitation to engage with crypto fades.”

Mercuryo’s crypto integration journey has spanned several years, and the company has encountered unique challenges in promoting mainstream adoption of crypto payments.

Kozyakov’s insights provide valuable perspectives on the evolving landscape of cryptocurrency payments and the key factors that will shape its future. As technology continues to advance and regulatory frameworks become more defined, we can expect to see even greater integration of cryptocurrencies into the mainstream business sector.