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Cryptocurrency adoption in payments continues to be a hot topic of discussion. According to a <a href="https://forexsuggest.com/worldwide-crypto-readiness-report/" rel="noopener noreferrer nofollow">recent survey</a>, Hong Kong is the most-prepared country for wide cryptocurrency usage, with an 8.6 grade in crypto-readiness. Despite having a deeper crypto infrastructure than the island nation, the United States and Switzerland secured second and third places, respectively, with 7.7 and 7.5 grades in crypto-readiness.Will this trend continue in the long term and spread to other countries? What stops people from using <a href="https://coincodex.com/crypto/bitcoin/" rel="noopener noreferrer nofollow">BTC</a> in their daily lives? Perhaps, we might consider other types of digital assets to achieve global crypto adoption?<h2 id="header-0">What is the current state of crypto adoption?</h2>Cryptocurrencies are growing at a rapid pace. Currently, there are more than 19,000 cryptocurrencies in existence and this number continues to grow by more than 500 every month. Nevertheless, these 19,000 and counting currencies make up only a small fraction of the total market, about 20% or around $200 billion at current valuations. Over 80% of the total market is controlled by the top 10 coins by capitalization.Similarly, a large number of these tokens were never intended to become ‘money’ outside of their own projects. Their total value is so small on global terms that it is not realistic that they will ever become a recognized means of payment. However, that does not mean they have no value outside of their own ecosystem, as there are many smart solutions that convert such currencies into traditional money via means of exchange platforms, such as Coinbase or Binance, and in turn this will increase their attractiveness as a means of payment.A <a href="https://www.newsbtc.com/altcoin/deloitte-survey-clearly-shows-crypto-payments-are-the-next-big-thing-in-commerce/" rel="noopener noreferrer nofollow">survey</a> by Deloitte, in collaboration with PayPal, shows that 83% of merchants expect consumer interest in digital currencies as a payments medium to increase over the next 12 months. And more than 85% of the surveyed organizations are giving high or very high priority to enabling cryptocurrency payments.<h2 id="header-1">Why is Bitcoin not an optimal solution for crypto payments?</h2>Seeing as how most cryptocurrencies are not really suitable for use in payments, let&#39;s take a look at the biggest and most well-known one - Bitcoin. One major barrier for its mass adoption is its highly volatile value, which makes it risky and difficult for people and companies to know what its value will be in the future.In recent years, BTC has decreased from $20,000 to as low as $4,000, then back up to $60,000 before dropping again down to $20k. In order for Bitcoin to be utilized as a currency, its price would need to be more stable. Until this matter is resolved, BTC will continue to serve as a type of financial security similar to gold, rather than a payment tool.Another barrier to adoption is the fact that Bitcoin transactions can take a long time to confirm, which again makes it impractical for many everyday purposes.<h2 id="header-2">Stablecoins become a more promising avenue of advancement</h2>As their name suggests, <a href="https://coincodex.com/cryptocurrencies/sector/stablecoins/" rel="noopener noreferrer nofollow">stablecoins</a> are digital assets whose prices are pegged (stabilized) to that of another asset, typically a fiat currency like the US dollar. This stability makes them much more useful as a means of payment, as merchants and consumers can be sure that they won’t lose money due to price fluctuations.For example, <a href="https://coincodex.com/convert/tether/usd/?amount&#61;1" rel="noopener noreferrer nofollow">1 USDT</a> is equivalent to $1 USD and is therefore backed by $1. Therefore, if the value of the $1 changes compared to the Euro, so does USDT. In a sense, this solves a core problem experienced by Bitcoin, price volatility, but not everybody is convinced.Stablecoins are being produced by private businesses with minimal regulation. To produce money, a bank must go through a complex regulatory framework that is regulated by governments. Stablecoins just require the appropriate expertise and knowledge to be created, which means practically anybody with the right knowledge can make one.There is still a lot of speculation about their value. Most people believe that stablecoins will eventually be adopted by major financial institutions and used as mainstream currency. However, there is no guarantee that this will happen. Banks and other financial institutions are very conservative and may not be willing to take the risk of using a new currency that is not backed by a government.But that is changing. Regulators all around the world <a href="https://coincodex.com/article/17219/uk-parliament-presented-with-stablecoin-regulations-that-could-provide-framework-for-safe-adoption-of-crypto-assets/" rel="noopener noreferrer nofollow">are recognizing</a> the huge promise of stablecoins and rapidly looking into the frameworks for their creation and management.<h2 id="header-3">Prospects for the future</h2>If cryptocurrencies are to ever get adopted as a mainstream payment solution, stablecoins are likely to be the asset class to achieve this. That said, stablecoins will still need to be regulated and managed in a way that is not dissimilar to traditional banking. This will be necessary to ensure that people feel comfortable using them.I believe that within the next two years, we will see stablecoins make up a much bigger share of the total cryptocurrency market, and this will pave the way for crypto to become a more accepted means of payment, especially for online transactions.by Austin Kimm, Director of Strategy &amp; Investments at MetaFi ecosystem Choise.comAustin is an experienced international CEO &amp; C-level fintech business leader, having set up companies with a combined valuation of over $500m. He has more than 25 years of experience as a CEO of international companies with a focus on all types of financial services, especially insurance and latterly cryptocurrencies. At present, Austin is the Director of Strategy &amp; Investments at Choise.com, a MetaFi ecosystem that brings together the best-in-class CeFi and DeFi services and offers people more opportunities to earn on their cryptocurrencies.Read full article <a href="" rel="noopener noreferrer nofollow">https://coincodex.com/article/18281/stablecoins-as-the-key-to-widespread-crypto-adoption/</a>

Austin Kimm, Director of Strategy & Investments at Choise.com for Coincodex: Stablecoins as the Key to Widespread Crypto Adoption

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