The future of payments will be virtual, with transactions taking place almost exclusively with either digital fiat currencies or with cryptocurrencies, said Jason Butcher, CEO of CoinPayments .
“I think 100% [of our daily transactions] will be transacted with crypto or with digital currency. A digital form of transaction will be 100% of [the future adult’s] life,” Butcher told David Lin, anchor for Kitco News.
In this case, cryptocurrencies simply record a transaction between two peers and act as a form of barter, Butcher said.
“For example, you and I decide to trade value, and you’re holding Bitcoin, and I’m going to be providing you a service, I’m going to be selling you a product, I’m exchanging that value with you, and we’re basically using a barter dollar, which in this case is Bitcoin. So, it’s a digital form of transaction that’s recorded on a blockchain that’s saying, you and I are deciding to transfer value between each other. I’m just using Bitcoin as that record of transfer rather than a Canadian dollar, or euro, or say, gold and silver,” he said.
CoinPayments is a platform that facilitates commercial transactions using cryptocurrencies.
“CoinPayments is similar to a payment gateway platform that you might think of traditionally from a Visa or MasterCard. The difference is that our gateway technology solution supports merchants with accepting crypto as a form of payment,” Butcher said.
The coin with the largest volume of transactions on CoinPayments continues to be Bitcoin.
There is a transition, we’re seeing more stable coins like USDT. Last January we saw about 5% to 10% of transactions in USDT, and now we’re seeing 25% or higher. Bitcoin used to be about 90% and today we’re seeing about 50% to 52%,” he said.
Influencers like Tesla CEO Elon Musk have stated that Dogecoin could be a superior form of payment than Bitcoin.
“Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin is… transactions per day has much higher potential than Bitcoin,” Musk said in an interview with Time Magazine.
Butcher responded to Musk’s comments by saying that Dogecoin is not unique in its properties as a potential form of payment.
“Dogecoin represents an opportunity that I would say, hundreds of other currencies or cryptos like those actually represent. Other platforms that are out there, Solana, USDT, or even USDC, or many other coins that are out there, are actually much stronger and much better for currencies to be used as a transaction,” he said. “The difficulty is, what’s the community? If you have five million people who have Bitcoin around the world, you have a community of five million people who have Bitcoin to spend, and if you only have 10,000 people who have Dogecoin, who is the community?”
Ultimately, coins that are stable, or have properties like a stablecoin, are the best, Butcher added.”
For more information on how cryptocurrencies will play a role in the development of the metaverse, watch the video above.
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