Cryptocurrency, for the most part, is in a comfortable stage in growth; the number of consumers in the wider crypto market has grown sharply in the last year and so has the institutional support for the industry. From all indications, crypto is firmly on its way to mainstream adoption.
But what kind of adoption is it set to attain? Cryptocurrency is very unique in that it can function as a medium of exchange for goods and services, an investment tool from which to make a profit, and as a utility tool to manage various platforms and ecosystems.
The problem is that so far, most of the emphasis regarding the crypto industry has been on its presence as an investment tool. The wave of new crypto users recorded at the beginning of 2021 coincided with the massive bull runs for tokens like bitcoin and dogecoin which brought in record profits for investors. Most people coming into the market were doing so to make money and not to spend cryptocurrency on everyday items.
Besides this emphasis, there is also a lack of structure within the market when it comes to spending cryptocurrency domestically. Most people do not want to go through the trouble of transferring to wallets and find crypto too far removed from the typical spending system offered by banks to spend tokens as easily as they do fiat currency.
This lack of structure around domestic crypto spending might threaten the future of cryptocurrency as a medium of exchange but CrossFi has been put forward as a possible solution to this issue.
CrossFi, essentially. Involves the provision of traditional banking services to consumers but leveraging blockchain technology for greater efficiency, privacy, and lower intermediate costs. CrossFi has become immensely popular over the last year also because they make use of native cryptocurrencies that are deflationary and resistant to volatility, a common issue within the cryptocurrency industry.
CrossFi can offer a solution to the current issue of cryptocurrency spending on a domestic level because it offers a framework to interact with cryptocurrency the way a consumer would with fiat currency while also offering the unique benefits of blockchain.
Take MinePlex, a popular CrossFi project offers both ways for consumers to spend cryptocurrencies with ease as well as make a profit from them. In terms of spending, MinePlex will soon offer its MasterCard debit card that is compatible with all Visa, MasterCard and UnionPay payment systems all over the world. This means that the card, which offers spending in both fiat currency and crypto, can then be used where any of the above are accepted.
This would include domestic payments like paying bills, travelling, buying food, and so on. Essentially, this would eliminate the hurdles that consumers would otherwise have needed to get through before accessing cryptocurrency spending. Instead, cryptocurrency will be able to be spent practically anywhere in the world with ease and MinePlex transactions will typically take less than a minute to complete when using the debit card.
The beauty of this setup is that it merges together the worlds of cryptocurrency and fiat currency, allowing customers to spend crypto, withdraw fiat, and everything in between, from a single place.
The widespread adoption of cryptocurrency as a medium of exchange will require both the structure to spend tokens with ease as well as price stability. While the wild fluctuations often seen in the crypto market means that investors can make a profit from it, those who simply want to use cryptocurrency as a medium of exchange might be turned off.
After all, who wants their spending currency to change in value on a daily basis? With CrossFi, these two issues are taken head-on and addressed. In the case of token price stability, CrossFi projects often have native tokens (such as MinePlex's PLEX tokens) that are anti-inflationary and stable in nature, eliminating the issue of consistent token prices when paying for everyday goods and services.
In the case of structure, options like MinePlex's debit cards means that there is virtually no difference between spending cryptocurrency and spending fiat currency. With these barriers effectively broken down, proper adoption can take place.
Within MinePlex's ecosystem, consumers can also earn interest by holding tokens in their wallets every month, preserving one of the most attractive aspects of cryptocurrency use. As more of these sorts of options pop up, they further promote to the public that cryptocurrency is to be spent as much as it is to be invested.
Over time, this can help domestic cryptocurrency use catch up with rates of crypto trading and investments. This, in turn, will help create a more balanced industry and give crypto a property shot at taking on fiat currency as the default way to pay for goods and services around the world.