Ethereum’s co-founder, Vitalik Buterin recently talked about crypto payments and said that they could come in handy for facilitating international businesses and also support local payments.
He said that crypto payments were a far more superior option than fiat, but they were highly ‘underrated’.
According to Buterin, cryptocurrencies make it convenient for people who have to make payments internationally, or pay charities.
He explained in a Twitter thread that since cryptocurrencies have proven to be resistant to censorship and are quite convenient, they have become the preferred option for making charity payments, or settlements with local and international businesses.
He went on to say that there were several shortcomings that could be found in the fiat system, one of which is that transaction processing can take a long time.
In addition, the fees charged for conducting fiat transactions is also considerably high. These are some of the reasons that Buterin believes cryptocurrency is superior to fiat, even when donations have to be made.
The Aid for Ukraine crypto fund is one such example. Crypto donations have been made to support Ukraine in its war against Russia.
These payments have been made to the official wallet addresses that were provided by the Ukrainian government for this purpose.
Mykhailo Federov, the Vice Prime Minister of Ukraine, disclosed on August 18th that they had received crypto donations worth $54 million via their Aid for Ukraine fund.
Crypto payment adoption growth
There has been a significant amount of growth recorded in the adoption of cryptocurrencies globally.
A survey was conducted by PYMNTs in July, which showed that crypto payments were being used to acquire new customers by about 85% businesses that have an income of more than $1 billion.
Likewise, the number of crypto debit cards has also seen a substantial rise. The world’s largest crypto exchange in terms of trading volume, Binance also entered into a partnership with MasterCard.
This was for introducing a crypto card for the Argentinian market.
People find it easier to spend their crypto assets through the use of prepaid crypto cards. Majority of the cards, including those offered by Wirex, provide crypto cashback to users for payments made.
As a matter of fact, some of these cards also come with support for crypto withdrawals via ATMs. But, there are also users who have objected to the use of crypto cards for payment purposes.
These objections have been raised because of factors, such as regulatory risk, ease of use, price volatility, and high fees on a few blockchain networks as well as long processing times.
Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are known to take longer for processing payments.
Stablecoins have also gained popularity when it comes to the medium of exchange. This is due to the fact that those that are pegged to the US dollar do not have the same level of volatility as other crypto assets.
Therefore, this has made them an ideal store of value in numerous developing countries.