Just ten years ago, the perception of cryptocurrency was vastly different from how it is now. Cryptocurrency used to be associated with purchasing services or products on the dark web; however, this isn’t the case anymore.
With developments in technology and changes in regulation, consumers are putting more of their trust in crypto. In this article, we’ll look at four of the ways the crypto industry is enhancing consumer trust and what this means for payment methods.
Read on further to find out more.
No interference from government institutions
The very nature of cryptocurrencies means that they operate on a decentralized network, also known as blockchain or distributed ledgers technologies (DLT). Cryptocurrencies have no central authority that controls their use, meaning that governments can’t interfere or impose significant sanctions on it.
Cryptocurrency is, therefore, theoretically, immune from manipulation or political interference, even on a global scale. This is a particularly attractive quality in a payment method, considering the volatile nature of regular currencies that can be manipulated by oil or gas prices, or economic sanctions.
This independence makes it a particularly useful payment method in countries with unstable currencies and governments. Especially in 2022, we are seeing this becoming more and more commonplace, in countries such as Venezuela or Russia
Enhanced Security and Identity Checks
Long gone are the days of Silk Road, the legendary dark web marketplace. With cryptocurrency getting more and more regulated, users are now protected through various methods of security and identification procedures.
For example, ID verification and KYC checks for crypto are now more prevalent and commonplace for crypto applications. Due to a shift in regulations and having cryptocurrency recognized as a financial service, it now means that crypto customers are benefiting from additional security measures to prevent fraud, such as identity theft and money laundering.
Easy to use and functional
With a rise in the number of payment methods that accept cryptocurrency, it’s now incredibly easy for users to trade, buy and use cryptocurrency. With favorable exchange rates and low costs to send money abroad in comparison to regular banking apps, cryptocurrency is an increasingly preferred payment method for many.
Speed of transactions
As we live in a society that values speed and efficiency, banking apps and regular payment methods have not kept up with the times. But with cryptocurrency payments, funds are transferred instantaneously from one user to another. And that even internationally across borders and regions.
Given that some traditional payment methods take hours or even days to process, this doesn’t reflect customers’ or merchants’ needs for purchases and their spending habits. Cryptocurrency has a payment method that is fast, but also secure and safe to use.
Cryptocurrency and consumer trust: the takeaway
The combination of the rise of both cryptocurrency and smartphone apps has changed the way customers want to store their money. Recent innovations in technology and how cryptocurrency can be stored have dramatically improved customer trust in cryptocurrency as a legitimate payment method.
With more focus from regulators and increased security within the crypto industry, consumer faith will continue to increase.
Blockchain technology is developing virtual markets in a way never seen before. State-of-the-art security tools that provide users with a sense of protection will be paramount in regulating this market and customers’ trust in crypto.