Over the past 14 years, digital currencies have divided many opinions, with companies and investors showing different risk appetites regarding cryptocurrencies. After the November 2021 price explosions in the crypto market, when the total market cap soared to $3 trillion – and Bitcoin reached an all-time high of $69,000 – everyone became interested in this new “money” – even governments.
Despite the rapid adoption of crypto and blockchain over the past decade, Blockware Intelligence data suggests more needs to be done in the space. According to the report, Bitcoin is expected to reach a global adoption rate of 10% by 2030. While this represents a healthy figure of nearly 800 million people, it still only represents a fraction of the people who would benefit from the wonders of this innovation. .
This raises the question of what enthusiasts should do to unlock mass crypto adoption. Binance Exchange, the world’s largest crypto exchange by trading volume, has been one of the biggest players in the push for global crypto adoption, breaking down barriers to entry for millions of people. Below we look at some of the issues preventing global cryptocurrency adoption and how Binance works to solve each one.
How Can Crypto Platforms Drive Global Crypto Adoption?
The cryptocurrency market is still in its puberty stage and adoption issues are to be expected. Issues ranging from regulatory uncertainty to a lack of understanding of how the technology works, from security risks to scalability issues – all of these are expected in a young industry. However, there are emerging issues crippling the mass adoption of crypto.
1. Educational barriers
One of the biggest problems in crypto is the lack of proper education. For people unfamiliar with Web 3, words like DeFi, immutable, DAO, Vault, Mint, Wallet, Burning Tokens, and Tokenomics may sound like a foreign language. This makes it impossible to introduce the technology to the common people without prior knowledge.
Fortunately, platforms like Binance are launching education programs to bridge this gap. Programs like the Binance Academy, Learn & Earn, and Binance Research make it easy for beginners to learn about blockchain and help them take their first steps into the blockchain world.
2. Regulatory Barriers
Second, and more importantly, regulatory uncertainty makes it difficult for new users to adopt cryptocurrencies. Recently, the SEC sued Binance and Coinbase for listing digital assets as “securities,” sparking a massive exodus of funds from the two platforms. While critics are quick to point to regulation as a downside to what crypto stands for, the counter-argument suggests that regulations are crucial to further legitimize cryptocurrencies and increase global adoption at scale. Creating and implementing rules for crypto could be key to ensuring trust and safe use of the space, which could entice more people to join the industry.
Over the past five years, Binance has been working with legislators around the world to obtain regulatory licenses in various jurisdictions. The exchange is currently legally licensed in Italy, France, Spain, Poland, Cyprus, Sweden and Lithuania.
3. User experience in crypto
The cryptocurrency industry is confusing, especially for new users. Getting a wallet, storing crypto and using it can be complex for many people. Decentralized protocols can be even more complex to use and understand – fees, gas fees and staking – leading to a barrier to adoption. In addition, for those who got through the initial confusion, many exchanges and wallets still offer a limited or poor user experience. This often deters potential market participants from using crypto at all.
To solve the complexities, Binance offers a user-friendly UX/UI platform that makes it easy for users to create an account and wallet and start using crypto seamlessly. Users can easily open an account and a large number of crypto wallets with their Apple ID or Google accounts, gain knowledge about trading futures or options, and transfer crypto to different wallets. Earlier this year, Binance introduced its Tax Tool, a free tax assistant for anyone who needs to prepare their crypto taxes.
4. Financial Compatibility
Compared to traditional financial systems, crypto is still miles behind in usability. Digital currencies lack universal use cases like their fiat counterparts, making expanding their capabilities difficult and hindering mass adoption. In addition, many cryptocurrencies have little use outside of their network or trade. To close this gap in the market, crypto platforms are actively looking for solutions to integrate crypto into traditional financial infrastructure.
In 2018, Binance launched the Binance Card, in partnership with VISA and MasterCard, which allows users to spend their cryptocurrencies in any of the more than 100 million stores that accept the latter two payment methods. In addition, the exchange also launched Binance Pay, a contactless, borderless and secure cryptocurrency payment technology that allows users to shop with crypto or send crypto to friends and family around the world.
Finally, Binance also offers financial compatibility features such as lending, investing, and earning features that allow users to store, borrow, and lend crypto similar to traditional financial systems.
5. Partnerships and Communities
As the saying goes, “Together we stand, divided we fall”. To improve global cryptocurrency adoption, crypto platforms need to collaborate within and beyond the crypto industry. By creating strong partnerships, crypto platforms can leverage existing networks, share resources and build synergies. This can effectively introduce crypto to new audiences.
Plus, once new users sign up, it’s important to keep them active in the space. Binance ensures this by creating a strong community through its Binance Community programs, which are already hosted in more than 100 cities around the world. Second, the exchange also hosts conferences such as “Bitcoin Pizza Day” which helps the community interact and share knowledge in the blockchain space. Finally, Binance also launched its Rewards program that brings in new users by enticing and rewarding them with crypto.
In conclusion, the future of crypto mass adoption is promising, but several challenges need to be addressed. Educational barriers, regulatory uncertainties, user experience complexity, gaps in financial compatibility, and the need for strong partnerships and communities all play important roles in shaping the adoption landscape.
Crypto platforms like Binance are actively working to solve these problems by offering education programs, engaging with regulators, providing easy-to-use interfaces, integrating crypto into traditional finance, and fostering partnerships and communities. As these efforts continue, the path to widespread adoption becomes clearer, offering the potential to revolutionize the way we trade and interact with digital currencies on a global scale.
disclaimer: The content on this site should not be considered investment advice. Investing is speculative. Your capital is at risk when investing.