Temper Excitement About Crypto With Reality


The company is poised to adopt a more efficient form of payment, according to Stoyan Kenderov, chief operating officer of Plastiq, a payment management, automation and cash flow company.

It remains to be seen if that is the cryptocurrency, he told PYMNTS.

While there is “enormous enthusiasm for cryptography, there is also enormous uncertainty that most consumers are unaware of,” Kenderov said, especially of regulatory pressures, questions, and price volatility of the new asset class.

“The excitement stems from the fact that, for a time, cryptography was one of the fastest growing asset classes,” Kenderov said.

In fact, PYMNTS ‘April study, “U.S. Crypto Consumers: Using Cryptocurrency Use in Online and In-Store Purchases,” showed that nearly 60 million Americans have had digital assets in the last 12 months, 18 million more than in 2021, and more. of a quarter. he would rather do business with merchants who accept him.

Read more: PYMNTS data show a leap in crypto ownership, a willingness to spend it

Crypto Concerns

“What is driving volatility for cryptocurrencies?” said Kenderov. “How does the asset class correlate with other asset classes? All of this is in the background for most consumers.”

Comparing the current state and understanding of cryptography with a “rapid enrichment scheme” in which “many people make a lot of money, but also a lot of people lose a lot of money,” Kenderov said that while the emotion may be understandable, it is “unfounded.”

Working on issues such as the vague nature of those behind many projects, concerns about the environmental impact of cryptocurrencies like bitcoin, and the difficulty of assessing the strengths and weaknesses of the often complex protocols behind those cryptocurrencies will take years to work, he predicted. – as well as the government’s assessment of what they will tolerate and how they will regulate cryptography.

“Crypto was built to be anonymous, to decentralize control, to add a layer of privacy,” Kenderov said. “It’s all very interesting, but as a society, I don’t think we’re ready to admit that there will be no restrictions on money laundering or terrorist financing. We have to look for solutions to these.”

First Days

“We are in the early days of digital currencies, and the current craze for cryptocurrencies and cryptocurrencies is likely to slow,” he said, as more durable and long-term cryptocurrencies begin to emerge from the mass of 10,000. of projects.

“There are huge risks right now: regulatory risks, technological risks, security risks, that [require] a completely different level of risk tolerance, “he added.

For small and medium-sized enterprises (SMEs) that consider accepting crypto, he suggested starting slowly, accepting it for “5% of its total volume, not 50%”.

See also: PYMNTS data shows that the use of Crypto for in-store shopping is growing

Kenderov, meanwhile, said: “Payment automation is beginning to permeate different domains.

Businesses that want to improve payment automation and back office responsibility don’t have to wait for encryption, he added.

“There are tools and vendors like Plastiq that right now can add huge efficiency,” he said.

There are other flawless solutions to encryption that can solve some of your payment problems, such as speed, cost, and scalability, such as real-time payment options such as Federal Reserve FedNow or central bank digital currency (CBDC) issued. by the government that would provide the transparency and auditability of cryptocurrencies.

“The digitally liquidated traditional money movement is likely to compete for speed with cryptocurrencies, and is a viable competitor to speed up payments worldwide,” he said. “I think society is ready to adopt a more efficient form of payment tools and payment channels, but at the end of the day, the purpose of a currency is to make transactions possible, to make trade possible.

“I definitely see cryptography as part of this evolutionary path, but I don’t think the current protocols are that. They will evolve.”

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND SHOP CARDS – APRIL 2022

About: Shoppers who have store cards use them for 87% of all eligible purchases, but that doesn’t mean merchants should start buying now, pay later (BNPL) options from the time of purchase. The Truth About BNPL And Store Cards, a partnership of PYMNTS and PayPal, surveyed 2,161 consumers to find out why providing both BNPL and store cards is critical to helping merchants maximize conversion.



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