The future of finance might not be a complete takeover by cryptocurrencies, but rather a blend of digital assets and traditional fiat currencies. Petr Kozyakov, CEO of crypto payments platform Mercuryo, believes that each will find its niche where it offers the most advantages.
In an interview with Cointelegraph, Kozyakov highlighted the increasing demand for and adoption of crypto payments. However, he doesn’t foresee crypto fully replacing fiat anytime soon. Instead, he envisions a future where the two coexist, with individuals selecting the most convenient payment method based on the specific situation.
“We don’t think crypto will replace fiat,” Kozyakov stated. “They will coexist, and people will turn to crypto when it’s the easier, more practical option, whether that’s for payroll, yield, or money transfers.”
Crypto Payroll: A Growing Trend
Paying salaries in crypto is gaining traction. Kozyakov noted that more companies are using crypto assets to pay their employees.
“That is a growing trend,” Kozyakov confirmed. “I see a lot of businesses that are starting to settle with their full-time employees and with their gig employees all over the world, in crypto.”
However, this also creates new challenges. Employees paid in crypto need practical ways to use their funds. They need options beyond simply investing and holding. Crypto earners need ways to use their digital assets for everyday purchases, like coffee, drinks, and bills.
The acceptance of crypto in employment contracts is also increasing. For example, in August 2024, a court in Dubai recognized crypto as a legitimate form of salary payment.
Crypto: More Than Just Speculation
Mercuryo views crypto as a powerful tool for moving and storing value, not just a speculative asset.
“Crypto is not only an asset; it’s the perfect rail to move money and store money. And it is essential to be able to spend it,” Kozyakov explained.
However, spending crypto can be complex. It often involves multiple steps, including transferring it to an exchange, then to a bank account, and potentially facing scrutiny from banks.
This highlights the need for easier ways to spend crypto directly. Mercuryo is addressing this issue. Recently, they partnered with Ledger to launch a crypto payment card that allows users to spend crypto anywhere Mastercard is accepted.
Kozyakov believes that seamless crypto payment options are essential to drive wider adoption, not just as an investment vehicle, but as a true medium of exchange for daily life.
Key Takeaways on Crypto Payments:
- Coexistence: Crypto and fiat currencies will likely coexist, with users choosing the most convenient option.
- Payroll: More companies are paying salaries in crypto, creating a need for practical spending options.
- Utility: Crypto is seen as a tool for moving and storing value, not just a speculative asset.
- Accessibility: Easier ways to spend crypto directly are crucial for wider adoption.
- Regulation: Some countries are beginning to accept Crypto as a legitimate method for payroll.
The Challenges of Crypto Payments
Despite the growing acceptance and utility of cryptocurrency, the use of crypto payments faces some challenges that might slow down its use case as a mainstream payment method.
- Volatility: Cryptocurrencies are known for their volatility, which can make them unstable as a method of payment and can leave the user in some circumstances with less than they were meant to be paid.
- Transaction Fees: There are transaction fees associated with sending and receiving cryptocurrencies, in some cases, these fees can be higher than the fees with traditional forms of payment.
- Regulation: The future is unknown for crypto regulations, meaning that if they were to get banned, the usefulness of crypto as a payment would diminish.
