The blockchain is not just about payments. įinancial services are being offered through code, not just by companies.Therefore, in the future, it is likely that each of the major fiat currencies will have stablecoin equivalents, which will be used for everyday business-to-business and treasury transactions. Some start-ups have even avoided using traditional bank accounts, preferring to receive their venture capital funding in stablecoins, and to use them to pay remote workers, contractors and suppliers, especially those based overseas. By mid-2021, the combined market capitalisation of the top three had exceeded US$110 billion 5, with transaction volumes running into tens-of-billions of dollars every month. Hence, the use of stablecoins is growing. They therefore lack the volatility of other types of digital currencies but enjoy the functional benefits of blockchain-based payments, such as near instant settlements, low processing costs, and an elimination of counterparty risk. Stablecoins, such as USD Coin (USDC) from Centre or USDP from Paxos, are cryptocurrencies that are backed by and pegged to other assets, usually fiat currencies. So, what is driving the clamour of attention around cryptocurrencies? And what does it mean for Europe’s payment ecosystem?

And, by September, the Economist was suggesting it may be wise to add Bitcoin to any investment portfolio 3. In July, the European Central Bank kicked-off a project to investigate the launch of its own digital currency 2. In April 2021, for example, Reuters reported that the market capitalisation of cryptocurrencies had surged beyond US$2 trillion 1.

But, this year, it has been forcing its way into the mainstream. For most of that time, the phenomenon probably felt quite remote to most people. The cryptocurrency story began a little over a decade ago. With trillions of dollars of value locked up in the crypto-sphere, many financial institutions and payment providers are considering the implications for their business – and the potential to provide related products and services. Five cryptocurrency trends – and what these new payment flows mean for Europe Cryptocurrencies are no longer niche.

Cryptocurrency google trends