What Does the Popularity of Crypto Mean for Financial Institutions and the Way Consumers Pay?
Updated: May 23, 2022
With the unbelievable growth of Bitcoin over the last few years it seems everyone has an opinion on cryptocurrency - even if they don’t understand it. Some see it as a new idea whose time has come, some people consider it a fad, while others perceive it as a tool to protect their privacy.
With the signing of the US Infrastructure Bill late last year -that includes provisions to tax cryptocurrency transactions - it’s obvious crypto is no longer a part of our distant future. Crypto has gone mainstream and is changing the way we invest and as more companies begin taking Bitcoin it will change the way we pay.
But what does this mean for the financial ecosystem?
How Financial Institutions are Responding
Initially, banks and credit unions were not on board and deemed cryptocurrencies as a passing fad. In 2017 JPMorgan Chase CEO Jamie Dimon coined Bitcoin “... worse than tulip bulbs,” in a reference to the 17th-century Dutch tulip market bubble, according to an article from CB Insights.
Lloyd Blankfein, senior chairman of Goldman Sachs, echoed Dimon’s sentiments, saying, “Something that moves 20% overnight does not feel like a currency. It is a vehicle to perpetrate fraud.”
Although Dimon still may not be a fan of Bitcoin, his clients are. JPMorgan Chase announced plans in 2019 to roll out a digital currency called JPM Coin, they created a new unit for blockchain projects in 2020 to move money around the world and in August 2021 the firm started giving its wealth management clients access to buy crypto funds, CNBC reported.
And now financial institution are racing to catch up with fintech players like Coinbase, a crypto-centric firm, payment giants PayPal and Square, and trading brokerage firm Robinhood to capitalize on crypto’s popularity. According to a May 2021 article published by CNBC, crypto custody firm NYDIG has partnered with hundreds of US financial institutions to buy, hold and sell Bitcoin.
And it’s not just the big banks. Smaller institutions like California-based community Citizens Business Bank, with just seven branches, is selling Bitcoin to investors, and Blue Ridge Bank, a Charlottesville, Virginia based community bank, recently announced it is letting customers buy Bitcoin at 19 of its ATMs.
Changing the Way Consumers Pay
Today cryptocurrency is more popular than ever. Bitcoin’s value increased by nearly 70% in 2021 and the projected growth for crypto is off the charts. According to the research report Global Cryptocurrency Market Report 2021, the market hit $1.63 billion at the end of 2021.
Much of the growth is due to the convenience of Bitcoin ATMs that allow consumers, not just bank wealth management clients, to quickly and easily purchase their favorite cryptocurrency with cash. In 2021 alone more than 20,000 Bitcoin ATMs were installed globally with the majority based in the United States at locations such as convenience stores, pawn shops, smoke shops and other small business.
The popularity of crypto is forcing the payments ecosystem to evolve. Many experts believe crypto is where the future of trade, finance and asset growth are heading. The proof is the growing list of companies that accept Bitcoin. Today crypto is accepted by well-known brands like AT&T, Amazon and Microsoft, online travel agency CheapAir, traditional big box retailers like Home Depot and some fast-food restaurants.
From buying products and services to peer-to-peer lending, and sending funds to family overseas, it’s clear cryptocurrencies have proven they are not a fad.
Give Customers Access to Grow their Bitcoin Wallet
Hosting a Bitcoin ATM in your business is has many benefits, not the least of which is providing customers with the ability to quickly and easily purchase crypto. It also provides you with the ability to earn recurring revenue and differentiate your location from the competition.
Give us a call at 888.971.3116 or email us at sales@powercoinco.com to see if you qualify for a Bitcoin ATM in your establishment.