Everybody who uses cryptocurrency already knows how revolutionary and versatile it is, but one simple fact cannot be denied: it is still a struggle to use it to purchase goods. It can be hard to find online shops that accept crypto, and even harder to find physical stores that do. The main reason for this is because we are still in the early stages of adoption, but that will inevitably change.
What is E-Money?
Cryptocurrency could be the most ambitious invention in financial history, but it is not the first to disturb and confuse the public. In fact, one invention, decades old, took years before it was indeed accepted: E-money. Electronic money is money that exists in the form of numbers on a computer, but unlike cryptocurrency, it is always pegged to its fiat counterpart.
PayPal, Western Union, and Neteller use E-money, and it’s what you’re looking at when you access your bank balance online and what you see when you use an online betting site. Without E-money, we wouldn’t have credit or debit cards, contactless payments, or the ability to wire funds with the click of a button. In 2018, E-money is a fact of the Western lifestyle.
It might be hard to imagine nowadays, but when E-money came into existence, there was a considerable backlash. People were uncomfortable with the fact that their money could be viewed on a computer or that it could be sent to another person without either party touching a bank note. People feared that nothing backed it and that mechanical errors could render people penniless. It wasn’t until people started to use it that they gained confidence in it and recognized that E-money and physical bank notes could work in unison.
This is the situation cryptocurrency is in right now. The public is skeptical, uncomfortable, and confused about it— but there’s a way to change that. Just like how people got used to E-money by understanding that it works in tandem with physical money, we need people to understand that cryptocurrency can work in tandem with E-money. This is what companies like TenX, Monaco, and Wirex are successfully managing to do.
Widespread Adoption in Sight?
The fact that these companies offer cards that can hold both cryptocurrency and legal tender (in the form of E-money) is the perfect way of introducing the public to crypto. It is a non-threatening and efficient means of showcasing how useful cryptocurrency can be. It also shows people the partial similarities to E-money, making it easier to both understand and trust it.
While we may be years away from true cryptocurrency adoption, products like the Wirex and Monaco crypto debit cards are the perfect tool for pushing the industry forward, and getting the public to recognize the potential of cryptocurrency.