Crypto payments have been on the rise in recent times. Ever since digital currencies became viable as a payment method, there was always the belief that it would threaten the place of fiat currencies in the economy. However, it seems to be happening faster than anticipated. Australia is one of the leading countries in taking up cryptocurrencies.
Research by deVere Group has established that more than half of Gen Z and a third of millennials are willing to receive half of their salary in Bitcoin or any other cryptocurrency. The deVere group CEO attributed the young generations embracing cryptocurrencies to their digital native nature.
The younger generation trust autonomous decentralised finances without control of the government and financial institutions. Unlike traditional currencies, digital currencies offer borderless transactions ideal for global trade and commerce.
So far, the 2021 financial year has seen a massive increase in crypto transactions amongst Australians. Aussies making payments using Bitcoin doubled in 2021 as tech companies are overtaking banks in offering financial services.
Most crypto payment users started as an experiment looking to see what digital currencies entail or to promote blockchain. However, after some time, they have fully integrated their finances into the crypto systems. Some are now using digital currencies exclusively.
Crypto users prefer the privacy that comes with using digital currencies. The decentralised nature of cryptos keeps it fair and honest, which works perfectly even for countries like Nigeria and Venezuela whose currencies are struggling. The presence of the ledger that records all blockchain transactions eliminates the possibility of corrupting the monetary system.
At the same time, the role of crypto exchanges cannot be understated in the increased Australian crypto uptake. Top crypto exchanges like Coinbase and BTC Markets are fully operational in Australia to allow the population access to digital currencies. These exchanges provide the needed bridge between digital currencies and fiat currencies like the Australian Dollar. The exchanges support those who wish to pay their bills through crypto and live a decentralised life.
The traditional payment services providers like Visa have also responded to the increasing demand for crypto payments in Australia. Earlier, the financial giant had approved local startup CryptoSpend to issue debit cards to its users. The debit cards make it easier to use digital currencies in retail stores and hospital venues.
The other Australian crypto services companies that have seen tremendous growth in the year include Living Room of Satoshi, and Cointree. Several more crypto companies are also moving to Australia to cater for the increasing demand. For example, the US financial giant Square recently bought the Australian fintech Afterpay.
Other than crypto companies, Bitcoin itself has also become more user friendly. Slow transactions were some of the concerns in the earlier crypto days. However, the platform has since introduced layer 2 protocol, Lighting Network, to ensure cheap, fast and private transactions.
With the scaling protocol, Bitcoin transaction speeds can now match those of Visa and other traditional financial service providers. This makes Bitcoin ideal for everyday transactions. Therefore, more Aussies will keep on embracing crypto payments. The same applies to other countries who are also looking at crypto transactions as the best alternative to fiat currencies.