Expanding Crypto’s Role in Daily Payments: Beyond Lugano

Convenience tends to take precedence over efficiency when it comes to financial transactions. This is why not everyone uses cryptocurrency, even though it offers more options and lower costs. The Swiss city of Lugano is a prime example of how cryptocurrency can be embraced by its citizens. Over 15% of Lugano’s population use the city’s LVGA stablecoin on a daily basis to pay bills, make purchases, and access online services. This digital revolution begins with a simple click.

Traditional financial services are still limited to a privileged few in developing countries. While only 6% of adults in the United States are without a bank account, that number exceeds 52% in Africa. Cryptocurrency has yet to gain the same level of importance as traditional payment systems in terms of household payments, but its acceptance is growing. Major companies like Wikipedia, Microsoft, and Google already accept Bitcoin as a form of payment.

In Lugano, residents can even pay their taxes using cryptocurrency. They simply scan a QR code on their bill and select a digital wallet for payment. The city has also collaborated with Bitfinex to enable over 400 merchants to accept digital assets. The goal is to increase this number to 2,000 stores in the future.

Crypto adoption is not without its challenges, as people often fear the unknown. The forecasts are promising. Juniper Research estimates that the global usage of digital wallets will reach 75% by 2025. A 2022 study showed that 36% of respondents were willing to receive their salary in cryptocurrencies.

The recent approval of spot Bitcoin ETFs in the U.S. marked a major milestone for crypto integration in the financial industry. This step towards legalization instills confidence in ordinary users and demonstrates the importance of digital assets in progress. The involvement of institutional players like MicroStrategy, Square, and Tesla further fuels credibility and opens the door for wider adoption of blockchain-related services.

As the crypto industry expands, new products, payment methods, and technologies emerge. Crypto regulations can lead to a stronger relationship between crypto exchanges and banks, enabling users to arrange loans in the form of their preferred altcoins. Financial institutions may need to adapt and resemble exchanges to accommodate this change.

Decentralized finance (DeFi) platforms such as Polygon, Archblock, and Curve Finance offer high-quality services with low fees, bypassing traditional financial intermediaries. The history of financial instruments demonstrates the unexpected uses of new technologies. The evolving regulatory landscape and increasing adoption indicate that crypto will play a more prominent role in everyday payments, revolutionizing the way finance is organized.