June 17, 2022
Internationally the adoption of cryptocurrency is rapidly increasing, with over 300 million crypto users worldwide. In 2021 more than 10 billion dollars was processed in crypto by consumer-facing businesses. There is a significant increase in the utilization of cryptocurrency in countries like Ukraine, Russia, Venezuela and Columbia, where poor political conditions have negatively impacted the livelihood of millions. Many of these citizens (especially in light of recent events in Ukraine) have turned to cryptocurrencies such as bitcoin to safeguard their money, transport it with them, accept remittances and donations, and transact for daily necessities. In addition, there are also countries like El Salvador and more recently the Central African Republic that have adopted Bitcoin as a legal form of tender in order to bank the un-banked, send money home from abroad with low costs and secure an independent financial future for their countries.
In countries such as Canada and the USA, the utilization of cryptocurrency is also rapidly increasing as inflation is becoming a serious long-term issue. In May 2022, the US government reported that inflation had risen to 8.6 percent in the past year, the highest level of increase in four decades. Due to this economic shock more and more individuals are looking for alternative methods of saving. According to a recent global poll by financial consultancy deVere Group, more than 33% of millennials (age 26 to 42) and 50% of Generation Z (25 and below) would be happy to receive half their salary in bitcoin or other forms of cryptocurrencies. This rapid increase has led to a significant demand for large financial service companies such as Fidelity Investments to provide people with the option to invest in Bitcoin. Fidelity believes that “virtual currency creates real opportunity” and has created an ETF™ and Mutual fund.
In addition, business are adopting cryptocurrency rapidly. Cryptocurrency payments are 388 times faster and 127 times cheaper than traditional methods. These payment systems are decentralized, which means they exist on large amounts of networked computers connected to the internet—allowing records of ownership and transactions to be publicly available, offering a high degree of transparency. This enables people and businesses to perform transactions without a third party or intermediary for verification. In addition, this decentralized network is secured by cryptography, a method of encryption that allows for data to be securely exchanged between senders and receivers making it extremely difficult to falsify or hack.
As this innovative technology continues to empower millions, we will continue to see movement toward the mass adoption of cryptocurrency. The digital transformation of money has arrived, and given the rapid rate of global adoption, cryptocurrency is here to stay.