Cryptocurrencies were initially developed as an alternative to the traditional financial payment system. However, due to different drawbacks and technical obstacles, these currencies are yet to realize the dream of its adoption as a system of payment.
According to an analysis published by cryptocurrency exchange Deribit, the cryptocurrency companies are working consistently toward the adoption of features offered by traditional banks.
A significant number of companies in the crypto field have already been adopted some of the features that most of the traditional financial system offers to their customers. The crypto companies are attempting to refine these features and make it more appealing to the customers with the intention of its mass adoption.
Celsius, a leading crypto platform already started offering a luring 8.1% APR of deposits of Bitcoin which is highest in comparison to the rates offered by traditional financial institutions. Its loyalty program allows investors to earn interest more than the existing banks provide to their customers. Moreover, this crypto lending platform expanded its service area outside of the United States and Japan.
Another crypto lending Startup BlockFi announced that its users can earn compounding interests and also trade assets backed by the loan. This higher interest rate has driving mass adoption of features of the traditional banking system and making it enticing for customers to move towards crypto-backed platforms. Despite the higher interest rate, the crypto lending platforms are seeing a positive growth trajectory and considerable earning.
In this effort to bring more customers through the use of features of traditional banking systems, the crypto platforms have slashed their exchange fees which is one of the repelling components for existing banking systems as well. The crypto companies are trying to eliminate the exchange fees to compel more retail investors to adopt and invest in cryptocurrencies.
According to a Bloomberg report , zero-fee trading in crypto exchanges is just around the corner. This would be a significant change in the attempt toward the adoption of features of the traditional trading system. Although with low or zero trading fees, the crypto companies will likely earn a small amount of revenue, it will drive more users to take advantage of crypto trading.
Despite, tremendous efforts of the crypto community in making crypto available for use by common people and adoption of this technology as a payment system, a report published by IE university’s center for the governance of change states that cryptocurrencies are far behind achieving the goals envisioned by its founders. According to this report, the cryptocurrencies are still not considered as money and do not carry any worth as an asset. Although this may be true, the crypto community is working tirelessly in evolving this technology and driving its adoption on a large scale. The intended use of traditional banking features is a major step in realizing the dream of cryptocurrency pioneers.