Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Payments, Transfers, Rewards
Canada’s payment system needs more competition
Financial Post OpEd | | Mar 25, 2021
Insulating industry incumbents from competition keeps the cost of sending and receiving payments in Canada higher than it needs to be
What started as a vision half a decade ago is almost a reality: the Canadian payment system, which processed $55 trillion in 2019, is on its way to being decommissioned and replaced. But while Canada is closer to getting its long-awaited safer and faster payment system, fintechs are being left out.
Payment system modernization wasn’t just going to be a technology upgrade. It was also supposed to make the financial sector more competitive, putting fintechs that hold and move Canadians’ money on a more level playing-field with Canada’s biggest banks.
For more than 30 years, one of the biggest public policy questions in payments has been, “Who gets access to the payment system?” To this day, the theoretical answer is banks and other financial institutions. In practice, however, it has mostly been Canada’s biggest banks.
The Canadian Payments Act prohibits fintechs from accessing the system themselves, so they access it through banks. The problem with indirect access is obvious. Imagine having no choice but to do business with your competitor in order to compete with them.
See: Overview of how Canada is modernizing its core payments infrastructure
The Canadian payment system is essential infrastructure. Operated by Payments Canada, it consists of the Large Value Transfer System (LVTS) and the Automated Clearing Settlement System (ACSS). The LVTS processes wire payments, whereas the ACSS processes payroll, bill payments and debit payments at the point of sale, among other payments.
Despite the clunky names and arcane processes, Canada’s payment system essentially works like a spreadsheet. Payment industry insiders occasionally joke that the Canadian payment system is a “glorified calculator.” It’s the most important glorified calculator you’ve likely never heard of. When I pay you, or you pay me, money doesn’t exchange hands right away. It takes time for our banks to move the money from account to account. When funds do appear in either of our accounts in almost real time, our banks have usually just fronted us the money. They use the glorified calculator to keep track of what they owe each other before the money actually moves.
I liken it to the telecommunications industry. As the only ones with direct access to essential infrastructure, a handful of banks are in a privileged market position, just as a handful of telecom giants are. From that privileged position, banks resell their access to fintechs.
But there’s a big difference. In telecommunications, the CRTC works to make sure privileged market positions aren’t being abused. In payments, there’s no such thing.
Since banks resell their access to the payment systems to fintechs, many fintechs are at an unfair disadvantage when it comes to cost and service levels. The high price of indirect access makes it difficult for them to offer their tried-and-true services, let alone experiment with more innovative offerings. That they’re forced to go through banks brings more complexity and slower payments.
That’s if you can find a bank willing to partner with you. Some banks will outright refuse to, depending on your business model. Then you can either become a bank or leave the Canadian market. Becoming a bank under the more than 800-page Bank Act is just not feasible for many fintechs, who often start off doing only a fraction of what a bank does. So exit becomes the only option.
See: Penrose Report: Power to the People: Stronger Consumer Choice and Competition
Instead of creating a CRTC-equivalent in payments, the federal government was going to make the sector more contestable. First, it was going to pass new legislation to regulate fintechs that hold and move Canadians’ money — not regulate them as much as banks are regulated, but enough to safely give them access to the payment system. Then it was going to give fintechs the right of access by amending the Canadian Payments Act.
These changes were announced in Budget 2019. But it’s 2021 and we’re still waiting.
The obvious danger is that when the new system goes live next year, the result will continue to be a less competitive market. That doesn’t just hurt fintechs. It also hurts consumers and businesses. Insulating industry incumbents from competition keeps the cost of sending and receiving payments in Canada higher than it needs to be.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Visa is Working to Allow Bitcoin Use at 70 Million Stores
Bitcoin.com | Kevin Helms | Mar 17, 2021
Visa CEO Al Kelly anticipates that cryptocurrency could become “extremely mainstream” within five years.
He is working to position Visa in the middle of it should cryptocurrency take off. He further confirmed that Visa is working to allow bitcoin purchases, in addition to enabling the cryptocurrency to be used at 70 million stores where Visa is accepted.
In the Leadership Next podcast with Alan Murray and Ellen McGirt published Tuesday, Visa CEO Al Kelly talked about bitcoin and his company’s cryptocurrency strategy. Given the recent rise in the price of bitcoin, he was asked what it means for his credit card business.
See: Cryptocurrencies Aren’t An Alternative. They’re Here to Stay.
“I would like to divide crypto into two buckets,” Kelly began. “One is the more speculative asset” or “digital gold,” he explained, adding that he put bitcoin in this category. The CEO elaborated:
In that category, we are trying to do two things. One is enable the purchase of bitcoin on Visa credentials. Visa is [also] “working with some bitcoin wallets to allow bitcoin to be translated into a fiat currency and therefore immediately be able to be used at any of the 70 million places around the world where Visa is accepted,” Kelly added.
“The other category of crypto is digital currencies. There, we see a strong potential for those to become a new payment vehicle. In fact, it could be an accelerant in some of the emerging markets as we look around the world."
He proceeded to reveal that Visa is “working with lots of players” in this category. “There are about 35 different players we are working with,” he specified, clarifying that “These are currencies that are fiat-backed [stablecoins].”
See: Global cryptocurrency spending grows 300% in two years
His statement echoes what Visa explained in its Q1 2021 earnings call. “Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credentials to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally,” the company informed its shareholders.
“The thing about our business that I actually like is that we don’t pick winners and losers,” he described. “As you and I sit here and talk today, I don’t know to what degree cryptocurrencies are going to take off. Are we going to say in five years that it was a fad and it was not a big deal? Or is it going to be extremely mainstream? I’m not smart enough to know but what I am smart enough to do is make sure that our company is in the middle of it today so that if it takes off, we are in the middle of helping move that money.”
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Digital Payments in America – Scaling the Peak
The Economist | Mar 20, 2021
PayPal, Stripe and others are only just getting started
A LITTLE OVER a decade ago Patrick and John Collison founded Stripe, a company in Silicon Valley that helped other tech startups accept online payments. It has since outgrown them all. On March 14th the firm said it had closed a fundraising round valuing it at $95bn—three times its valuation a mere 11 months ago, and enough to make it America’s biggest-ever unlisted firm. Stripe is not the only company cashing in on the check-out business, as the digital payments revolution finally takes off in America.
Investors’ enthusiasm for Western digital-payments companies has been whetted by the pandemic (see chart). PayPal’s share price has jumped by 180% in the past 12 months. That of Square, an American rival, has more than quintupled; and that of Adyen, based in Amsterdam, has nearly tripled. The digital boom is luring credit-card colossuses and tech titans, such as Visa and Google, to online payments. Smaller startups, meanwhile, are carving out niches. Yet markets still love the four specialists: PayPal’s shares trade at 68 times earnings; Square’s, near 510. Why are investors so bullish?
See: Has COVID-19 made cryptocurrency more attractive for digital payment and investment?
The digital-payments industry is rather like a transport system. “Acquirers” connect the shop’s app or website to the payments infrastructure and check key details, including a buyer’s identity, probity or available funds, to authorise travel. The money then moves along the customer’s chosen type of “rail”: credit-card, bank-to-bank or mobile-wallet systems, run by distinct firms. Then come the refreshment trolleys—service providers, like buy-now-pay-later firms, that purport to make the payments journey more pleasant. Everyone takes a cut of the transaction along the way.
Three trends are helping propel the digital firms further. One is the rapid growth of e-commerce, which has been turbo-charged by the pandemic. Online-transactions volumes surged by 19% globally last year as locked-down consumers turned to the internet. And there is further to go: online payments accounted for just 45% of all retail payments tracked by Mastercard, a credit-card giant, in 2020. The second trend is the dash away from cash at bricks-and-mortar shops in favour of digital payments, which covid-19 has probably accelerated by about three to five years.
A final factor comes from increasing market share within online payments. For all of the specialists’ might, over half of digital-transaction volumes worldwide are still acquired by the captive, sluggish arms of banks, says Lisa Ellis of MoffettNathanson, a research firm. Since most lack global aspirations and e-commerce expertise, market share is bound to migrate to the online giants.
See:
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Accelerating winds of change in global payments
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Cryptocurrencies Aren’t An Alternative. They’re Here to Stay.
Such trends boost Visa and Mastercard, the dominant credit-and-debit card networks, too. Yet they run only one type of rail, whereas the four payment champions are mostly agnostic about which channel the money travels on. And the established card firms are also under attack from anti-trust watchdogs who worry that they make it difficult for merchants on their networks to process transactions through other, cheaper, alternatives. On March 19th shares in Visa fell after reports that the Department of Justice was investigating it.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Cryptocurrencies Aren’t An Alternative. They’re Here to Stay.
Fintech Confidential | CoinPayments | march 14, 2021
2020 is winding down and it’s been a hectic (and often tragic) time for so many of us around the world. Throughout the year, we’ve seen some industries struggle while others thrived. Out of this uncertain time, it’s important to note the incredible shift toward technology-enabled financial services. As a longtime payments and blockchain entrepreneur, I’m convinced we’ve reached a real moment in driving awareness and adoption in digital currencies as more people live their lives increasingly online.
This year alone, we’ve seen massive progress in the multi-billion dollar crypto market that can no longer be ignored: bitcoin soaring above US$15,000, leading fiat payment processors jumping on the crypto bandwagon and rising use among people from every part of the world.
It’s called the “future of money” for a reason. Cryptocurrencies have cemented themselves as a means of exchange for our global, digital economy.
Better regulatory frameworks, better processes
Historically, one of the biggest barriers to entry for cryptocurrencies has been mistrust and a lack of knowledge among regulators. It’s understandable. With more than 2,000 different types of cryptocurrencies now on the market, ambiguous and unclear guidance from governments has resulted in slow institutional adoption. But that tide is turning.
With broader global adoption and a better understanding of the technology behind cryptocurrencies, regulators are now equipped to build solid frameworks that actually work for the crypto community.
See: Crypto mass payments is best retail option; report suggests
Take KYC (Know-Your-Customer) processes as an example. Early on, there was a strong perception that KYC would only hinder (and not help) sales because it added another layer to the buying process. Instead, we’ve seen the opposite through streamlined and straightforward KYC.
That is why we have put security and transparency at the heart of our agenda to build a fully compliant platform and more importantly, to pave the way for mass adoption in a sustainable way.
The crypto community drives choice
Freedom of choice is a significant part of the crypto community and it has shifted the balance of power into the hands of the consumer. At CoinPayments, we work hard to meet that need by supporting more than 1,900 cryptocurrencies. We feel it’s a critical part of how we drive adoption among an increasingly diverse user base.
Just look at this chart below. While bitcoin still represents approximately 85% of transactions, we are seeing an increased interest in stablecoins, both globally and in the U.S. In APAC, 50% of CoinPayments merchant transactions were in stablecoins over the last year.
Source: Coinpayments
Fortunately, major fintech players including PayPal, Square, Revolut, and Robinhood are taking notice, and upstarts like Swyftx are taking advantage. Even Visa is moving into the space with its Ternio and ZenGo partnerships. This is the type of traction that will drive a rapidly rising level of adoption.
See: FINTECH FRIDAY$ Podcast (EP.1-Jul 20): with Samir Bandali of CoinPayments
The next adoption wave
It’s only a matter of time before the biggest ecommerce platforms like Amazon and eBay embrace digital currencies. This is the moment we’re all waiting for within the payments industry and it’s happening at a lightning-fast pace. It’s hard to believe credit cards took 50 years to gain mass market appeal while bitcoin is just 11 years old.
Take this chart from a recent report on CoinPayments merchant activity:
This is the story of cryptocurrencies as a form of payment right now. Will the trend always be up? Likely no, but we have a long way to go before it slows. Continue to watch for major announcements around new ecommerce platforms and brands opening their businesses to digital currencies.
The importance of education and advocacy
While the case I’ve laid out for mass adoption of cryptocurrencies as a form of payment seems inevitable, it’s important to note that this is a movement that requires continuous support and education.
See: Has COVID-19 made cryptocurrency more attractive for digital payment and investment?
In the coming years, we’ll see regulatory challenges and adoption hurdles, which is why we’ve made advocacy a priority at CoinPayments. That includes regular innovation with our own products and services as well as industry-focused initiatives like with NCFA Canada, and our recent partnership with Celo Alliance which is focused on driving financial inclusion through cryptocurrencies. Through collaboration, we’ll work directly with leading charitable organizations to drive awareness and adoption in developing economies.
In a world where 1.9 billion adults remain unbanked, don’t underestimate the importance of financial innovation to help businesses and individuals realize their full economic potential. That underlying need is exactly why we think cryptocurrencies are no longer a fringe solution.
About CoinPayments
CoinPayments is an integrated payment gateway for cryptocurrencies. It is the preferred cryptocurrency payment platform for merchants like Overstock and Quantfury, as well as ecommerce platform providers like Shopify and OpenCart.
This article appears as a featured article in NCFA's digital magazine, Fintech Confidential (Issue 3). Click to read the latest thought leadership, insights and trends about Fintech in Canada:
Checkout NCFA's digital magazine, Fintech Confidential (Issue 3, Dec 2020) --> here
NCFA Announces 7th Annual FFCON21 Digital ‘Breaking Barriers’ FinTech Conference
NCFA Canada | FFCON21 Team | March 11, 2021
FFCON21 to connect HR talent and explore accelerated Fintech trends and innovations paving the way to mass adoption and scale
TORONTO — March 11, 2021 — The National Crowdfunding & Fintech Association (NCFA), organisers of Canada’ foremost Fintech conference, is pleased to announce the return of FFCON for its 7th consecutive year. The annual FFCON Digital Event, held in association with Toronto Finance International (TFI), will take place May 11-13, 2021.
Building on the success of previous conferences, this year’s event -- titled ‘Breaking Barriers’ -- will bring together an international community of leading voices in fintech, digital banking, tokenization, blockchain, CBDCs, digital identity, AI, capital markets innovation, EDI (equality, diversity and inclusion) and sustainable, open, and alternative finance.
“Fintech is evolving quickly and breaking barriers,” said Craig Asano, Founder and CEO of the National Crowdfunding & Fintech Association of Canada. “Fintech is no longer niche -- it is a permanent technological evolution that is changing the world of finance by high growth fintech companies and incumbent financial institutions. It’s rewiring financial services for the new economy and setting new standards that also demand new regulations. Most importantly, it’s about improving access and delivering better financial products, services and outcomes for everyone especially consumers and small to midsize enterprises (SMEs).”
The theme of FFCON21 reflects the growth and challenges that the Canadian Fintech industry has had to navigate through to foster scalability and mainstream adoption, made all the more complicated through the disruption caused by Covid-19.
“Our Fintech ecosystem has become a great strength in the greater Canadian innovation landscape. COVID-19 has accelerated the pace of change in the industry and highlighted the important role digital innovation plays in the competitiveness of the financial services sector. Rapidly changing consumer habits and ways of delivering products and services offers a significant opportunity for Canadian Fintechs" Jennifer Reynolds, President & CEO, Toronto Finance International
Beyond covering important fintech topics, FFCON21 will offer an engaging and fast-paced interactive agenda, including investor speed dating, sports-inspired Fintech Draft pitching and demo competitions designed to identity and feature emerging fintech stars, debates, round table discussions, digital ebooths and virtual expo, 1-on-1 networking opportunities and unique experiences. Delegates and partners can build their knowledge base, launch or scale an idea or collaborate digitally with visionary entrepreneurs and investors.
New to FFON21 this year, organizers are adding an HR fintech talent marketplace to connect anyone seeking new opportunities with high growth companies, and a ‘deep dive’ masterclass series on the topic of decentralized finance as part of its quarterly Global Fintech Now program for VIP passholders.
The multi-day event will run from May 11-13 inclusive with daily content to span feature themes of Digital Innovation and Breaking Barriers, Creation & Growth and Global Future Forward. Updates to the evolving programme and speaker lineup can be found on the FFCON21 website.
Registration Now Open
Registration for FFCON21 Breaking Barriers is now open with special early bird rates for delegates, exhibitors and startup packages available for a limited time. Tickets can be purchased at https://fintechandfunding.com/tickets/.
Useful Links
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About the NCFA
The National Crowdfunding & Fintech Association (NCFA) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain and cryptocurrency, Regtech, and Insurtech sectors. To learn more about NCFA visit www.ncfacanada.org
About Toronto Finance International
Toronto Finance International (TFI) is a public-private partnership between Canada’s three levels of government, the financial services sector and academia. TFI’s mission is to lead collective action that drives the competitiveness and growth of Toronto’s financial sector and establishes its prominence as a leading international financial centre. For more information, please visit: www.tfi.ca
About FFCON
FFCON21 (Fintech and Financing Conference) is an annual conference hosted by Canada’s National Crowdfunding and Fintech Association (NCFA). Now in its seventh year, FFCON21, held in association with Toronto Finance International, will bring together professionals and innovators in fintech, open banking, digital identity, blockchain, cryptocurrency, AI, capital markets innovation, sustainable and alternative finance.
Further information about the conference can be found at www.fintechandfunding.com
FFCON21 Contacts
Craig Asano
Founder and CEO, NCFA
casano@ncfacanada.org
(416) 618-0254
Partnership Inquiries
Lauren Linton
Advisor, NCFA
lauren@ncfacanada.org
(416) 569-4349
Media Contact
The Top Floor Public Relations
Michele McDermott-Fox
michele@thetopflooragency.com
(905) 379-1893
David Lewis
david@thetopflooragency.com
(905) 541-5699
Ripple Pilots a Private Ledger for Central Banks Launching CBDCs
Ripple | | March 3, 2021
Ripple is piloting a private version of the public, open-source XRP Ledger that provides Central Banks a secure, controlled and flexible solution for the issuance and management of digital currencies.
With over 80% of Central Banks actively exploring some form of sovereign-backed cryptocurrency, new Central Bank Digital Currencies (CBDC) are bound to emerge. Each new CBDC will have unique goals driven by the specific market challenges and opportunities of its country, unavoidably leading to different technologies and implementations — leaving the world with an array of CBDC solutions.
CBDC Challenges
Distributed ledger technology will be the basis for most CBDCs, just as it is for today’s cryptocurrencies. While Central Banks can tap into existing blockchains to get CBDCs up and running quickly, most ledgers are not built for payments and cannot handle the volume of transactions that a successful retail CBDC will require.
Most blockchains are public ledgers, visible to all and updated by a broad network of validators. A Central Bank requires more transaction privacy and control over its currency than a public ledger can offer, so will most likely opt to create a CBDC on a private ledger that can also operate at the required scale.
See: Canadian researchers develop CBDC digital currency proposal for Bank of Canada
Additionally, interoperability – the ability for a private ledger to connect with today’s existing global financial infrastructure, as well as other CBDCs and other digital currencies– will be critical. In fact, in its 2021/22 innovation program, the Bank for International Settlements identified interoperability for cross-border payments as a major priority for CBDCs.
The CBDC Private Ledger
The CBDC Private Ledger is based on the same blockchain technology that powers the XRP Ledger (XRPL), which means that the CBDC Private Ledger is built for payments.
This also means the CBDC Private Ledger is designed for issuing currencies, with over 5,400 currencies issued on the XRPL over the past 8 years, including its native digital asset XRP — which can be leveraged as a neutral bridge asset for frictionless value movement between CBDCs and other currencies.
Moving money on the CBDC Private Ledger will be cost-effective, reliable and close to instantaneous. Transactions can also happen at volumes required by Central Banks. The CBDC Private Ledger will handle tens of thousands of transactions per second (TPS) initially with the potential to scale to hundreds of thousands TPSs over time.
Transactions on the CBDC Private Ledger are verified by the same consensus protocol used by the XRP Ledger, which is far less energy intensive, and therefore less expensive and 61,000 times more efficient than public blockchains that leverage proof-of-work.
See: The Good, the Bad and the Ugly of Central Bank Digital Coins (CBDCs)
In addition to leveraging the XRP Ledger technology, the CBDC Private Ledger is also supported by RippleNet technologies, and the Interledger suite of protocols to enable ultra-high throughput use-cases such as micro-payments.
The CBDC Private Ledger meets even the highest of security standards for Central Banks with each having complete sovereignty and ability to customize based on their own unique privacy and policy requirements. The core technology behind this new CBDC Private Ledger has been running for more than 8 years without incident and with billions of dollars of value transacted everyday.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Has COVID-19 made cryptocurrency more attractive for digital payment and investment?
Toronto.com | Veronica Appia | Feb 25, 2021
As countries continue to devalue their currency amid COVID-19, cryptocurrency is becoming more appealing to investors. - Pexels photo
Experts weigh in on Bitcoin, crypto resiliency
In an economy deeply impacted by the COVID-19 pandemic, citizens and businesses have been experiencing financial hardship for months and governments have been using stimulus money to create supports and aid in economic recovery.
See: Privacy laws might prove to be a blessing in disguise for crypto
Prime Minister Justin Trudeau announced $100 billion to be spent over three years, beginning this year, in an effort to bolster the current state of the economy.
Some recipients of stimulus checks are choosing to invest money in retirement accounts like this gold backed IRA company that would help save gold and silver funds in a lifetime.
Others feel differently about giving away stimulus money in such large amounts since it devalues a country's currency, said Henry M. Kim, an associate professor of operations management and information systems and co-director of the BlockchainLab at Schulich School of Business.
This, in turn, creates a case for certain types of cryptocurrency, such as Bitcoin, to become more attractive.
"Bitcoin doesn’t act like money. What’s winning out is the notion that Bitcoin is digital gold," Kim said. "And Bitcoin, as volatile as it is, is not a currency that central banks are devaluing."
For this reason, he said, Bitcoin is great to speculate on at the moment.
See: Future of Crypto Market Infrastructure: The Role of Custodians and Exchanges
Earlier this month, Tesla CEO Elon Musk purchased $1.5 billion worth of Bitcoin and announced plans to start accepting Bitcoin as payment for certain Tesla products, causing Bitcoin prices to surge. One Bitcoin is currently worth just under $50,000 U.S.
"I think it makes Bitcoin seem attractive, even more than it was before, and seem much more long-lasting," Kim said.
Jason Butcher, CEO at CoinPayments, a platform that allows merchants to accept cryptocurrency payments, said crypto payments are becoming increasingly more appealing to those with speculative interest and those who perform transactions.
"Those looking for cryptocurrencies as a means to acquire (and sell) goods and services are really the driving force behind this new and flourishing crypto economy," Butcher said. "Crypto payments provide a secure, quick and low-cost way to send and spend value online. It is cheaper and more seamless than traditional providers, and that is why people are starting to notice."
His merchants use crypto payments for a wide variety of products, including electronics, groceries, luxury items, vacations and more.
See: How Cryptocurrency is changing Fintech
Kim said while there is not a lot of people who can currently buy with crypto, as many merchants have not made the switch yet, some businesses and municipalities are starting to get more innovative.
"As of about a year ago, Richmond Hill and Innisfil actually began to accept property tax in Bitcoins," he added.
Regarding the effect COVID-19 has had on cryptocurrency's appeal, Kim said that looking back to SARS 2003 can provide some insight.
"In China (at the time of SARS) people were very afraid to pay for things in cash and hand out things that give up possible germs. That, in part, (paved the way) for the development of WePay and Alipay in China," he said. "There was a whole bunch of other factors, but certainly SARS then was a factor and if you think about it, those are not exactly digital currencies, but they are similar."
Butcher agreed.
"Today, people are looking at more efficient and effective ways of sending value around the world while limiting the possibility of spreading infection through the use of physical currency or devices," he said "So, it’s pretty clear that the opportunity to view cryptocurrencies as a possible solution has helped."
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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