Physical stores are essential in the evolution of Bitcoin as payment, as a significant part of sales occur in those places. The volatility associated with cryptocurrencies has discouraged their use, but their price would stabilize if merchants accepted them as payment.
Few people buy goods with cryptocurrencies because transaction fees are high, and merchants do not accept them as payment. However, the global financial services company Morgan Stanley considers this situation has changed.
Morgan Stanley said that many stores and restaurants in the US would soon accept BTC as a payment method. The payment company Strike partnered with a point of sale provider to allow them to process transactions through the Lighting Network.
The financial institution stated that commercial associations with physical stores are crucial in the evolution of Bitcoin as payment. That is because a significant part of sales in the US occurs in those places rather than online platforms.
The volatility associated with commodities traded in Bitcoin has discouraged the use of cryptocurrencies. However, Morgan Stanley believes that the price of crypto assets would stabilize if merchants accepted them.
The fee for sending a BTC transaction on the Lightning Network is near zero. In other words, it is more convenient for users to make small-amount payments with it than with a debit card.
Morgan Stanley commented that there needs to be a variety of payment options since more brands are venturing into the Metaverse.
Thailand Bans Using Cryptocurrencies as a Payment Method
In March, the Thai SEC announced that the authorities would ban cryptocurrencies as a payment method from April 1st.
That is not an outright ban on trading or holding crypto assets, which are relatively popular in Thailand. However, the new regulations on cryptocurrencies hurt their use as an alternative to cash payment.
The Thai SEC said that alleged financial stability risks and money laundering concerns led to the ban on cryptocurrencies. However, they made it clear that the authorities see the advantages of the technologies behind crypto assets.
TripleA data indicates that Thailand occupies 14th place in the ranking of countries globally for the number of cryptocurrency users. Furthermore, the Asian nation was one of the first to start a Central Bank Digital Currency (CBDC) pilot project.
German Bank Commerzbank Applies for a Local Cryptocurrency License
In early 2022, German leading banking institution Commerzbank confirmed that it applied for a license to provide cryptocurrency services. That would be the first time a leading bank in Germany has taken a step that proves its interest in crypto assets.
Commerzbank confirmed to local media outlet Börsen-Zeitung that they applied for a crypto custody license in the first quarter of 2022. If approved, the bank could offer exchange services alongside the custody and protection of crypto assets.
The financial institution has over 18 million individual clients and over 70,000 institutional clients. A spokesperson stated that the transactions with cryptocurrencies would go to its institutional client base.
Since January 2020, the companies or institutions interested in offering cryptocurrency-related services in Germany must apply for approval from the Federal Financial Supervisory Authority (BaFin).
Until now, only four German companies have received approval from BaFin. The Federal Financial Supervisory Authority has also stated that over 25 applications from firms seeking to operate with cryptocurrencies are pending.
By Alexander Salazar
