The integration of digital assets into the financial ecosystem has been gaining momentum, but the adoption of these assets by merchants has stagnated. According to Kateeson Thathiah, Group CFO of the XBD group, the main obstacle to merchant adoption is not a lack of technological progress, but rather a significant gap in education and a disconnect between what digital asset brands promote and what merchants actually need.
The Gap in Education and Trust
Thathiah believes that the lack of clear education, practical demos, and trust in new technologies is hindering merchant adoption of crypto payments. Stable coins, which offer faster settlements, reduced fees, and protection against volatility, are particularly suitable for cross-border payments. However, the industry’s focus on hype and competition rather than real trade pain points is slowing down adoption.
The establishment of trust through education, government confirmation, and proven case studies is crucial for mass merchant adoption. Thathiah notes that the conversation between the industry and merchants has been too focused on technological change, rather than shifting the way of thinking for business owners. The emphasis on customer benefits, rather than just the advantages of the technology, is essential for driving adoption.
The Role of Stable Coins
Stable coins play a critical role in reducing the risk of fluctuations in value and maintaining the advantages of blockchain transactions. They offer faster settlements, reduced fees, and protection against volatility, making them particularly suitable for cross-border transactions. Thathiah believes that the ability to receive and pay funds quickly is a significant advantage for merchants, and stable coins can help achieve this.
The growth potential of stable coins is immense, and Thathiah predicts that the digital infrastructure will continue to progress over the next three years, leading to greater merchant adoption. However, the industry must prioritize education and clear communication to unlock new growth opportunities for both companies and the broader digital financial ecosystem.
Building Trust and Driving Adoption
To drive merchant adoption, the industry must build trust through education, government confirmation, and proven case studies. Thathiah believes that authorities, such as the Competition and Markets Authority (CMA) in the UK, play a crucial role in promoting stable coins as the future of money movement. However, there is still an “old mentality” and a disconnect between traditional banks and authorities that must be addressed.
The future of payments is digital, but new technologies alone will not drive merchant adoption. Thathiah emphasizes that building trust is essential for driving adoption, and this requires a uniform effort to overcome the hype and focus on the practical, tangible advantages for merchants. By prioritizing education and clear communication, the industry can unlock new growth opportunities and drive mass merchant adoption.
Read the full article on merchant adoption of digital assets at https://crypto.news/merchant-adoption-of-digital-assets-has-stalled/
Kateeson Thathiah is the Group CFO of the XBD group, an accomplished financial manager with 20 years of experience in financial services. He controls the financial strategy of XBD and the global expansion of payment, having previously worked at Etoro as a UK CFO and global payment director.
