Crypto’s “Killer Application” Is Here (Kind Of)
These two use cases are concrete examples of how crypto can improve people’s lives today.
Two Crypto “Killer Use-cases” that are here (kind-of):
1) Bridging the transaction and settlement gap: We've had instant transactions for some time now, and the scale has significantly accelerated with the rise of e-commerce. We use our cards for online payments, log into our online banking, and make transfers - and that's where many believe the transaction ends. However, the backend of our financial services has seen minimal change over the past five decades. While transactions occur instantly, settlements can take days. For merchants, receiving funds from card processors can be a time-consuming and cash flow nightmare. If we move up the value chain to banks, the reconciliation process on the backend often takes days or weeks. This is where crypto showcases its first killer application - instant settlement. When sending stablecoins or bitcoin, the transaction and final settlement happen instantly. It stands to reason that tokenized instruments will become the preferred settlement solution. Related Note: Citi Bank just announced the most ambitious use of tokenized assets, where client deposits will be tokenized and can be sent and settled on-chain (on a private chain but its a start - I think the future will be permissioned assets on a public blockchain).
2) Protection from failing fiat currencies: It's important to acknowledge the pressing issue of inflation. With over 160 inflationary fiat currencies in existence worldwide, they are all heading in one direction: toward diminishing purchasing power. The pace may vary, but the trend remains consistent. If you're fortunate enough to earn in U.S. dollars or a currency tied to it, it's easy to overlook this concern. However, it's crucial to recognize that hyperinflation has struck 55 times since 1920, with many countries grappling with double or triple-digit inflation rates today. In our region, both Egypt and Lebanon have witnessed staggering currency devaluations of over 50% and 90%, respectively, within the past two years! It's nothing short of tragic to work your entire life only to watch your hard-earned savings vanish through no fault of your own.
Crypto is the first international asset class that is accessible by the masses to anyone with a smartphone and internet connection. If you are in Egypt or Lebanon, the safest way to protect your wealth is to buy digital dollars (stablecoins - USDC is a good example). And if you can afford bitcoin’s short-term volatility, you save in bitcoin. It's insanely easier than trying to open an off-shore USD account (like many rich people in failing countries do to protect wealth).
These two use cases are concrete examples of how crypto can improve people’s lives today. Our role as a company is to increase awareness and provide users with safe access to digital assets. The killer app for crypto is almost here, and the masses will soon become aware of it.