Crypto payments are becoming more popular – especially after the bull run of 2021. Millions of merchants around the world are now accepting crypto payments through direct and indirect integration. Even big companies have jumped on the bandwagon.
However, encrypted payments are still at a very early stage. In most parts of the world, users cannot pay for goods and services with cryptocurrencies. However, Ethereum founder Vitalik Buterin expects that to change soon.
Crypto goes mainstream
In an interview, Ethereum founder Vitalik Buterin shared his thoughts on crypto payments and how fast he expects them to grow. The programmer was speaking during a session at Blockchain Week Korea 2022, which started on Sunday.
According to Buterin, encrypted payments will become mainstream and the reason for that is the upcoming upgrade of Ethereum.
This is called “The Merger” and is expected to happen sometime in September. It aims to make the Ethereum network faster and cheaper.
Buterin expects the network upgrade to reduce Ethereum fees to as low as $1 once the upgrade is complete. This is to be achieved through improvements in the efficiency and accessibility of the cryptocurrency, according to Buterin.
The Ethereum developers have been working on the update for about two years. Buterin also emphasizes this in his speech and mentions that roll-up is part of the planned developments to make the network faster and cheaper.
Ethereum is supposed to become better for everyone
The fee structure that Vitalik Buterin highlights in his speech is one of the main obstacles to the mainstream adoption of crypto payments. Well, for larger transactions, a $20 fee may be insignificant. But the problem arises when a coin like ETH needs to be used for smaller payments like everyday purchases.
Buterin points out that such transactions are not accessible to people in low-income countries. The Crypto Enthusiast:
“Many people around the world are already using cryptocurrencies for international payments. There are also many options for encrypted payments for low-income countries with the advantages of digital technology – efficiency and security.”
For that reason alone, restructuring the network makes sense – leaving room for cheaper transaction fees that exceed the cents. Buterin expects transaction fees to drop to 0-25 cents after the roll-ups are implemented.
Text credit: Bitcoinist
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