Crypto. We do anything to get our hands on it. How good does it sound when you get to drop “I use crypto” into the conversation? You literally see the room divide before you like the parting of the Red Sea. Either they love it or hate it. Some people’s faces light up with the chance to speak about their latest triumphs and how they’re weathering out the current crypto storm, whereas others narrow their eyes and purse their lips at the opportunity to gloat and rub salt in the wounds. How they cannot wait to leave your crypto progress, dreams, and ambitions dashed and destroyed against a background of collapse and destitution, albeit not possessing any more knowledge than gossip and a handful of hyped-up news stories. It would seem that the current drama has done nothing to defrost Brit’s views as it was reported as late as July 1 that a third of Brits continue to believe that it’s just one big Ponzi scheme. The crypto crash has, of course, seen a lot of turmoil, uncertainty, and in some cases, profits nose dive. Yet, for any avid investor, they’ll know that drops, dips, and crashes come and go with any market, (we all remember the global crash of 2008, right?) Moreover, despite the “crash,” Bitcoin is back to December 2020 levels. As always, it’s easy to dote on problems and ignore the progress made completely.
A big issue for many is once they’ve taken the plunge and purchased their crypto, buyers are often left with a burning question: what do I do now? Of course, seasoned traders and investors will have a steller plan put in place, yet it is a question worth asking. Once we’ve bought it, what can we actually do with cryptocurrency? I can already anticipate the cries of “spend it” — duh! However, as we know in life, things aren’t that simple. In this article, I’ll be taking a look at whether and how payment systems and POS in traditional brick-and-mortar stores and businesses are changing to accommodate the new currency on the block. I’ll also be following up on the UK government’s progress regarding its launch into crypto and whether Blighty comes up all and mighty.
What a load of stuff and nonsense!
We live in an increasingly technical world where electronic payments are rapidly becoming the norm. The pandemic pushed this into overdrive and now the thought of not being able to pay by card leaves many rolling their eyes and sighing with frustration. Yet, in the UK many people still get cold feet at the thought of not having something physical that they can hold in their hands. Of course, there are no physical bitcoins (despite the conclusions many people have come to as a result of the Bitcoin coin image). The question: “Can I go into a shop and pay with Bitcoin” is relevant, although a lot of the time it’s a slight at the currency’s legitimacy. Whether or not a business accepts Bitcoin depends on that particular business, yet there are sites available that provide this information. This can be tiring, frustrating, and, ultimately, what puts people off even inquiring about the possibility to pay with Bitcoin, or any other cryptocurrency for that matter. The view that this currency is nothing more than magic beans is hindering its mass adoption in day-to-day life. After all, if brick-and-mortar stores do not accept cryptocurrencies, is there really much point in having them? Well, to cut a long story short — yes!
Easier said than done
There are some locations that have started accepting Bitcoin payments. BitPay offers users a way to purchase goods with Bitcoin. Honestly, despite being a little long-winded, the payment process isn’t that hard to understand. Once selecting Bitcoin as a payment method, the app converts the GBP value of their order to Bitcoin using the latest exchange rates. Once calculated, the user has 15 minutes to accept the rate displayed and make the payment either by scanning their QR code or transferring their bitcoins to the vendor’s wallet address. Not too painful, is it? Other forms of payment fall a bit flat as it involves buying gift cards. Bitrefill allows customers to do this, providing them with an opportunity to convert crypto for fiat and then use it. Unfortunately, due to the low amount of businesses offering crypto as a legitimate payment method, “you have to either go to a middleman or cash in on the cryptocurrency to make real-world payments.” A groundbreaking move came in February 2022, with the introduction of the CoinJar Card, which allows users to load up their card with cryptocurrency and use it at any store or location that accepts Google Pay or Apple Pay. Of course, you buy/sell at the rate offered by CoinJar and it isn’t direct crypto for goods. But it’s still a massive step in the right direction!
The end of an era?
The UK High Streets have been suffering as a result of rapid online growth. Online retail sales account for 28.9%, whereas it is predicted that by 2023, online shopping sales will grow by 34.5%. A solution to the dwindling sales in physical stores is opening omnichannel capabilities with the ultimate aim being to bridge the gap between online and offline stores. This is precisely why crypto will continue to play a crucial role in society. Brick-and-mortar stores will eventually catch up and adapt to what’s going on in the digital world. Its very existence depends on it. As I wrote earlier, sites have even been set up detailing stores that accept Bitcoin, and the list is growing day by day.
You can take a horse to water, but you can’t make it drink!
As mentioned above, the process for paying with crypto really is not that complicated and as the technology’s capabilities smooth out, it’ll become more commonplace. In a few years’ time, we will look back at such confusion and laugh. I remember in 2010 trying to pay for shopping that came under £10 with a card and the look of disgust on the cashier’s face. I hate to imagine the reaction I would have received if I’d tried to pay for a pack of chewing gum — no doubt there’d have been a riot. My point is that things have changed leaps and bounds since then. Not being able to pay with a card is now something inconceivable. Not accepting Apple Pay is also another anomaly. We’ve accepted all these forms of payment due to one main reason: convenience. Make things too complicated and nothing will change. Yet, as I’ve just discussed above, the procedure isn’t as excruciating as one may think. So, why all the fuss and palaver? Well, that’s exactly what we do best. As I mentioned in my previous article, we Brits like what we like. After all, tradition reigns supreme (we still have shops that sell DVDs!) and our government is currently weighing up whether or not to reintroduce imperial measurements. Why do I need your kgs and cms, when I’ve got inches and feet?! More to the point, you get more for your money when you drive in miles! The real issue is that this mentality is the stumbling block that stands in the way between Britain championing the crypto scene, and falling into obscurity.
The Emperor’s New Clothes
Now, we turn to Britain’s progress with its plans to dominate the crypto scene. Well, I hate to be the bearer of bad news, however, little, if anything, has actually happened regarding regulations in the UK. Even Phillip Hammond, who was the UK’s Chancellor of the Exchequer from 2016 to 2019, commented that “I feel that the UK has missed a trick.” Echoing similar messages from business leaders, Hammond continued that the sheer lack of rules, regulations, and direction, left the industry in the dark, with no idea of which way to turn. Moreover, questions regarding crypto’s safety have come under fire as UK conduct regulator, Financial Conduct Authority, published on its site that users “are unlikely to have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS) if something goes wrong.” They continue, stating that “if you invest in cryptoassets, you should be prepared to lose all your money.” In turn, this leads to heightened speculation, plus with the ongoing market crisis, you have yourself an ideal recipe for apathy. Yes, that’s right. Why bother?
Hammond makes a good point and seems to share what is a growing sense of frustration with the British government and their crypto potential.
Come hell or high water
To cap off what seems like a pretty dire assessment, Binance, the world’s biggest crypto exchange isn’t even permitted to operate in the UK. This clearly shows the physical manifestation of how difficult it is to do business in the UK. If it’s this challenging to get permission to do business, then what’s it going to be like actually setting up and running the said business? Do we really think crypto investors, with the choices of sunny Dubai or tech-savvy Singapore at hand, will really trade that for the gray skies of Wolverhampton? It doesn’t quite have the same appeal — to put it mildly. Of course, legislation can take months, if not years, to be passed. Maybe I’m being too harsh? Maybe not. In times of crisis, when the nation needs to push through and pull out all the stops, Boris Johnson’s Churchillian rhetoric always comes to the fore. This is post-Brexit Britain! Gone are the shackles of the EU, we bid adieu to the continent and put up the walls around our island, defiantly declaring that “Britain is open for business!” At the time of writing, the government is in turmoil, with 50+ resignations and Johnson’s announcement that he’s quitting the role of Prime Minister, but intends to act as “Caretake Prime Minister” until fall. This is unlikely to result in any major pieces of legislation being passed and the Conservative party will have their minds focused on selecting their next leader. Moreover, whilst they’re busy putting out the fires in Westminster, what’s going to happen to crypto regulations? Will they remain at the forefront and receive the attention they need in order to make Britain’s aspirations a reality, or will they simply fall to the side? As is always the case, once the fanfare dies down, you’re left with bluster, extol, and broken promises. None of these factors bode well for the UK’s crypto ambitions.
