According to fintech entrepreneur Michael Zetser, a useful way to implement the adoption of cryptocurrencies is through utility payment services. And this is what one Bitcoin provider is trying to do. BitPay, which is the largest provider of Bitcoin and other cryptocurrency tokens in the world, has rolled out bill payment services. With this new service, crypto holders will be able to pay their bills directly using their crypto wallets. This, in turn, offers a much more streamlined use of cryptocurrency.
For many members of the cryptocurrency community, this move is considered to be a major step in the right direction. That’s because it will allow users to pay up their bills, whether they’re utility, phone, or other kinds of bills, without a typical bank account. While Michael Zetser isn’t a die-hard crypto enthusiast, he admits that presenting more practical use cases for cryptocurrency is a great way to increase adoption.
A New Bill Payment Solution for the Unbanked
Many people agree that it’s quite difficult for them to pay everyday bills when they don’t have a bank account. In this case, cryptocurrency provides a useful solution for the unbanked community. The CEO of BitPay has explained that the platform’s customers are among the most prominent crypto spenders across the world. Therefore, the new service is a complete game-changer in the world of crypto-oriented solutions.
A deeper dive into these services shows that BitPay has collaborated with Method Financial to make sure that BitPay users get the latest information on their accounts and current balance. Recently, Method Financial made a statement saying that they’re quite proud to team up with BitPay. The collaboration will help crypto users expand their use cases for tokens and improve their financial health in the long run.
Previous Options To Pay Bills With Crypto
But considering this recent news, it really made people wonder whether or not the option was previously unavailable for crypto holders. While BitPay has finally popularized the concept, Micahel Zetser believes that crypto users already have the option to use their holdings for bill payments.
One example includes crypto debit and credit cards. Companies like Coinbase and Binance, both of which are popular crypto exchanges, have rolled out their own versions of crypto-enabled debit cards. So, if users have any cryptocurrency in their online account, they can access it through their debit card and use a payment processing platform like Visa or Mastercard to complete a transaction with the local utility company.
BitPay’s Feature Comes Amid Growing Concerns Surrounding Crypto
BitPay’s latest feature comes at a time when the cryptocurrency sector is on its last leg and is in desperate need of a revival. This comes after the start of a major crypto winter, which was the result of multiple crypto-related companies collapsing. It included the likes of FTX, Celsius, and more. In fact, recent news shows that Binance’s supposedly compliant subsidiary, Binance US, is in hot water over legal and operational issues.
Despite being ordered by federal courts to provide proper accounting statements, the company has failed to show up. When Binance US was initially asked to provide accounting statements, they claimed that it would be too complex due to cross-chain management and requested an extension. But despite the extension, they didn’t provide the required documents.
Michael Zetser doesn’t believe the excuse that a smaller subsidiary of the company would struggle because it has a much smaller volume of assets and operates in a regulated environment. He predicts that there could be numerous factors that lead to such underlying issues, such as poor staff morale, inadequate key management, and inappropriate access management.
There’s also a possibility that the financial systems of Binance US are far more entangled with its parent company than it lets on. This results in major difficulties with regard to record-keeping and accounting. To make matters worse, insider reports from Binance US indicate that the company let go of approximately 20 percent of its staff.
Could Innovative Solutions Like BitPay Revive The Crypto Sector?
With all the legal drama surrounding the crypto industry, many analysts are wondering if innovative solutions like BitPay’s bill payment feature can revive the sector. Recently, PayPal introduced its own stablecoin currency, called PayPal USD. It would allow easier transfer of payments, and the stablecoin would be redeemable at a rate of 1:1. Reports also show that it’s backed by short-term treasuries and other sources to prevent the risk of volatility.
Michael Zetser expects that despite the potential of these crypto-related projects, regulators will have a hard time accepting the technology for what it is. Although BitPay’s Bill Pay feature is certainly a step in the right direction, increasing scrutiny shows that regulators won’t let crypto get away without making some major changes.
