Crypto adoption still has a long way to go before people use cryptocurrencies for everyday goods. Transactions fees need to drop, and merchants need to adapt, but Morgan Stanley believes that change is coming.
In a research report released on Thursday, April 21, the bank pointed out how payment company Strike announced partnerships with point-of-sale supplier NCR and payment firm Blackhawk Network, meaning many U.S. businesses will be able to accept Bitcoin soon.
Morgan Stanley said when it comes to milestones, partnerships between physical stores and payment companies supporting bitcoin are essential in the “evolution of bitcoin usage as a medium of payment.” The company noted that over 85% of sales in the U.S. happen locally versus online.
Strike’s payment system will use the Lighting Network to process transactions, which will allow meager transaction fees making it more practical for payments that could otherwise be made with a debit card.
The bank noted that although volatility has dissuaded the heavy adaption of digital assets, the ability of merchants to accept cryptocurrencies might help prices stabilize.
Crypto is used predominately in the digital asset world to buy non-fungible tokens (NFTs). Still, as more brands look to advertise in the metaverse, Morgan Stanley believes this could increase the need to accept a range of payment methods, including crypto.