2019 was a big year for cryptocurrencies but it was mostly filled with challenges that remain only partially solved. In 2019 conversation around cryptocurrencies became more mainstream and those who were previously suspicious of the whole industry started to finally come around to the concept. One of the main challenges that these cryptocurrencies and blockchain technology in general faced was coming from the regulatory bodies who are still unsure whether or not the distributed ledger can work for the mass adoption and governmental service. Cryptocurrencies have been actively trying to gain more power in more traditional industries and they have faced many challenges on their journey as well. Digital wallets, frictionless payments, and fintechs have become an essential part of many people but when it comes to them getting the support from the official bodies they have been struggling to get away from criticism and scrutiny.
This dynamic went on for most of 2019, which is surprising since, in theory, the government should be excited to promote this innovative technology and to get the most out of it by promoting and encouraging the growth of this industry but this is not the reality that most cryptocurrencies have to face.
Crypto going mainstream
There are still a lot of loopholes and a lot to be exploited by this technology that the government can’t afford, but at the same time, they refuse to make the necessary changes to accommodate these technologies while keeping the security in check.
Bitcoin and other popular cryptocurrencies have become so popular that they are now widely accepted across a variety of industries. Especially online casinos, different retailers and even escape rooms. Surprisingly so accepting bitcoin as a valid payment option has helped the companies to grow their businesses and reach new audiences. One of the countries that has benefitted the most from this trend is Norway, where the online casinos have seen a major rise in players who pay in cryptocurrencies and this trend ties in with the spike in popularity of NetEnt free spins offers in Norway as well.
In 2020 the best that industry can hope for is a more collaborative approach coming from the official bodies. If blockchain is to become an essential part of the business and even government policies then clearly changes need to be made to both parties so they can work together without major challenges. We haven’t really seen this trend come to life just yet. Both parties are stubborn about change and want the other to make the first move.
Banks working with fintechs
At the end of 2019, we saw a lot of discussions around fintechs working with or against banks and everyone mostly agrees that for the most part, the best options are to work together instead of dividing customers and halving the profits. In 2020 we will likely see more collaborations between banks and fintechs because it has proven to be such a success with Goldman and Apple and even Google and Citibank's more and bigger banks would.
In the following year, we will likely see more open talks about the way that fintechs, blockchain technology, and cryptocurrency can be integrated into society more seamlessly. Since we’ve seen the benefits that embracing fintechs can have, especially for people who for the first time have access to financial technology it makes sense for the government to figure out a way to work and improve security concerns and to find a way to manage the information in a way that protects people and their privacy.
Room for new companies
In 2020, big tech companies will also likely learn the lesson of keeping their ambitions at bay. All the major companies have decided to hop on the cryptocurrency trains and to become financial institutions but they have been met with nothing but criticism for wanting to monopolize entire industries and having the history of security concerns that most of them haven't even addressed yet. Since the backlash has been so massive, it’s likely that in 2020 we won’t see much of that but instead, we will see new companies that focus on finance and that have the necessary insurance, technologies, and security tools to offer these services without major risks.
This year holds an opportunity for cryptocurrencies and the different regulatory bodies to work together to create a model that works for both and won’t compromise the privacy and the security of the clients. There are ways to use this technology in a way that doesn’t sacrifice the orderly nature of governance.