The notion of cryptocurrency as a globally accepted, unbranded payment system that upends incumbents like Visa, Mastercard and PayPal is worth watching but unlikely to occur soon, according to MoffettNathanson analyst Lisa Ellis.
“Cryptocurrency systems are potentially disruptive to private payment systems. Their core design characteristics - which are aimed at enabling ‘freedom of money’ - are in direct contrast to the characteristics of most traditional, private payment systems,” she said in a note to clients.
As progress is being made to address shortcomings and compelling use cases emerge - e.g. crypto becoming an alternative to fiat currency in high-inflation economies - the threat should not be ignored, she added.