The gap between fiats and cryptocurrencies has been reduced another notch in recent days thanks to eWallet provider Skrill. As consumers look for more ways to buy Bitcoin and Ethereum, the virtual payment processor and wallet has stepped into the breach and made it easier for everyone to own crypto. As per the announcement, Skrill users can login and exchange their native currency for four tokens: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC).
The process takes “a matter of seconds” according to Skrill’s website and users will be able to use 100 different payment methods to exchange 40 fiats into cryptos. At the heart of the system is Skrill’s relationship with an as yet unnamed exchange. By working together, Skrill can send money to the exchange and the exchange will store it before sending it back at the user’s request. In essence, the two platforms are providing a bridge between traditional currencies and digital currencies.
A Simple Skrill System that Anyone Can Use
That was something Skrill CEO Lorenzo Pellegrino wanted to achieve when he authorized the project. As general consumers demand more ways to buy Ethereum et al, established processors need to find their place in the market.
“The world of cryptocurrency trading is exciting and dynamic, and our digital wallet service very much lends itself to this environment. I’m confident that the ability to trade in cryptocurrencies quickly and easily through Skrill will appeal to consumers both now and in the future People want to experiment with cryptocurrency trading but don’t know where to start,” said Pellegrino.
Payment processors entering the crypto space is something that’s gradually started to increase over the last 12 months. Back in April, MoneyGram announced that it has partnered with Walmart and Ripple to create a global payment system. Using Ripple’s borderless transactions, Walmart2World users will be able to send funds to any MGI location in 200 countries. Beyond the digi tal payment world, traditional banks have also started to embrace crypto technology. The ongoing xRapid trials with banking institutions have proved that new and old systems can work in unison.
Skrill’s crypto-enabled wallet is not only the latest innovation in the space but, according to the company’s CEO, it will be a user-friendly one. The announcement has already given the long-term prospects of BTC, ETH and LTC a boost. However, what’s likely to buoy the market even more is a move towards direct crypto payments. At this stage, you can buy Litecoin and its peers using Skrill. That’s great news for inspiring investors, but what about consumers? Skrill may not be PayPal but it’s up there as one of the leading online payment methods.
Exchange and Spend Cryptos Like Fiats
Adding crypto payment provisions to the platform seems to be a natural progression of the latest innovation and something that could change the way consumers pay. In reviewing the future of cryptocurrencies, Imperial College found that six conditions need to be satisfied. In addition to scalability and regulation, usability is paramount. If Skrill can introduce exchange and payment options, cryptocurrencies will become highly usable. What’s more, because the software will handle all the technical stuff, users won’t have to know anything about the underlying technology.
The day that a complete novice can log in to Skrill, buy Bitcoin using their native currency and then store, spend and transfer it at their leisure will be a major turning point. When you combine innovations like this with Opera’s browser-based wallet and the evolution of crypto-specific wallets, it’s getting easier to buy and spend digital currencies. That’s something the bodes well for the industry. For all the advancements in back-up technology, many experts still believe the long-term fate of cryptos will be decided by its real-world utility. If the average person can spend tokens in the same way they do fiat currencies, they’ll gradually become a part of our lives.
Although we may never see cryptocurrencies fully replace fiats, some sort of coalition could be possible and Skrill’s innovation may be the first step towards this. If that eventually leads to a system whereby fiat-to-crypto payments are just as easy as fiat-to-fiat payments, the price of Bitcoin, Ethereum and every other major coin should increase markedly within the coming years.