The landscape of digital assets, blockchain and Web3 technologies is going through a change.
What was once considered theoretical or viewed with suspicion in light of scandal and volatility is now becoming increasingly practical.
"It's important to know that cryptocurrencies are not just bitcoin, Doge and NFTs." Sheraz Sherehead of payments at Solana Foundationhe told PYMNTS. โโฆBlockchains are truly alternative avenues for payments and financial assets.โ
However, there remains an ongoing challenge to accelerate the adoption of cryptocurrencies, a challenge that requires an evolution from awareness to adoption, particularly among senior leaders in financial services.
"If you think about the mainstream, we're very early, even on the awareness side," Shere said.
This is because while cryptocurrency advocates possess deep knowledge of the technology, there remains a critical need for education among executives so that they can truly explore the practical applications and future potential of cryptocurrencies in payments.
โas a For example, people are very excited about all these new [real-time payments] systems,โ Shere said. โImagine a world [real-time payments] system that just runs without central authority. Good, โWe have it with stablecoins running on a network like Solana: decentralized, permissionless instant settlement.โ
"Don't be distracted by the noise," he added. โThere is a lot of noise, but there is some interesting underlying technologies that โIt is important for financial services leaders to understand them.โ
Compliance as a catalyst for cryptocurrency growth and adoption
The journey from a theoretical understanding of crypto payments to practical implementation from them As an innovative value transfer mechanism, it involves navigating entrenched misconceptions about the space and endemically fragmented regulatory complexities.
"There are many misconceptions among people in the financial services industry about compliance and regulation, and that they wouldn't want to touch blockchain with a 10-foot pole,โ Shere said. โAnd I think in the past that may have been true, but there is a whole new set of controls at the protocol level. that exist now โwhich provide even more granular control than you often have with traditional financial rails.โ
These advancements enable confidentiality with auditability, control over which wallets can interact with assets, and the ability to make reversible transactions or freeze and seize assets.
Compliance is driving the development of the crypto industry and paving the way for innovation. Token Extensions, a native token program in Solana, represent an advancement in tokenization standards.
These extensions, Shere said, build compliance features into the tokens, allowing for fine-grained control of transactions. From confidentiality to transfer hooks, these features allow regulated entities to tokenize assets while meeting compliance requirements, an essential step in gaining the trust and acceptance of traditional financial institutions.
Increasing awareness and acceptance lies in solving real business problems
While awareness, acceptance and adoption are crucial to driving the evolution of cryptocurrencies within payments ecosystems, two other critical factors will determine the success of cryptocurrencies: their usability and is utility.
"One problem has been that the technology has not been easy to use," Shere said. "That's all been designed by engineersโฆ be very focused on the technology and not on the use cases or the UX.โ
He highlighted the need for crypto players and entrepreneurial companies. similar focus on real-world use cases, such as cross-border payments, where blockchain solutions offer advantages over traditional systems.
โThe end user may not even know What are they using blockchain,โ he said. "They simply know that they can easily send money to anyone in a hundred countries without the need to travel to a physical location or use correspondent banking."
The message reflects a deliberate effort to engage companies, including Fortune 500 companies, in adopting blockchain technology.
"The first versions of blockchains were incredible innovations, but They were not built โThinking about scalabilityโthings like 10-minute settlement times or $20 to settle a transactionโworks for big money-moving whales, but it doesnโt work for retail, and it doesnโt work for merchant payments,โ Shere said. , noting that the Solana ecosystem It is built for its speed and scalability.
By demonstrating he practical applications and scalability block chainShere explained that the Solana ecosystem seeks to position itself as a business innovation partner among financial institutions seeking to improve efficiency and expand market reach.
"Things are moving slowly in the traditional financial services industry," he said. โThings move very fast on blockchain. As they intersect, you might see things start to move a little faster.โ
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