At the moment of cryptocurrency emergence, it has just been overrated as a pyramid. Every person has its own uses for cryptocurrency. Selling goods, Restaurants, Sports, Shopping, Tourism, Charity, and the Financial sector all accept it as one of their own. By the end of 2024, the first and most widely recognized cryptocurrency- that is, Bitcoin- will be
worth over $99,000. But the world doesn't stop at Bitcoin; there are more than three hundred thousand different cryptocurrencies with varying capitalizations and popularity, and this list continues to grow.
The article covers legality with examples, specifications for predictions concerning 2025, the use of cryptocurrencies by global brands in the future, and security checks in this mode of browsing.
Rapid Growth of Cryptocurrencies and Legalization Issues
According to compound annual growth (CAGR) rates of 99% in cryptocurrency, the entire world of cryptocurrency ownership has withered away by far compared to traditional payment channels around 8% from 2018 to 2023. American Express reportedly has only enviously viewed this within the five years and highly has had in comparison to any ownership of cryptocurrency. Apart from that, it seems that the market capitalizations were growing proportional to the increase in the CAGR. An increase of almost 400% occurred in the market between 2022 and 2024 (from $850 billion in 2022 to $3.3 trillion in 2024).
Its influence is very noticeable today in the entire payment system of the world. On cursory consideration, acceptance of cryptocurrency-this means of course - as an written-in fact official payment means appears unobjectionable and undisputed. But all countries face an iceberg in the road towards legalization of cryptocurrency in the form of transparent regulation for crypto exchanges and appropriate tax regime. Let us look closer into how El Salvador has tackled these issues when it declared Bitcoin legal tender at the national level.
Example of Cryptocurrency Legalization
It made Bitcoin totally legal in all forms as a payment method in El Salvador in 2021. By this, the nation's steps went quite forward concerning boosting its economy; bringing in investments; and cutting costs that its own citizens incur while making money transfers.
Many income-minded investors are making hay through foreign investments in cryptocurrencies, thanks to the El Salvadoran tax regime, which imposes no capital gains taxes or income taxes on Bitcoin transactions. But all cryptocurrency activities are tightly monitored by the government. This formal crypto wallet and the Chivo are features that track and attempt to outlaw the illegal application of cryptocurrencies like Bitcoin, as well as modern military operations and regulating money laundering activities. Tax conditions for harvesting with respect to income tax and VAT apply to specific cryptocurrency transactions.
Predictions for Cryptocurrency Legalization in Other Countries
As of December 31, 2023,
CoinGecko's report states that over 60 percent of countries have legalized the use of cryptocurrencies by law. Currently, a total of 119 countries have recognized this means of payment. The highest percentage from all continents is in Europe, with 95 percent of countries having legalized cryptocurrency.
By 2025, nations that will incorporate cryptocurrency into their financial frameworks are expected to swing between two camps, either accepting it as legal tender or simply regulating the taxation and transparency aspects of crypto transfers. Since anonymity and decentralization are primary features of cryptocurrencies and pose legal challenges for countries in formal recognition of this payment platform, it is difficult for countries to adapt.
Paraguay may be an example to follow by El Salvador with regard to accepting Bitcoin as part of its payment system, according to Carlos Rejala. In global terms, this will solidify the position of the country as being more supportive in the use of cryptocurrencies, especially once these targeted solutions on tax and regulations oversight are in place. It is expected that Paraguay may adopt Bitcoin by 2025.
Ukraine, because of its European integration, will most likely legalize cryptocurrency by the beginning of 2025, joining Paraguay in that regard. An 18% VAT plus a 1.5% military tax are projected in the taxation system for this purpose. This decision is probably motivated by the need to harmonize with European standards and modernize the national economy.
Instead, Venezuela counts on introducing a taxation scheme through cryptocurrency systems, which sounds sort of impossible when getting in more than a precarious position in the world market. With huge sanctions, restrictions in the international financial market, and hyperinflation, cryptocurrencies are seen by many as a salvation.
Trust of Major Brands
Capitalizing on current trends, many companies are more than eager to jump in the latest craze, the "cryptocurrency locomotive." These companies are fervently developing modes of payment using different cryptocurrencies just for their consumers:
Examples include the aforementioned mega moguls like Disney, Nike, Apple, and PlayStation, who have already enabled the use of crypto payments for their products. Below is a list of some other companies that have joined the bandwagon:
Microsoft: Pioneers in Cryptocurrency Use
This is one of the world's largest and renowned tech companies founded by Bill Gates and Paul Allen in 1975: hardware and software development, artificial intelligence technologies, and cloud services.
Microsoft has started accepting bitcoins as one of the payment methods for particular products and countries by 2014. In fact, it allows the customers to buy games, products from the company, and other forms of digital content in the Microsoft Store. Payments are done in conjunction with crypto services such as BitPay, and even while paying, the cryptocurrency is converted into dollars.
Intriguing fact: Microsoft was one of the very first major corporations in testing cryptocurrency payments.
Travel With Cryptocurrency - Travala
Booking nearly 220 countries and territories around the globe, Travala is the travel booking site where people can book flights, vehicles, and hotels.
Meanwhile, Travala accepts all payments made through more than 90 cryptocurrencies, such as bitcoin and ethereum, besides the traditional currency payment types. Travala provides users with access to an array of around 500,000 accommodation options and 600 airlines, along with a discount and cashback system for cryptocurrency-payers. Working with significant, multi-popular platforms such as Coinbase and Binance, the service eases transaction payments for their users.
Interesting to know: In addition to all the popular cryptocurrencies Travala knows, it even created its own token called AVA, which the users can use for payments.
AMC Theatres: Cinema Using Cryptocurrency
With 950 locations and more than 10,500 screens, AMC Theatres has become very popular worldwide. It has joined the new trend of ticket and food payments offered through payment in Bitcoins, Ethereum, Dogecoin, and Shiba Inu. A user can easily make a payment on the site or app, quickly and in a hassle-free manner.
The Pays with BitPay system allows fast and secure transactions for its services and products.
Interesting fact: Although many people are switching to the option of paying for tickets via crypto, AMC Theatres started accepting cry to pay for popcorn and drinks way back.
Secure Cryptocurrency Transfers
As with any other transfers, cryptocurrency is not protected against the risk of potential hacking attacks, fraudulent transactions, or loss of access keys during the transfers from one wallet to another. While there continues to be improved security levels and better protection systems year after year, all these remain issues that continue to be relevant. Each developer strives to create more developing technologies protecting people's funds; to those, you may include the following as the chief methods:
- Two-Factor Authentication (2FA): Sending a code to your phone and/or email to affirm that it is indeed you making the transaction.
- Multi-Signature: For organizations in which many people are required to witness an action before it may utilize funds at once.
- Cold Storage: Keeping cryptocurrency offline rather than online place. Funds remain, therefore, out from the danger zone of attack hackers.
- Biometric Authentication: Uses FaceID, which is more complicated to fake when compared to stealing an app's PIN code.
Integration of those simple steps by developers into their apps would ensure safer storage for your assets. Most of the available platforms where you transact today have all included basic protection systems. Some of the most reputable include Trust Wallet, Exodus, and Coinbase.
Lab42 also brought aboard its experience in the building of a cryptocurrency wallet for safe transfers: R1wallet. Our main feature is to improve customer loyalty by increasing application reliability with the integration of database encryption, automated code auditing, a restrictive firewall policy, limited access for employees at different levels, and decentralized creation of the server structure. If you want to understand this experience, you can reach us via filling the contact form or through our email, phone, or WhatsApp.
Conclusion
From the foregoing discussions, we can conclude that while the entire world is witnessing a new transformation in the global financial system, the active growth of cryptocurrency continues. A yearly increase will be seen in the participation of different countries in the legality of cryptocurrencies. Surely, by 2025, Venezuela, Paraguay, and Ukraine will add to the increasing number of such countries. These countries will surely be multiplied and accelerated over the next ten years. Digital technologies and economies will take off in financial changes and not remain a passing fad.
