Cryptocurrency is now officially in the mainstream, having completed its evolution from an obscure hobby for computer enthusiasts to a multibillion-dollar industry with advertisements on national television. Thousands of different cryptocurrencies are now on the market, used for everything from non-fungible tokens (NFTs) to Tesla purchases.
Serious concerns remain about the security and fraud issues surrounding cryptocurrency, however, such as account takeovers, money laundering and a range of other complications. These concerns have put a damper on the more widespread acceptance of cryptocurrencies for everyday purchases, such as groceries or merchandise, as retailers run the risk of holding the bag if a cybersecurity incident happens on their watch.
“[Just] 4% of surveyed merchants indicated they are equipped to accept crypto as a method of payment today, leaving a significant gap in fulfilling customer interest in crypto commerce,” said Eric Anziani, chief operating officer at Crypto.com. “With limited to no opportunity to conduct direct transfers from customer to merchant crypto wallets today, customers are typically forced to take the additional step of converting crypto to fiat before making purchases.”
Enhanced cybersecurity measures will be critical to promoting the more widespread use of cryptocurrency. Anziani discussed the most effective ways to do so in a recent interview with PYMNTS.
Protecting Cryptocurrency Payments
Customer verification must be a tough nut to crack for potential fraudsters while not inconveniencing legitimate customers. To accomplish this, Crypto.com deploys different security measures for its “hot wallets,” which are internet-connected wallets vulnerable to online attacks, and “cold wallets,” which are not connected to the internet and are considered more secure, but less convenient with which to transact.
“For hot wallets, it is straightforward, with a 12-word phrase on MetaMask, private and public…
