Bitcoin appears to be on its way back as a means of payment. Two-thirds of all online stores that have ever accepted digital currency have already stopped doing so, according to research by BNR. Volatility and anti-money laundering legislation are cited as the main reasons.
BNR looked at historical overviews of BTC Direct, BitMyMoney, and Coinmap.org to see which online stores have accepted bitcoin in the past. BTC Direct and BitMyMoney are both Dutch crypto wallet providers. Coinmap.org is a database that lists all the shops in the world where you can pay in crypto. Of the 115 stores that did, 76 have now stopped. Only 39 stores still accept digital currency.
A tour of ten discontinued online stores reveals two main reasons for phasing out Bitcoin. The most mentioned is the volatility of the currency. “If you sell 80 euros worth of Bitcoin on Monday, there can only be 60 euros left on Friday,” says one online retailer.
But anti-money laundering legislation also makes it much more difficult to accept Bitcoin payments. Since 2020, cryptocurrency providers have to register with De Nederlandsche Bank and since 2022, strict KYC (Know Your Customer) obligations have also been in place within the cryptocurrency industry. In practice, this means that crypto wallet providers not only need to know the personal data of their private customers, they also need to keep track of every online store their customers send payments to. “Administratively practically impossible,” says Merel Hendrikse, head of KYC at wallet provider BitMyMoney.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
