Close Menu
AlexaBlockchain
  • News
  • Press Releases
    • Submit Press Release
  • Adoption
  • Funding
  • Interview
  • Policy
  • Explained
    • Bitcoin Halving 2024: Will it Trigger the Next Bull Run?
    • Everything You Wanted to Know About Bitcoin But Were Too Afraid To Ask
    • Cryptocurrency: what makes it so popular?
    • Top Five Crypto Scams And How To Avoid Them
    • Cloud Mining Explained
    • What are NFTs?
    • What is a Web3 Browser?
    • How To Build High Quality Crypto Backlinks
  • About
  • Advertise
  • Trending
    • #BitcoinHalving
    • #CloudMining
    • #Web3.0
    • #Metaverse
    • #NFTs
    • #PlayToEarn
    • #DeFi
    • #BlockchainTechnology
    • #Bitcoin
    • #Cryptocurrency
    • #DigitalAssets
Facebook X (Twitter) Instagram
Sunday, June 1
  • Advertise
  • Crypto PR
  • Partner
  • Submit Press Release
  • Contact Us
X (Twitter) Facebook LinkedIn Instagram
AlexaBlockchain
Banner
  • News
  • Press Releases
    • Submit Press Release
  • Adoption
  • Funding
  • Interview
  • Policy
  • Explained
    • Bitcoin Halving 2024: Will it Trigger the Next Bull Run?
    • Everything You Wanted to Know About Bitcoin But Were Too Afraid To Ask
    • Cryptocurrency: what makes it so popular?
    • Top Five Crypto Scams And How To Avoid Them
    • Cloud Mining Explained
    • What are NFTs?
    • What is a Web3 Browser?
    • How To Build High Quality Crypto Backlinks
  • About
  • Advertise
  • Trending
    • #BitcoinHalving
    • #CloudMining
    • #Web3.0
    • #Metaverse
    • #NFTs
    • #PlayToEarn
    • #DeFi
    • #BlockchainTechnology
    • #Bitcoin
    • #Cryptocurrency
    • #DigitalAssets
AlexaBlockchain
You are at:Home » The Digital Dilemma for Crypto: How to Unleash the Blocks in the Chains
Opinion

The Digital Dilemma for Crypto: How to Unleash the Blocks in the Chains

Despite serious motivations to adopt crypto, mass scale adoption is not happening. Alex Zeltcer, CEO & Co-founder of nSure.ai explains - what is holding it back?
Alex ZeltcerBy Alex ZeltcerMarch 8, 2023Updated:March 8, 2023No Comments4 Mins Read
Twitter Facebook LinkedIn Reddit Email WhatsApp
The Digital Dilemma for Crypto How to Unleash the Blocks in the Chains
Alex Zeltcer, nSure.ai CEO & Co-founder
Share
Twitter Facebook LinkedIn Pinterest Reddit Telegram Email WhatsApp

Digital transformations occur when existing technologies and tools hold back growth. Digital processes simplify tracking, eliminate errors, and save time and money. They enable automation and ensure compliance with international standards. When viewed through that lens, it is surprising that cryptocurrency has struggled to gain much wider acceptance in today’s economy.

Despite the strong desire to speed and simplify transactions anywhere, or the significant media attention given to cryptocurrency, its adoption is actually relatively small. The total crypto market is worth an estimated $1.15 trillion, or about 0.8% of the world’s currency. An estimated 300 million people are using cryptocurrencies today, which seems like a lot until you realize it is less than 4% of the global population.

Another compelling motivator would be that fiat currencies are frequently at risk of devaluing. In January of this year, Lebanon depreciated its currency by 90%. Over the last half-century, we’ve seen a number of government-initiated currency deflations. These types of actions should be eroding confidence in government-issued currencies.

Between the hype and the serious motivations to adopt crypto, we haven’t seen an onboarding of mass scale. Clearly, some ideal market conditions are there, so what is holding it back?

Three Roadblocks To Cryptocurrency

There are plenty of people who aren’t interested in cryptocurrency at this time. Fear, uncertainty, and doubt – coupled with negative stories surrounding failed companies like Celsius and FTX – are keeping some people away.

However, even those who are interested in trying it are finding their path blocked. There are essentially three checkpoints on the path to cryptocurrency adoption that eliminate 60% of the interested market—nearly all of these roadblocks center on fraud concerns and overzealous fraud prevention activities.

1. Unnecessary Friction

When consumers want to purchase cryptocurrency, they have to go to a cryptocurrency exchange. They choose their crypto-wallet, but before they can make their initial purchase, they are asked to provide KYC (Know Your Customer) information.

KYC is important legislation in the fight against money laundering. It helps prevent weapons financing, human trafficking, and terror financing. However, there are regulatory guidelines that define minimum values before KYC steps are required (e.g., USD$ 3,000 or 2,500€). Most first-time crypto-purchasers are looking to buy only $100-$500 worth of cryptocurrency, far below the threshold for KYC. This unnecessary friction in the process actually stops 25% of potential crypto users from moving forward with their purchases.

2. Payment Networks

Payment networks, like Visa and Mastercard, are associating a high level of risk for all transactions to purchase cryptocurrency. The average payment rejection rate for e-commerce is about 10%. That jumps to 25% for consumers who want to purchase cryptocurrency.

For the cryptocurrency market, this is quite significant. After losing 25% of its potential market to users who walked away from an unnecessary KYC process, 25% of those who remained were turned away by credit card companies.

3. Payment Fraud Prevention Software

Crypto exchanges fraud teams and third-party fraud prevention companies add an additional layer of fraud protection for all transactions to protect against chargebacks. These fraud detection platforms review transactions in real-time and determine whether or not to approve the transaction.

Of the transaction attempts that get past Visa and Mastercard’s initial review, another 25% are turned down due to concerns of fraud.

When taken together, these three checkpoints eliminate approximately 60% of new crypto users. It unnecessarily limits the crypto-marketplace and forces users to continue using government-issued fiat.

Unleashing Chains, Onboarding Masses

Every day, thousands of interested cryptocurrency users run into unnecessary friction and are turned away at these three checkpoints. Until those issues are resolved, it’s going to be challenging to reach widespread adoption.

However, part of the issue stems from the different tools being deployed at each checkpoint. KYC is an important regulatory tool in the physical world. However, it is often misapplied in the digital world and far too easy to be faked. Verified KYC accounts sell for $50-$150 on the dark web. As you might expect, purchases stemming from those accounts are oftentimes fraudulent.

Fraud prevention technology for high-risk digital purchases currently exists without requiring KYC for every transaction. Using AI technology backed by a suitable prevention strategy, such as not focusing solely on identity verification, enables cryptocurrency sellers to detect and prevent fraudulent payments far more effectively than existing solutions used by exchanges and legacy payment fraud solution companies. Dedicated AI models designed for the merchant and the segment have proven themselves with online digital purchases. This approach would represent a win for users trying to open their first crypto-currency account and would be a positive step forward for anyone trying to onboard the masses.

Read Also: Study finds strong consumer confidence in cryptocurrency despite recent volatility

Artificial Intelligence (AI) Crypto Crypto Payment Cybersecurity Digital Economy Web3 Fraud
Share. Twitter Facebook LinkedIn Reddit Pinterest Tumblr Telegram Email WhatsApp
Alex Zeltcer
  • LinkedIn

Alex Zeltcer is the CEO & Co-founder of nSure.ai. Alex is a digital technology advocate and pioneer with 20+ years of IT, R&D, sales, and active angel investor experience both as CEO and founder. With nSure.ai, he leads the charge against chargebacks and helps global digital goods providers secure high-risk transactions from fraudsters.Before joining nSure.ai, Alex accelerated the growth and innovation for the digital gift card, online food shopping, and 3D collaboration market segments. As VP of R&D in an earlier career chapter, he led a team of 250 engineers at Comverse. His work has consistently driven scale, structure, and efficiency. Whether it was leading a spinoff of Dassault Systemes to deliver 200,000 orders that fed 10,000 families, deploying large projects to tens of millions of subscribers, or growing revenue from $30M to $100M, Alex has harnessed his passion for this technology to deliver exceptional results.Alex is a featured speaker in numerous conferences and forums. He is also a Young Presidents’ Organization (YPO) member. A resident of Tel Aviv, Alex enjoys biking, cooking, a good glass of wine, and spending time with his family.

More AlexaBlockchain

QFSCOIN Launches Affordable Cloud Mining Contracts to Democratize Bitcoin Access

May 30, 2025

India’s Supreme Court Slams Government Inaction on Crypto Regulation

May 19, 2025

Crypto UX Problem Persists Despite Growth, Finds Reown and Nansen’s 2025 Onchain UX Report

April 30, 2025

Taurus Brings Institutional-Grade Crypto Staking for Global Banking Clients

April 29, 2025

Tokenization Is No Longer a Theory. It’s an Imperative.

April 29, 2025

Why DeepBook Protocol (DEEP) Price Surged Over 161% Last Week

April 28, 2025
Add A Comment

Comments are closed.

Don't Miss

QFSCOIN Launches Affordable Cloud Mining Contracts to Democratize Bitcoin Access

Liquidium Launches Cross-Chain Bitcoin Lending Without Wrapped Tokens or Bridges

Katana Launches High-Yield DeFi Blockchain Backed by GSR and Polygon Labs

Sony’s Soneium Brings Viral Telegram Game Sleepagotchi to 200M Users via LINE

Trending Topics
  • Blockchain News
  • Blockchain Technology
  • Blockchain Platforms
  • Blockchain Regulation
  • Bitcoin News
  • Ethereum News
  • Ripple News
  • Tezos News
  • CBDC
  • NFTs
Featured Companies
  • Binance
  • Tech Mahindra
  • Huobi
  • Efforce
  • Future FinTech Group
  • SuburbanColors
  • Launchpool Labs
  • Lucky Crab Club
  • SIMBA Chain
  • Bulldog Law
Stay Updated
  • Events
  • Newsletters
  • Follow
  • Follow on Google News
  • Blockchain Directory
Get In Touch
  • Crypto PR
  • Advertise
  • Partner
  • About
  • Masthead
  • Careers
  • Write for Us
  • Submit Press Release
  • Submit Guest Post
  • Contact US
Copyright © 2025. AlexaBlockchain
  • About
  • Advertise
  • Crypto PR
  • Submit Press Release
  • Write for Us
  • Careers
  • Privacy Policy
  • Affiliate Disclosure
  • Disclaimer
  • Contact

Type above and press Enter to search. Press Esc to cancel.