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The future of money is digital

The future of money is digital

As banks warm up to digital assets, experts1 predict a future where digital cash is the norm, along with all the convenience and possibilities that come with it.

Digital cash on the rise

Today's consumer values digital assets more than ever before. Global crypto payments are expected to pass $10 billion in value this year, up 70% from 2021.2 And according to a recent poll, nearly 20% of Americans report having invested, traded in, or otherwise used crypto.3

Meanwhile, government and institutional interest in digital assets from players like Bank of America and JPMorgan Chase is growing. Thus, many experts anticipate that we're heading toward a digital future, where money flows in new, exciting ways.4

Why? It has to do with Web3's potential to offer faster, more secure financial experiences that meet consumers' needs in innovative, loyalty-building ways.5

The potential to reach new markets

While Web3 still has a long way to go in terms of reducing barriers to entry and maximizing adoption, digital assets have the potential to expand access and offer greater inclusion for the 7 million U.S. households that don't have bank accounts.6

Bestselling author of "The Truth About Crypto" Ric Edelman predicts that for this reason, as well as the higher speed and lower costs digital dollars can offer, digital cash will likely be in place before 2030, changing the market substantially.

“The entire economy will benefit from this innovation, and it will help secure the U.S. dollar as the world's leading currency. Bakkt® will prove to be a major player in this growing industry," says Edelman.

Faster yet more personalized

Digital assets pave a future where people can pay for a purchase on the other side of the world in seconds, and at the same time, transaction experiences can maintain a more personal feel.

Andrew Rossow, attorney and Senior Editor at HYPEBEAST Web3, remarks that the benefits of a digital asset future can grow with adoption:

“Mass utilization of digital currency will ensure a more streamlined mechanism for transacting and communicating across borders that provide for a more personalized experience.”

Rossow also envisions this moment as an opportunity to recognize the potential of tomorrow and maximize societal benefit.

“We must remember to build for the future and to begin to inject those technologies that make sense for where we are right now in our corporate and economical infrastructures,” says Rossow.

The future of customer loyalty 

Loyalty programs have been the bedrock of many brands’ customer acquisition strategies for decades. But as competition for consumers’ time and attention has increased, so too has the importance of engaging them on a deeper level. By rewarding customers for their loyalty with travel, Apple® products, gift cards, or crypto rewards, you can build trust, foster brand affinity and encourage them to stick around.

Additionally, as more consumers warm to digital assets, there's exciting potential for the future of customer loyalty. Crypto has built-in, exclusive opportunities for rewarding customer loyalty through staking, limited-edition assets, and more. 

Forbes notes that blockchain-powered customer loyalty programs can confer benefits like streamlined reward tracking, interchangeability, and greater customer value.7 Delta Airlines and Singapore Airlines have already taken advantage of this approach.8 Furthermore, blockchain community-building, a cornerstone of the digital asset market, can improve customer retention and innovation.9

Effective integration begins today

Meeting customers where they are today with savvy digital experience solutions is key to successful digital asset management.

Abundant Advisors founder Leo Marte notes the potential unlocked by this proactive, integration-friendly approach to digital currency.

“If we can integrate digital assets seamlessly into experiences that people are already familiar with, such as your smartphone and the social media ecosystem, digital assets will replace our current concepts of trade, assets, and money,” says Marte.

This idea of transforming everyday interactions and enjoying a brave new world shaped by Web3 is certainly exciting. Marte says that the end result of more applications on the blockchain will be “transparency, security, and near-instant transaction execution, cutting intermediation costs.”

Based on his experience in evaluating the market and evolving finances, Marte feels optimistic.

“The future of digital assets is bright and I wholeheartedly believe that we are just scratching the surface of its potential.”

Final thoughts

While it's impossible to predict the future, one thing is certain. There are many reasons digital cash and digital assets have a future, and that future is here. So for businesses and consumers alike, it's an exciting time to get ahead of the curve as this exciting world unfolds.

This does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any investment, including any of the product(s) mentioned herein, or an invitation, offer or solicitation to engage in any investment activity. This information is provided solely on the basis that you will make your own investment decisions, and Bakkt does not take account of any investor's investment objectives, particular needs, or financial situation. It is strongly recommended that you seek professional investment advice before making any investment decision.

1 CNBC. “'Future of Money' economist says the end of cash is coming--here's what could replace it." Published November, 2021.  

2  Insider Intelligence. "34 Million US adults own cryptocurrency." Published April, 2022. 

3 CNBC. "One in five adults has invested in, traded or used cryptocurrency, NBC News poll shows." Published March, 2022. 

4 CNBC. "As Wall Street banks embrace crypto, high-flying start-ups look to lure top finance talent." Published April, 2022. 

5  Deloitte. "Making blockchain real for customer loyalty rewards programs." Accessed August, 2022 

6 FDIC. "How America Banks: Household Use of Banking and Financial Services." Accessed August, 2022. 

7  Forbes. "Should You Be Considering the Use of Blockchain To Power Your Customer Loyalty Program?" Published August, 2018. 

8 CoinTelegraph. "Security, Loyalty Programs and the End of Overbooking: How Blockchain Could Help Airlines." Published August, 2018. 

9 Forbes. "Building A Strong Community With NFTs." Published April, 2022.