Mainstream adoption of cryptocurrency is on the rise, as indicated by a recent report from Crypto.com showing a 34% increase in global cryptocurrency ownership in 2023. The report revealed that 432 million people owned crypto in January 2023, a number which rose to 580 million by the end of the year. The potential mainstream adoption of digital assets could be further boosted if Canadian businessman and “Shark Tank” host Kevin O’Leary succeeds in buying TikTok. O’Leary discussed the possibility of implementing digital asset features on the popular social media platform, emphasizing the potential for global users to access cryptocurrencies for digital payment transfers between countries in a compliant and transparent manner.
Experts believe that integrating cryptocurrency into TikTok could have several benefits for the app, including spreading crypto content and reaching a wider audience. Alexander Mamasidikov, CEO of CrossFi, highlighted the self-reproductive nature of TikTok, where users generate mass content on their own, and suggested that supporting cryptocurrency could enable users to create crypto-focused content on a larger scale. Shira Lazar, Founder of What’s Trending, also noted the potential for incorporating cryptocurrency as gifts during TikTok live streams or as tipping mechanisms, considering the mainstream adoption of crypto in countries like El Salvador, Nigeria, and Turkey.
Despite the potential benefits, challenges may arise in implementing cryptocurrency payments on TikTok. Tim Delhaes, CEO of Grindery, pointed out that compliance and regulation issues could pose hurdles for social media platforms looking to integrate crypto payments. He noted that Grindery, despite attracting over 700,000 sign-ups, has faced challenges in meeting regulations while integrating cryptocurrency functions into the messaging platform Telegram. Mamasidikov also highlighted technology-related challenges, such as providing payment messages for seamless fund transfers between users within the social network.
Delhaes suggested that integrating crypto payments could transform social media platforms into “Super Apps,” offering content creators new revenue streams and greater control over their earnings. He emphasized the importance of separating blockchain payments from core business functions to ensure the success of crypto integration, citing past failures like Facebook’s Libra project and Telegram’s token launch. Mamasidikov predicted that alternative payment solutions would be implemented in many social networks in the future, enabling financial tools for citizens in developing countries who may not have access to traditional banking methods.
In summary, mainstream adoption of cryptocurrency is on the rise, with increasing numbers of people owning digital assets globally. The potential acquisition of TikTok by Kevin O’Leary could further boost mainstream adoption by integrating crypto features on the platform. While experts see benefits in incorporating cryptocurrency on TikTok, challenges related to compliance, regulation, and technology may need to be addressed. Overall, the integration of crypto payments on social media platforms could have transformative effects, offering new revenue streams for content creators and expanding financial access for individuals worldwide.
