One of the biggest hindrances to the adoption of cryptocurrencies is the lack of KYC functionalities. And the reason is pretty simple. We live in a dangerous world, where issues like terrorism financing are a real threat to security. That’s why most mainstream institutions are very cautious with cryptocurrencies. No institution wants to find itself on the wrong side of the law, due to money laundering or something more sinister like terrorism. In essence, when a crypto makes a move to add KYC, it’s without a doubt a major step towards mass adoption and growth.
That’s exactly why Electroneum (ETN) is headed for some major gains, now that it is fully compliant with KYC. Electroneum now has a chance to gain in adoption by corporations all across the world. Actually, in their press release announcing their compliance to KYC, the Electroneum team touches on the issue of adoption. Take a look at what they had to say with regards to compliance to KYC, and its importance to mass adoption.
“We’ve been talking to a number of these businesses for a year. Every single one of them wants us to have KYC in place. The message we’ve been getting from the corporate world has been very clear: no KYC, no partnership.”
Looking at the overall market, the most adopted blockchains also happen to be those with some form of compliance to KYC. Take Stellar for example. The stellar blockchain is one of the most adopted blockchains and has made huge leaps in the finance industry. Part of this is due to the fact that stellar has tools that allow financial institutions to do KYC when using the stellar blockchain for transactions. In essence, the fact that Electroneum is now compliant to KYC is a big-heads up for its growth going into the future.
For ETN investors, this is a reason to smile. That’s because Electroneum (ETN) now has the regulatory basis to compete effectively in the market. Soon Electroneum could be taking on centralized payment systems such as Paypal and ApplePay, and if it wins, then its intrinsic value will be up there in the sky. But what are ETN’s chances of winning against such big players? Can it win against Paypal; for instance? The answer to that is a big Yes, and for two reasons.
The first one is security. While the app part of Electroneum is centralized, Electroneum as a whole is a decentralized blockchain. This means that there is no single point of failure for Electroneum (ETN). In a world where hackers are getting bolder and more sophisticated, security when transferring money online will become a priority for most people. As this happens, it is decentralized and efficient platforms like Electroneum that will slowly begin to take over the market.
The second one is cost. Transactions on the ETN app are not only instant but are also very cheap. That’s an incentive for people to shift from existing systems to Electroneum since it actually saves them money. As a matter of fact, it puts money in users’ pockets if they choose to mine ETN.
Besides, Electroneum is taking aim at one of the largest markets out there, and that’s unbanked smartphone users in the developing world. Since it now has KYC capabilities, Electroneum is well positioned to get into partnerships with mobile service companies all across the developing world. This gives it a huge potential for adoption by hundreds of millions of users. That kind of potential makes Electroneum dwarf all other blockchain projects, including bitcoin (BTC).
With that kind of potential, the possibility of Electroneum making it to the top 20 is quite high. It’s an interesting time to be an ETN investor.