Even though cryptocurrency has many applications and decentralized finance transforms the traditional financing system overall, the crypto industry takes its origin from the idea of changing the transactional sector and the way the store of value is defined. To put it simply, the primary means of using crypto are payments and short-term stores of value. Both of the mentioned are crucial for massive crypto
adoption: after all, these two operations are most frequently conducted by regular consumers. An average person performs tens of transactions daily. Our long-term investments may be put in crypto- or other assets; on a more everyday level, though, all of us deal with short-term liquidity, which is money used for day-to-day expenses (cash).
Since everyday payments are an enormously big and significant part of the financial agenda, it may become the next game for crypto adoption. Still, there is a major obstacle standing in the way of this adoption: volatility. While Bitcoin's volatility is not problematic for long-term holders (because it grows over time), it's still highly troubling to use in day-to-day transactions as it can quickly lose half of its price in a day. The same goes for other cryptocurrencies, and this is why they can't become a full-strength substitute for fiat and cash. However, there are two cryptocurrency instruments that potentially can solve this problem: stablecoins
and CBDC (Central Bank Digital Currency).