• Rishin Patel, CEO at XBD Group


• 24.09.2025 12:30 pm
#Crypto #Fiat

When PayPal announced “Pay with Crypto,” many saw it as the latest ‘victory’ for crypto vs FIAT and more traditional finance. But my view is that we’re missing the bigger point here. This isn’t a war between old and new. It’s an evolution. What we’re seeing is the rise of a hybrid financial model, one where cryptocurrency and fiat don’t just coexist but actually reinforce each other, working in tandem to cater to different scenarios and circumstances.

Fiat isn’t simply going away. Neither is cryptocurrency. This means the future is about blending the two, and the businesses that understand this will be the ones that stay relevant.

Why a hybrid future makes sense

What excites me most about a hybrid future is how two very different types of money are starting to work side by side. For consumers, that means choice - maybe dollars for your morning coffee, and stablecoins for transferring money abroad. For businesses, it means new markets, new customers and a better way of moving money.

A key barrier, of course, is comfort. Most people still don’t feel fully confident spending cryptocurrency in everyday life, so simplification is critical. The systems we build and the way we market them must make it clear that hybrid payments can be made with a tap or a single click. PayPal has already perfected this with fiat. Extending that ease to digital assets is the next frontier.

The potential upside is significant. Businesses that move early won’t just future-proof themselves - they’ll attract a growing pool of cryptocurrency holders who want to use their assets for real purchases, not just speculation.

Why PayPal acted now

PayPal’s move signals one thing clearly: the market is ready.

A few years ago, the company tested cryptocurrency acceptance but pulled back amid volatility and regulatory uncertainty. Fast forward to today, and conditions are different. There’s growing clarity from regulators, increasing use of stablecoins, and rising demand from consumers to pay flexibly.

In the US, legislation such as the GENIUS Act is laying the groundwork for a more consistent and transparent approach to digital assets. That matters because businesses and consumers alike need confidence that the rules are clear before they can commit at scale.

At the same time, stablecoins have begun to emerge as credible instruments for everyday commerce, moving beyond their reputation as speculative vehicles. Their stability and utility make them attractive not only to cryptocurrency users but also to merchants who want predictable settlement.

Layered on top of this is a shift in consumer expectations. People increasingly demand payment flexibility, shaped by years of digital-first services and the rise of wallets, BNPL, and tap-to-pay. For a generation that expects instant, seamless financial interactions, cryptocurrency is a natural inclusion.

For traditional brands, the lesson is simple: refusing to accept new payment methods risks alienating customers. Just as businesses had to adapt to cards, mobile wallets, and buy-now-pay-later, they now need to prepare for cryptocurrency.

PayPal has always been a master of frictionless transactions. Adding cryptocurrency - even if it currently takes “a few more clicks”- is a step toward making it just as simple as fiat.

From hype to practical maturity

The 2022 “crypto winter” was painful but necessary. It cleared out the noise and left behind use cases that actually matter. Cross-border payments became faster and cheaper, stablecoins made global trade more transparent, and blockchain started to boost trust in settlement.

This shift marks cryptocurrency’s maturity phase. We’ve moved beyond speculative investing to real-world applications. Regulation must now support this, balancing consumer protection with innovation.

The focus should be on the top-tier, established cryptocurrencies and stablecoins, assets that have proven utility, rather than speculative tokens that undermine trust.

What this means for crypto-native firms

Some worry that fintech giants like PayPal will push crypto-native players aside. In reality, it’s the opposite.

When big names join in, they validate the space. They bring scale, brand trust, and mainstream reach - elements the cryptocurrency sector has struggled with. Native firms, in turn, bring innovation and decentralisation. Both sides benefit when they collaborate.

That said, adoption is still being held back - not by merchants, but by banks. Too many remain reluctant to work with businesses that accept cryptocurrency. Historically, businesses’ banking relationships have even been challenged due to a desire to accept cryptocurrency payments; this should no longer be the case as we enter a new era of trust. Until banks update their policies, the hybrid model will struggle to achieve its full potential.

Still, the direction of travel is clear. Businesses that wait on the sidelines risk being left behind, while those who adapt can capture new growth.

The bigger picture

The future isn’t crypto versus fiat. It’s cryptocurrency and fiat. The race isn’t about which one “wins.” It’s about who can deliver the best customer experience, who can build regulatory trust, and who can achieve global reach.

We’re heading toward a blended financial ecosystem where businesses and consumers can choose whichever method best suits their needs. The question isn’t if cryptocurrency and fiat will coexist. The only question is how quickly we can make it seamless.