5 predictions for the future of payments

An interesting read over at the World Economic Forum.

A couple roadblocks standing in the way of digital currencies replacing traditional ones.

"First, customers need an economic incentive to use these digital currencies, but up until now the cost saving has mainly been for merchants. Second, the value of digital currencies can be volatile, which exposes customers to exchange rate risks; as a result, many people hesitate to keep their money in those digital currencies. Finally, a range of issues, including negative press, digital wallet systems with unwieldy user experiences, and a relatively small number of ways to convert dollars to bitcoins make a customer’s first foray into the realm of digital currencies a high hurdle to clear. All of these challenges are clearly solvable, and lots of dynamic start-ups are currently hard at work solving them – but they do present a significant challenge to the adoption of digital currencies by retail customers in the short term."