Cryptocurrencies are getting even weirder—and more real

Taking crypto to the bank ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

Currency events The news • Fun with fractions. The latest crypto trend is currencies in tiny denominations. One cryptocurrency, for example, recently cost about $0.00004893 each. Decimalization is a marketing strategy because traders who buy millions of, say, Dogecoin for under a penny can fantasize about the currency going to $1. [Bloomberg] • Crypto in the house. A small crop of entrepreneurs is betting that brick-and-mortar crypto exchanges will ease consumers into setting up digital wallets and learning how to trade. In the US, customers already use more than 24,000 crypto ATMs, but physical exchanges are still rare. Even so, operators of storefront exchanges report strong transaction volume and some growth. [WSJ] Although the value of cryptocurrencies now exceeds $2 trillion, shortcomings such as extreme price volatility have impeded their utility.  Our insights • Why it matters. Cryptocurrencies generate billions of dollars in global transaction volume every day but are plagued by volatility and often slow transactions. By pegging their value to an underlying asset, stablecoins—private, stabilized cryptocurrencies—aim to address these shortcomings. The circulation of stablecoins has risen rapidly, with nearly $3 trillion in stablecoins transacted in the first half of 2021. • Programmable money. In the past few years, central banks have stepped up efforts to explore their own stable digital currencies. In addition to addressing greater financial inclusion, some governments view these digital currencies as programmable money—vehicles for monetary and social policy. See our article for six steps that participants in the payments ecosystem can take to prepare for the coming changes. —Edited by Katy McLaughlin Ante in Was this forwarded to you? Sign up here. Or send us feedback — we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007