New Blog Test

Bitcoin vs Gold: Which is Better?

Curious whether Bitcoin or gold is the better bet? We break down the pros, cons, and what really sets them apart so you can decide what suits you best.

Keep reading

Bitcoin versus gold: it's like asking whether you prefer chocolate or vanilla ice cream, except the stakes feel a bit higher when we're talking about assets that people use to preserve wealth.

This comparison has become one of the most fascinating conversations in modern finance. You'll find everyone from your tech-savvy nephew to seasoned Wall Street veterans weighing in on this debate. The reason it captures so much attention? Both assets serve similar purposes for many people in that they're often viewed as alternatives to traditional currencies and ways to maintain value over time.

Media outlets regularly feature this matchup, and it's not hard to see why. We're essentially watching a clash between the old guard and the new kid on the block, between something you can hold in your hands and something that exists purely in the digital realm.

Similarities between Bitcoin and gold

Before we dive into their differences, let's talk about what these two have in common, and honestly, it's more than you might think.

Both Bitcoin and gold operate like that friend who marches to the beat of their own drum. They don't need permission from central banks or governments to exist. Gold has been doing its own thing for thousands of years, while Bitcoin has been independently chugging along since 2009, free from the control of any single authority.

Here's where it gets interesting: both are naturally scarce. There's only so much gold buried in the earth, and Bitcoin has a built-in limit of 21 million coins. It's like having a limited-edition collectible - the scarcity is part of what makes people pay attention.

This is where the "digital gold" nickname comes from. People started calling Bitcoin this because, like gold, it's rare, it's not controlled by governments, and many view it as a way to store value. It could be gold's tech-savvy cousin who traded in the physical form for a digital existence.

Both assets have also been described as stores of value, meaning people turn to them when they want to preserve their purchasing power over time. The idea is that what you put in today will still hold meaningful value tomorrow.

Differences in utility and form

Gold has been humanity's companion for millennia. You can touch it, wear it, and even use it in your smartphone (yes, there's actually gold in there!). Industries rely on gold for everything from electronics to medical equipment. Central banks stack it in their vaults like a financial security blanket, and jewellers craft it into pieces that mark life's special moments.

Bitcoin, on the other hand, exists purely in the digital world. You can't hold it, but you can send it across the globe faster than you can say "blockchain." It's supported by a network of computers that work together to verify transactions, creating a system that operates 24/7 without taking coffee breaks.

Think of gold as the sturdy oak tree: deeply rooted, physically present, and serving multiple purposes. Bitcoin is more like the wind: you can't see it, but you can feel its effects, and it moves with incredible speed and efficiency.

Historical trends and market behaviour

Let’s take a look at how these assets have behaved over time.

Gold has earned a reputation as the steady friend who shows up when times get tough. During economic uncertainty, gold often sees increased interest as people seek stability.

Bitcoin, meanwhile, is known for its dramatic personality. It can swing from exhilarating highs to stomach-dropping lows, sometimes within the same week. This volatility means Bitcoin can experience significant price movements: some days it feels like it's reaching for the stars, other days it seems to be taking a scenic route through the valleys.

These different personalities mean they each attract different types of attention and serve different roles in people's financial lives.

Reactions to global events

Nothing reveals character quite like a crisis, and both Bitcoin and gold have had their share of testing moments.

During the 2008 financial crisis, gold saw increased demand as people sought alternatives to traditional investments. When the COVID-19 pandemic hit in 2020, gold initially attracted attention as uncertainty gripped global markets.

Bitcoin has had its own unique responses to global events. During certain periods of economic uncertainty, some have turned to Bitcoin as an alternative. However, during market stress, Bitcoin has sometimes moved in unexpected directions, reminding everyone that this digital asset often writes its own rules.

Inflationary periods have also provided interesting case studies. Gold has historically been viewed as a hedge against inflation, while Bitcoin's response has been more varied and unpredictable. The Bitcoin vs gold debate is essentially watching two different strategies play out in real-time.

Adoption and access

The way people access these assets tells its own story about our changing world.

Bitcoin has recently been making headlines with the introduction of exchange-traded funds (ETFs), making it easier for traditional investors to gain exposure without having to figure out digital wallets and private keys.

The digital nature of Bitcoin means you can access it from anywhere with an internet connection. No need to worry about storage space or security guards - just remember your password (and any other safeguards you have in place).

Gold, meanwhile, has the advantage of thousands of years of infrastructure. Banks have vaults, dealers have established networks, and there's a whole industry built around buying, selling, and storing the precious metal.

Risks and transparency

Every asset comes with its own set of considerations, and both Bitcoin and gold have their unique profiles.

Bitcoin operates in a world where regulations are still being written. There are also cybersecurity considerations, as digital assets exist in a realm where hackers and technical glitches can pose risks.

Gold has more traditional concerns. Storage and insurance can be costly, and there's always the physical risk of theft or damage. You need to think about where to keep it safe and how to protect it.

Both assets have their own transparency characteristics. Bitcoin transactions are recorded on a public ledger that anyone can view, while gold transactions often happen through traditional channels with varying levels of public visibility.

Perspectives from experts

The financial world is full of smart people with different opinions, and this topic certainly brings out diverse viewpoints.

Institutions like BlackRock have entered the Bitcoin space with ETF offerings, suggesting growing institutional interest. While the CME Group, which offers futures contracts for both assets, has observed how institutional trading has evolved for each.

These expert perspectives form part of a broader ongoing conversation about how these assets might fit into the modern financial landscape.

What's fascinating is how these viewpoints continue to evolve as both assets mature and as global economic conditions change.

Framing the question: what role might each play?

Rather than asking which is "better," perhaps the more interesting question is: what role might each play in different contexts?

Consider what qualities matter most to you in a store of value. Are you drawn to the tangible nature of physical assets, or does the digital convenience appeal to you? How do you feel about volatility: is it something you can live with, or do you prefer steadier movements?

The answer often depends on individual circumstances, goals, and comfort levels. Some people find comfort in gold's long history, while others are excited by Bitcoin's technological innovation. Some appreciate gold's physical nature, while others value Bitcoin's portability and accessibility.

These aren't questions with universal answers, they're personal considerations that vary from person to person.

Final thoughts

The Bitcoin versus gold discussion continues to evolve as both assets mature and as our understanding of their roles in modern finance deepens. Rather than viewing this as a winner-take-all scenario, perhaps the most interesting approach is to understand how each asset's unique characteristics might serve different purposes in our increasingly complex financial world.

What matters most is understanding your own needs, risk tolerance, and goals before making any financial decisions. After all, the best asset is the one that aligns with your personal circumstances and financial objectives.

‍

NEWS AND UPDATES

Tap's Crypto Monday (1 - 7 July)

What's driving the crypto market this week? Get fast, clear updates on the top coins, market trends, and regulation news.

Welcome to Tap’s weekly crypto market recap.

Here are the biggest stories from last week (1 - 7 July).

💥 XRP Jumps above $2.30 on rumours SEC may drop Ripple appeal

XRP jumped to $2.3144 on 3 July amid speculation that the SEC might drop its appeal against Ripple, fueling investor optimism. Although no announcement followed, XRP still closed the day up 1.1%, outperforming the broader market.

Legal experts suggest both parties could soon dismiss their appeals without court approval, though some warn the process may take weeks. A breakout above $2.3275 could trigger a run toward $3.3999, last seen in January.

🚀 Bitcoin briefly tops $110K on strong jobs report and ETF inflows

Bitcoin surged to $110,591 on 3 July after a strong U.S. jobs report boosted investor confidence in the economy. The rally was reinforced by $377 million in daily inflows into U.S. spot Bitcoin ETFs, led by Fidelity, ARK 21Shares, and Bitwise.

Despite briefly pulling back, BTC is currently trading at $109,170, signalling continued strength amid favourable macro and institutional demand. Trading just 2.4% below its all-time high, analysts see potential for a new ATH if bullish momentum persists.

🧨 Rise in crypto-related physical crime

As digital wealth grows, there has been a surge in real-world heists - kidnappings and home invasions targeting crypto holders. Over 231 such attacks have been reported in the last 18 months, prompting many to seek increased personal security measures.

🪙 Launch of the first U.S. Solana ETF with staking: REX-Osprey Solana + Staking ETF (SSK)

This new Cboe-listed ETF gives U.S. investors direct, staked exposure to SOL (~7.3% earning yield), albeit with higher fees (1.4%). Approval sets a precedent for future niche crypto ETFs

🔍 Altcoin watchlist & meme‑coin hype for July

Market analysts are watching several altcoins (e.g. Maple Finance’s SYRUP, Hyperliquid’s HYPE, Solana memecoins like FARTCOIN) and XRP as potential breakout assets in July, backed by technical setups and macro sentiment.

Decoding the disconnect: America's cautious approach to crypto
‍

Bitcoin and the broader crypto market have soared to a staggering $2.1 trillion in value, but why does skepticism still linger among so many Americans?

Despite increasing adoption, digital currencies remain shrouded in doubt, revealing a significant trust gap that continues to challenge the industry. As cryptocurrencies become more woven into everyday financial transactions, closing this trust deficit is essential for ensuring sustained growth and mainstream acceptance.

In this article, we'll dive into the key reasons behind this persistent mistrust, uncover the expanding real-world uses of digital assets, and explore how education and technological advancements can help bridge the confidence gap. Keep in mind, the data presented draws from multiple studies, so some figures and age groupings may vary slightly.

A Look at the Current State of Crypto Trust

To truly understand cryptocurrency adoption and the accompanying trust issues, it’s essential to examine the latest statistics and demographic data. This section breaks down public sentiment toward crypto and provides a snapshot of its user base.

General Public Sentiment

Percentage of Americans Who Own Cryptocurrency

Cryptocurrency adoption has seen slow but steady growth over the years. According to surveys conducted by Pew Research Center in 2021 and 2023, 17% of Americans have invested in, traded, or used cryptocurrency, up slightly from 16% in 2021.

While estimates vary, Security.org places this figure higher, estimating that roughly 40% of the U.S. population - around 93 million adults - own some form of cryptocurrency.

Both studies agree that younger generations are driving much of this growth, with 30% of Americans aged 18-29 reporting they have experience with crypto.

Trust Levels in Cryptocurrency

Despite rising adoption rates, trust in cryptocurrency remains a significant hurdle. Pew Research Center found that 75% of Americans have little or no confidence that cryptocurrency exchanges can safeguard their funds. Similarly, a recent report by Morning Consult shows that 7 in 10 consumers familiar with crypto express low or no trust in it.

This contrasts the 31% who have some or high trust, or the 24% in the Pew study who are “somewhat” to “extremely” confident in cryptocurrencies.

‍

Demographics of Crypto Adopters

Age Groups

Cryptocurrency adoption trends reveal a distinct generational divide. According to the 2023 Morning Consult survey, Gen Z adults (ages 18-25) lead in crypto ownership at 36%, closely followed by Millennials at 30%.

These younger groups are also more inclined toward future investments, with 39% of Gen Z and 45% of Millennials planning to invest in crypto in the coming years. Over half of both generations view cryptocurrency and blockchain as the future, while a notable percentage (27% of Gen Z and 21% of Millennials) considered opening an account with a crypto exchange in the past year.

When compared to other asset classes, data from Bankrate’s 2021 survey reveals that younger Millennials (ages 25-31) favor real estate and stock market investments, while Baby Boomers have the least interest in cryptocurrency. Older Millennials (32-40) lean toward cash investments, with cryptocurrency’s appeal steadily declining with age.

Interestingly, the report also highlights gender differences, showing that 80% of women familiar with crypto express low confidence, compared to 71% of men, indicating a broader trust gap among female users.

Income Levels

Contrary to common assumptions, cryptocurrency adoption is not confined to high-income individuals. The same Pew Research Center survey revealed that crypto ownership is relatively evenly spread across income brackets:

13% of those earning less than $56,600 annually own crypto.
19% of those earning between $56,600 and $169,800 own crypto.
22% of those earning over $169,800 own crypto.

This data suggests that while higher earners may be more inclined to own cryptocurrency, the appeal of digital assets spans various income levels.

Educational Background

Education also plays a role in crypto adoption. A 2022 report by Triple-A found that the majority of crypto owners are “highly educated”:

24% of crypto owners have graduated from middle or high school.
10% have some vocational or college education.
39% are college graduates.
27% hold postgraduate degrees.

This shows that while those with some college education or a degree are more likely to own crypto, it is not exclusively a pursuit of the highly educated.

This demographic data paints a picture of cryptocurrency adopters as predominantly younger, spread across a range of income levels, and with diverse educational backgrounds. However, the trust gap between crypto and traditional financial systems remains a significant barrier to wider acceptance of digital assets.

‍

Key Trust Barriers

To bridge the gap between cryptocurrency adoption and trust, it’s crucial to understand the major concerns fueling skepticism. This section explores these concerns and contrasts them with similar risks in traditional financial systems.

The Primary Concerns of Skeptics

Volatility

One of the most significant barriers to cryptocurrency adoption is its notorious volatility, particularly for investors seeking stable, long-term assets. Bitcoin, the most well-known cryptocurrency, symbolizes this risk.

In 2022, Bitcoin’s volatility was stark. Its 30-day volatility reached 64.02% in June, driven by broader economic uncertainty and market downturns, compared to the S&P 500’s much lower volatility of 4.71% during the same period.

Over the course of the year, Bitcoin’s price swung from a peak of $47,835 to a low of $18,490, marking a substantial 61% decline from its highest point in 2022. Factors such as rising interest rates, geopolitical tensions, and major crypto market disruptions, like the TerraUSD collapse and Celsius’ liquidity crisis, played a pivotal role.

This extreme volatility reinforces the perception of cryptocurrencies as high-risk investments.

However, traditional stock markets, while typically more stable than crypto, can also experience sharp fluctuations, especially in times of economic stress. For instance, the CBOE Volatility Index (VIX), which measures expected near-term volatility in the U.S. stock market, dropped by 23% to 28.71 on June 30, 2022, far below the 82.69 peak recorded during the early COVID-19 market turbulence in March 2020. This shows that even stock markets, generally seen as safer, can experience moments of intense volatility, particularly during global crises.

Additionally, when compared to the "Magnificent Seven" (a group of top-performing and influential stocks) Bitcoin’s volatility doesn't stand out as unusual. In fact, over the past two years, Bitcoin has shown less volatility than Netflix (NFLX) stock.

On a 90-day timeframe, NFLX had an average realized volatility of 53%, while Bitcoin’s was slightly lower at 46%. The reality is that among all S&P 500 companies, Bitcoin has demonstrated lower annualized historical volatility than 33 of the 503 constituents.

In October 2023, Bitcoin was actually less volatile than 92 stocks in the S&P 500, based on 90-day realized historical volatility figures, including some large-cap and mega-cap companies.

Security

Security concerns are another major hurdle in building trust with cryptocurrencies. Cryptocurrency exchanges and wallets have been targeted by numerous high-profile hacks and frauds, raising doubts about the safety of digital assets. It comes as no surprise that a study from Morning Consult found that 67% of Americans believe having a secure and trustworthy platform is essential to entering the crypto market.

While security threats in the crypto space are well-documented, traditional banking systems are not immune to fraud either. Federal Trade Commission data reveals that consumer fraud losses in the traditional financial sector hit a record high of $10 billion in 2023, marking a 14% increase from the previous year.

Although traditional banks have more safeguards in place to protect consumers, they remain vulnerable to attacks, showing that security is a universal challenge across both crypto and traditional finance.

Prevention remains key, which in this case equates to using only reliable platforms or hardwallets.

Regulatory Uncertainty

Regulatory ambiguity continues to be a critical barrier for both cryptocurrency investors and businesses. The evolving landscape creates uncertainty about the future of digital assets.

Currently, cryptocurrency is legal in 119 countries and four British Overseas Territories, covering more than half of the world’s nations. Notably, 64.7% of these countries are emerging and developing economies, primarily in Asia and Africa.

However, only 62 of these 119 countries (52.1%) have comprehensive regulations in place. This represents significant growth from 2018, when only 33 jurisdictions had formal regulations, showing a 53.2% increase, but still falls short in creating a sense of “unified safety”.

In the United States, regulatory views remain fragmented. Various agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have conflicting perspectives on how to classify and regulate cryptocurrencies. Since 2019, the SEC has filed over 116 crypto-related lawsuits, adding to the regulatory uncertainty faced by the industry.

‍

The Growing Integration Of Digital Assets In Daily Life

As we progress further into the digital age, cryptocurrencies and digital assets are increasingly becoming part of our everyday financial transactions. This shift is driven by two key developments: the rise of crypto payment options and the growing adoption of Central Bank Digital Currencies (CBDCs).

According to a MatrixPort report, global cryptocurrency adoption has now reached 7.51% of the population, underscoring the expanding influence of digital currencies worldwide. By 2025, this rate is expected to surpass 8%, signaling a potential shift from niche usage to mainstream acceptance.

The list of major retailers embracing cryptocurrency as a payment method continues to grow. Some notable companies now accepting crypto include:

Microsoft: Accepts Bitcoin for Xbox store credits.
AT&T: The first major U.S. mobile carrier to accept crypto payments.
Whole Foods: Accepts Bitcoin via the Spedn app.
Overstock: One of the first major retailers to accept Bitcoin.
Starbucks: Allows customers to load their Starbucks cards with Bitcoin through the Bakkt app.

A 2022 Deloitte survey revealed that nearly 75% of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years. This trend highlights the growing mainstream acceptance of digital assets as a legitimate payment method.

Crypto-backed debit cards are further bridging the gap between digital assets and everyday transactions. These cards enable users to spend their cryptocurrency at any merchant that accepts traditional debit cards.

According to Factual Market Research, the global crypto card market is projected to reach $9.5 billion by 2030, with a compound annual growth rate (CAGR) of approximately 31.6% from 2021 to 2030. This growth reflects the increasing popularity of crypto-backed debit cards as a way for consumers to integrate their digital assets into daily spending.

The Rise of Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies (CBDCs) represent digital versions of a country’s fiat currency, issued and regulated by the national monetary authority. In 2024, the global progress of CBDCs has seen a significant uptick, with marked advances in both research and adoption. As of this year:

11 countries have fully launched CBDCs, including the Bahamas, Nigeria, Jamaica, and China.
44 countries are conducting pilot programs, up from 36, reflecting growing interest in testing the functionality and stability of digital currencies.
66 nations are at advanced stages of CBDC development, contributing to a global landscape where 134 countries (accounting for 98% of the world’s economy) are engaged in CBDC projects.

In the United States, the Federal Reserve is exploring the feasibility of a CBDC through Project Hamilton, a collaborative research initiative with MIT. This exploration aligns with broader goals to reduce reliance on cash, enhance financial inclusion, and improve control over national monetary systems amid the rise of digital payments and cryptocurrencies.

The introduction of CBDCs could significantly reshape daily financial transactions in several ways:

Increased financial inclusion: CBDCs could offer digital payment access to the 1.4 billion adults who remain unbanked, according to World Bank estimates.
Faster and cheaper transactions: CBDCs could streamline both domestic and cross-border payments, reducing costs and settlement times.
Enhanced monetary policy: Central banks would gain more direct control over money supply and circulation.
Improved traceability: CBDCs could help combat financial crimes and reduce tax evasion by providing greater transaction transparency.

However, challenges persist, including concerns about privacy, cybersecurity risks, and the potential disruption of existing banking systems.

As digital assets continue to integrate into everyday life, they hold the potential to transform how we think about and use money. Despite these challenges, trends in both private cryptocurrency adoption and CBDC development point to a future where digital assets play a central role in our financial systems.

‍

Building Trust Through Technology and Education

According to the 2023 Web3 UI/UX Report, nearly 48% of users cite security concerns and asset protection as the primary barriers to crypto adoption. Other challenges include high transaction fees and the steep learning curve needed to fully grasp both the technology and its benefits.

Despite these obstacles, the blockchain sector has made significant strides as it matures, particularly in enhancing security. Hack-related losses in the crypto market dropped from $3.7 billion in 2022 to $1.8 billion in 2023, underscoring the progress in safeguarding digital assets.

The increased adoption of offline hardware wallets and multi-signature wallets, both of which add critical layers of security, reflects this momentum. Advances in smart contract auditing tools and stronger compliance standards are also minimizing risks, creating a safer environment for both users and institutions.

These improvements highlight the industry’s commitment to establishing a more secure foundation for digital transactions and bolstering confidence in blockchain as a reliable financial technology.

In another positive development, in May 2023, the European Council approved the first comprehensive legal framework for the cryptocurrency industry. This legislation sets a new standard for regulatory transparency and oversight, further reinforcing trust.

Financial Literacy Initiatives

The rise of crypto education in the U.S. is playing a pivotal role in increasing public understanding and encouraging adoption. Programs such as Coinbase Earn aim to simplify the onboarding process for new users, directly addressing the complexity and security concerns that often deter people from engaging with crypto.

According to recent data, 43% of respondents feel that insufficient knowledge is a key reason they avoid the sector, highlighting the ongoing need for crypto-related learning.

Additionally, Chainalysis' 2024 Global Crypto Adoption Index noted a significant increase in crypto interest following the launch of spot Bitcoin ETFs in the U.S. earlier in the year. This development enabled investors to trade ETF shares tied to Bitcoin directly on stock exchanges, making it easier to enter the market without needing extensive technical expertise - thus driving a surge in adoption.

These advancements in security and education are gradually fostering greater trust in the cryptocurrency ecosystem. As the sector continues to evolve, these efforts may pave the way for broader adoption and deeper integration of digital assets into daily financial life.

The Future of Digital Asset Adoption

As digital assets continue to evolve and capture mainstream attention, their potential to transform the financial landscape is becoming increasingly evident. From late 2023 through early 2024, global crypto transaction volumes surged, surpassing the peaks of the 2021 bull market (as illustrated below).

Interestingly, much of this growth in adoption was driven by lower-middle income countries, highlighting the global reach of digital assets.

Below, we explore projections for cryptocurrency usage and its potential impact on traditional banking and finance.

Projections for Crypto Usage in the Next 5-10 Years

Several studies and reports offer insights into the expected growth of cryptocurrency over the next decade:

Global Adoption
The global cryptocurrency market revenue is projected to reach approximately $56.7 billion in 2024, with the United States leading the charge, expected to generate around $9.8 billion in revenue. Statista predicts the number of global crypto users will hit 861 million by 2025, marking a significant shift toward mainstream use.

Institutional Adoption
The 2023 Institutional Investor Digital Assets Study found that 65% of the 1,042 institutional investors surveyed plan to buy or invest in digital assets in the future.

As of 2024, digital currency usage among U.S. organisations is expanding, particularly in sectors such as finance, retail, and technology. Hundreds of financial services and fintech firms are now involved in digital assets, whether in payment processing, investments, or blockchain-based applications. This includes major companies utilising cryptocurrencies as stored value and exploring stablecoin use cases to enhance transaction efficiency.

Notably, major U.S. companies are increasingly engaging with blockchain and digital assets, as regulatory clarity improves and security concerns are addressed.

Retail Adoption
At present, about 85% of major retailers generating over $1 billion in annual online sales accept cryptocurrency payments. In contrast, 23% of mid-sized retailers, with online sales between $250 million and $1 billion, currently accept crypto payments. This growing trend points to an expanding role for digital assets in retail, especially among large-scale businesses.

Potential Impact on Traditional Banking and Finance

The rise of digital asset utilisation is poised to reshape traditional banking systems in multiple areas. For starters, the growth of blockchain technology and digitised financial services is driving the decentralised finance (DeFi) market, which is projected to reach $450 billion by 2030, with a compound annual growth rate (CAGR) of 46%.

In Q3 2024 alone, trading on decentralised exchanges surpassed $100 billion, marking the third consecutive month of growth in trading volume. This trend underscores the increasing interest and activity in the decentralised finance space.

As Central Bank Digital Currencies (CBDCs) are likely to be adopted by 80% of central banks by 2030, the role of commercial banks in money distribution could diminish significantly. Meanwhile, blockchain technology and stablecoins are expected to revolutionise cross-border B2B payments, with 20% of these transactions powered by blockchain by 2025. Stablecoin payment volumes are projected to hit $620 billion by 2026.

Furthermore, the investment landscape is set to evolve as asset tokenisation scales, potentially reaching a value of $16 trillion, making crypto a standard component in investment portfolios.

With regulatory clarity expected to improve - more than half of financial institutions anticipate clearer rules within the next three years - crypto integration is likely to become more widespread. These developments emphasise the transformative potential of digital assets across payments, investments, and financial structures globally.

Bridging the trust gap in crypto adoption

The cryptocurrency landscape is experiencing a surge in institutional interest, which could be a pivotal moment for integrating digital assets into traditional finance. Financial giants like BlackRock are at the forefront of this movement, signaling a shift in mainstream perception and adoption of cryptocurrencies.

Historically, the introduction of new investment vehicles around Bitcoin has spurred market growth. As Markus Thielen, founder of 10x Research, highlights, the launch of spot ETFs could bring about a new wave of institutional involvement, potentially driving the next phase of market expansion.

This growing institutional momentum, combined with evolving regulatory frameworks, is reshaping the crypto ecosystem. However, a key question remains: Will these developments be enough to close the trust gap and push cryptocurrencies into mainstream adoption?

As we stand at this crossroads, the future of digital assets hangs in the balance. The coming years will be critical in determining whether cryptocurrencies can overcome persistent skepticism and fully integrate into the global financial system, or if they will remain a niche, yet impactful, financial instrument.
‍

‍

Millennials and Gen Z: The Catalysts of the Money Revolution?

Millennials and Gen Z are revolutionizing the financial landscape, leveraging cryptocurrencies to challenge traditional systems and redefine money itself. Curious about how this shift affects your financial future? Let's uncover the powerful changes they’re driving!

The financial world is undergoing a significant transformation, largely driven by Millennials and Gen Z. These digital-native generations are embracing cryptocurrencies at an unprecedented rate, challenging traditional financial systems and catalysing a shift toward new forms of digital finance, redefining how we perceive and interact with money.

This movement is not just a fleeting trend but a fundamental change that is redefining how we perceive and interact with money.

Digital Natives Leading the Way

Growing up in the digital age, Millennials (born 1981-1996) and Gen Z (born 1997-2012) are inherently comfortable with technology. This familiarity extends to their financial behaviours, with a noticeable inclination toward adopting innovative solutions like cryptocurrencies and blockchain technology.

According to the Grayscale Investments and Harris Poll Report which studied Americans, 44% agree that “crypto and blockchain technology are the future of finance.” Looking more closely at the demographics, Millenials and Gen Z’s expressed the highest levels of enthusiasm, underscoring the pivotal role younger generations play in driving cryptocurrency adoption.

Desire for Financial Empowerment and Inclusion

Economic challenges such as the 2008 financial crisis and the impacts of the COVID-19 pandemic have shaped these generations' perspectives on traditional finance. There's a growing scepticism toward conventional financial institutions and a desire for greater control over personal finances.

The Grayscale-Harris Poll found that 23% of those surveyed believe that cryptocurrencies are a long-term investment, up from 19% the previous year. The report also found that 41% of participants are currently paying more attention to Bitcoin and other crypto assets because of geopolitical tensions, inflation, and a weakening US dollar (up from 34%).

This sentiment fuels engagement with cryptocurrencies as viable investment assets and tools for financial empowerment.

Influence on Market Dynamics

The collective financial influence of Millennials and Gen Z is significant. Their active participation in cryptocurrency markets contributes to increased liquidity and shapes market trends. Social media platforms like Reddit, Twitter, and TikTok have become pivotal in disseminating information and investment strategies among these generations.

The rise of cryptocurrencies like Dogecoin and Shiba Inu demonstrates how younger investors leverage online communities to impact financial markets². This phenomenon shows their ability to mobilise and drive market movements, challenging traditional investment paradigms.

Embracing Innovation and Technological Advancement

Cryptocurrencies represent more than just investment opportunities; they embody technological innovation that resonates with Millennials and Gen Z. Blockchain technology and digital assets are areas where these generations are not only users but also contributors.

A 2021 survey by Pew Research Center indicated that 31% of Americans aged 18-29 have invested in, traded, or used cryptocurrency, compared to just 8% of those aged 50-64. This significant disparity highlights the generational embrace of digital assets and the technologies underpinning them.

Impact on Traditional Financial Institutions

The shift toward cryptocurrencies is prompting traditional financial institutions to adapt. Banks, investment firms, and payment platforms are increasingly integrating crypto services to meet the evolving demands of younger clients.

Companies like PayPal and Square have expanded their cryptocurrency offerings, allowing users to buy, hold, and sell cryptocurrencies directly from their platforms. These developments signify the financial industry's recognition of the growing importance of cryptocurrencies.

Challenges and Considerations

While enthusiasm is high, challenges such as regulatory uncertainties, security concerns, and market volatility remain. However, Millennials and Gen Z appear willing to navigate these risks, drawn by the potential rewards and alignment with their values of innovation and financial autonomy.

In summary

Millennials and Gen Z are redefining the financial landscape, with their embrace of cryptocurrencies serving as a catalyst for broader change. This isn't just about alternative investments; it's a shift in how younger generations view financial systems and their place within them. Their drive for autonomy, transparency, and technological integration is pushing traditional institutions to innovate rapidly.

This generational influence extends beyond personal finance, potentially reshaping global economic structures. For industry players, from established banks to fintech startups, adapting to these changing preferences isn't just advantageous—it's essential for long-term viability.

As cryptocurrencies and blockchain technology mature, we're likely to see further transformations in how society interacts with money. Those who can navigate this evolving landscape, balancing innovation with stability, will be well-positioned for the future of finance. It's a complex shift, but one that offers exciting possibilities for a more inclusive and technologically advanced financial ecosystem. The financial world is changing, and it's the young guns who are calling the shots.

Understanding the crypto Travel Rule's role

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.

What is the "Travel Rule"?

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Well, let me break it down for you. The Travel Rule, also known as FATF Recommendation 16, is a set of measures aimed at combating money laundering and terrorism financing through financial transactions.

So, why is it called the Travel Rule? It's because the personal data of the transacting parties "travels" with the transfers, making it easier for authorities to monitor and regulate these transactions. See, now it all makes sense!

The Travel Rule applies to financial institutions engaged in virtual asset transfers and crypto companies, collectively referred to as virtual asset service providers (VASPs). These VASPs have to obtain and share "required and accurate originator information and required beneficiary information" with counterparty VASPs or financial institutions during or before the transaction.

To make things more practical, the FATF recommends that countries adopt a de minimis threshold of 1,000 USD/EUR for virtual asset transfers. This means that transactions below this threshold would have fewer requirements compared to those exceeding it.

For transfers of Virtual Assets falling below the de minimis threshold, Virtual Asset Service Providers (VASPs) are required to gather:

The identities of the sender (originator) and receiver (beneficiary).
Either the wallet address associated with each transaction involving Virtual Assets (VAs) or a unique reference number assigned to the transaction.
Verification of this gathered data is not obligatory, unless any suspicious circumstances concerning money laundering or terrorism financing arise. In such instances, it becomes essential to verify customer information.

Conversely, for transfers surpassing the de minimis threshold, VASPs are obligated to collect more extensive particulars, encompassing:

Full name of the sender (originator).
The account number employed by the sender (originator) for processing the transaction, such as a wallet address.
The physical (geographical) address of the sender (originator), national identity number, a customer identification number that uniquely distinguishes the sender to the ordering institution, or details like date and place of birth.
Name of the receiver (beneficiary).
Account number of the receiver (beneficiary) utilized for transaction processing, similar to a wallet address.

By following these guidelines, virtual asset service providers can contribute to a safer and more transparent virtual asset ecosystem while complying with international regulations on anti-money laundering and countering the financing of terrorism. It's all about ensuring the integrity of financial transactions and safeguarding against illicit activities.

Implementation of the Travel Rule in the United Kingdom

A notable shift is anticipated in the United Kingdom's oversight of the virtual asset sector, commencing September 1, 2023.

This seminal development comes in the form of the Travel Rule, which falls under Part 7A of the Money Laundering Regulations 2017. Designed to combat money laundering and terrorist financing within the virtual asset industry, this new regulation expands the information-sharing requirements for wire transfers to encompass virtual asset transfers.

The HM Treasury of the UK has meticulously customized the provisions of the revised Wire Transfer Regulations to cater to the unique demands of the virtual asset sector. This underscores the government's unwavering commitment to fostering a secure and transparent financial ecosystem. Concurrently, it signals their resolve to enable the virtual asset industry to flourish.

The Travel Rule itself originates from the updated version of the Financial Action Task Force's recommendation on information-sharing requirements for wire transfers. By extending these recommendations to cover virtual asset transfers, the UK aspires to significantly mitigate the risk of illicit activities within the sector.

Undoubtedly, the Travel Rule heralds a landmark stride forward in regulating the virtual asset industry in the UK. By extending the ambit of information-sharing requirements and fortifying oversight over virtual asset firms‍

Implementation of the Travel Rule in the European Union‍

Prepare yourself, as a new regulation called the Travel Rule is set to be introduced in the world of virtual assets within the European Union. Effective from December 30, 2024, this rule will take effect precisely 18 months after the initial enforcement of the Transfer of Funds Regulation.

Let's delve into the details of the Travel Rule. When it comes to information requirements, there will be no distinction made between cross-border transfers and transfers within the EU. The revised Transfer of Funds regulation recognizes all virtual asset transfers as cross-border, acknowledging the borderless nature and global reach of such transactions and services.

Now, let's discuss compliance obligations. To ensure adherence to these regulations, European Crypto Asset Service Providers (CASPs) must comply with certain measures. For transactions exceeding 1,000 EUR with self-hosted wallets, CASPs are obligated to collect crucial originator and beneficiary information. Additionally, CASPs are required to fulfill additional wallet verification obligations.

The implementation of these measures within the European Union aims to enhance transparency and mitigate potential risks associated with virtual asset transfers. For individuals involved in this domain, it is of utmost importance to stay informed and adhere to these new guidelines in order to ensure compliance.

‍What does the travel rules means to me as user? ‍

As a user in the virtual asset industry, the implementation of the Travel Rule brings some significant changes that are designed to enhance the security and transparency of financial transactions. This means that when you engage in virtual asset transfers, certain personal information will now be shared between the involved parties. While this might sound intrusive at first, it plays a crucial role in combating fraud, money laundering, and terrorist financing.

The Travel Rule aims to create a safer environment for individuals like you by reducing the risks associated with illicit activities. This means that you can have greater confidence in the legitimacy of the virtual asset transactions you engage in. The regulation aims to weed out illicit activities and promote a level playing field for legitimate users. This fosters trust and confidence among users, attracting more participants and further driving the growth and development of the industry.

However, it's important to note that complying with this rule may require you to provide additional information to virtual asset service providers. Your privacy and the protection of your personal data remain paramount, and service providers are bound by strict regulations to ensure the security of your information.

In summary, the Travel Rule is a positive development for digital asset users like yourself, as it contributes to a more secure and trustworthy virtual asset industry.

‍Unlocking Compliance and Seamless Experiences: Tap's Proactive Approach to Upcoming Regulations‍

Tap is fully committed to upholding regulatory compliance, while also prioritizing a seamless and enjoyable customer experience. In order to achieve this delicate balance, Tap has proactively sought out partnerships with trusted solution providers and is actively engaged in industry working groups. By collaborating with experts in the field, Tap ensures it remains on the cutting edge of best practices and innovative solutions.

These efforts not only demonstrate Tap's dedication to compliance, but also contribute to creating a secure and transparent environment for its users. By staying ahead of the curve, Tap can foster trust and confidence in the cryptocurrency ecosystem, reassuring customers that their financial transactions are safe and protected.

But Tap's commitment to compliance doesn't mean sacrificing user experience. On the contrary, Tap understands the importance of providing a seamless journey for its customers. This means that while regulatory requirements may be changing, Tap is working diligently to ensure that users can continue to enjoy a smooth and hassle-free experience.

By combining a proactive approach to compliance with a determination to maintain user satisfaction, Tap is setting itself apart as a trusted leader in the financial technology industry. So rest assured, as Tap evolves in response to new regulations, your experience as a customer will remain top-notch and worry-free.

‍

What is a CBDC?

Unveiling the future of money: Explore the game-changing Central Bank Digital Currencies and their potential impact on finance.

Since the debut of Bitcoin in 2009, central banks have been living in fear of the disruptive technology that is cryptocurrency. Distributed ledger technology has revolutionized the digital world and has continued to challenge the corruption of central bank morals.

Financial institutions can’t beat or control cryptocurrency, so they are joining them in creating digital currencies. Governments have now been embracing digital currencies in the form of CBDCs, otherwise known as central bank digital currencies.

Central bank digital currencies are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country's fiat currency, acting as a digital currency version of the national currency. CBDCs are created and regulated by a country's central bank and monetary authorities.

A central bank digital currency is generally created for a sense of financial inclusion and to improve the application of monetary and fiscal policy. Central banks adopting currency in digital form presents great benefits for the federal reserve system as well as citizens, but there are some cons lurking behind the central bank digital currency facade.

Types of central bank digital currencies

While the concept of a central bank digital currency is quite easy to understand, there are layers to central bank money in its digital form. Before we take a deep dive into the possibilities presented by the central banks and their digital money, we will break down the different types of central bank digital currencies.

Wholesale CBDCs

Wholesale central bank digital currencies are targeted at financial institutions, whereby reserve balances are held within a central bank. This integration assists the financial system and institutions in improving payment systems and security payment efficiency.

This is much simpler than rolling out a central bank digital currency to the whole country but provides support for large businesses when they want to transfer money. These digital payments would also act as a digital ledger and aid in the avoidance of money laundering.

Retail CBDCs

A retail central bank digital currency refers to government-backed digital assets used between businesses and customers. This type of central bank digital currency is aimed at traditional currency, acting as a digital version of physical currency. These digital assets would allow retail payment systems, direct P2P CBDC transactions, as well as international settlements among businesses. It would be similar to having a bank account, where you could digitally transfer money through commercial banks, except the currency would be in the form of a digital yuan or euro, rather than the federal reserve of currency held by central banks.

Pros and cons of a central bank digital currency (CBDC)

Central banks are looking for ways to keep their money in the country, as opposed to it being spent on buying cryptocurrencies, thus losing it to a global market. As digital currencies become more popular, each central bank must decide whether they want to fight it or profit from the potential. Regardless of adoption, central banks creating their own digital currencies comes with benefits and disadvantages to users that you need to know.

Pros of central bank digital currency (CBDC)

Cross border payments
Track money laundering activity
Secure international monetary fund
Reduces risk of commercial bank collapse
Cheaper
More secure
Promotes financial inclusion

Cons of central bank digital currency (CDBC)

Central banks have complete control
No anonymity of digital currency transfers
Cybersecurity issues
Price reliant on fiat currency equivalent
Physical money may be eliminated
Ban of distributed ledger technology and cryptocurrency

Central bank digital currency conclusion

Central bank money in an electronic form has been a big debate in the blockchain technology space, with so many countries considering the possibility. The European Central Bank, as well as other central banks, have been considering the possibility of central bank digital currencies as a means of improving the financial system. The Chinese government is in the midst of testing out their e-CNY, which some are calling the digital yuan. They have seen great success so far, but only after completely banning Bitcoin trading.

There is a lot of good that can come from CBDCs, but the benefits are mostly for the federal reserve system and central banks. Bank-account holders and citizens may have their privacy compromised and their investment options limited if the world adopts CBDCs.

It's important to remember that central bank digital currencies are not cryptocurrencies. They do not compete with cryptocurrencies and the benefits of blockchain technology. Their limited use cases can only be applied when reinforced by a financial system authority. Only time will tell if CBDCs will succeed, but right now you can appreciate the advantages brought to you by crypto.

This week's crypto market recap

Tap makes entering the Bitcoin world simple. Buy, sell, hold, and trade Bitcoin easily on our secure platform.

Welcome to this week's Crypto Update, your go-to destination for the latest news in the exciting world of cryptocurrencies. Let's dive right into the highlights of the past week in the dynamic crypto market.

Etherscan's AI Tool for Smart Contracts:

Etherscan has launched Code Reader, an advanced tool that utilizes AI to retrieve and interpret source code from specific Ethereum contract addresses. Code Reader leverages OpenAI's powerful language model to generate comprehensive insights into contract source code files. The tool allows users to gain a deeper understanding of contract code, access comprehensive lists of smart contract functions, and explore contract interactions with decentralized applications. To access and utilize Code Reader, users need a valid OpenAI API Key and sufficient OpenAI usage limits. However, researchers caution about the challenges posed by current AI models, including computing power limitations, data synchronization, network optimization, and privacy concerns.

SEC's increased scrutiny on cryptocurrencies sparks debate:

The U.S. Securities and Exchange Commission's (SEC) increased scrutiny has led to a prominent debate concerning the future of XRP and Ethereum. Max Keiser, a well-known Bitcoin advocate, predicts the downfall of XRP and Ethereum due to regulatory overreach. In contrast, John Deaton, representing XRP holders, opposes this view, arguing for a more balanced regulatory approach. The cryptocurrency community is now anxiously awaiting regulatory clarity, as the SEC's actions remain unpredictable.

It's important to note that the regulatory environment is constantly evolving and can have significant impacts on the cryptocurrency market, including Ethereum. Therefore, it is advisable to stay informed about the latest developments.

A Call for Clarity: Federal reserve governor advocates for clearer crypto regulations:

Michelle Bowman, a Federal Reserve Governor, has urged global regulators to establish clearer regulations for emerging banking activities, particularly banking as a service and digital assets. She emphasized the need for a well-defined regulatory framework to address the supervisory void and uncertainties that financial institutions currently face. Bowman's call aligns with the growing demand for enhanced regulation of digital assets. A robust and comprehensive regulatory framework is crucial for ensuring the stability and integrity of the banking sector, mitigating risks, protecting consumers, and fostering innovation.

Turkish lira hit a record low against the US dollar

The Turkish lira hit a historic low, trading at 25.74 per US dollar, following Turkey's central bank decision to raise interest rates by 650 basis points to 15%. While the hike was expected, it fell short of the anticipated 21%, and analysts believe a larger increase was needed to show the government's resolve to fight inflation. The lira's devaluation has been part of a larger trend, prompting citizens to invest in alternative assets like digital currencies and gold. The central bank, now under new leadership, has adopted a more gradual approach to rate adjustments, seeking to stabilize the economy. However, the uncertainty surrounding Turkey's economic future persists.

Biggest Movers on Tap - Last 7 days

Tap's Crypto Monday (1 - 7 July)

What's driving the crypto market this week? Get fast, clear updates on the top coins, market trends, and regulation news.

Decoding the disconnect: America's cautious approach to crypto

Explore why Bitcoin and the crypto market are worth $2.1 trillion and why skepticism still lingers among Americans in this deep dive.

Millennials and Gen Z: The Catalysts of the Money Revolution?

Understanding the crypto Travel Rule's role

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.

What is a CBDC?

Unveiling the future of money: Explore the game-changing Central Bank Digital Currencies and their potential impact on finance.

This week's crypto market recap

Tap makes entering the Bitcoin world simple. Buy, sell, hold, and trade Bitcoin easily on our secure platform.

What is a CBDC?

Unveiling the future of money: Explore the game-changing Central Bank Digital Currencies and their potential impact on finance.

This week's crypto market recap

Tap makes entering the Bitcoin world simple. Buy, sell, hold, and trade Bitcoin easily on our secure platform.

Crypto

Lizzy

What is Galxe (GAL)?

Read article

Galxe is a Web3 credential infrastructure platform transforming how digital identity and community engagement function within the blockchain ecosystem. By creating a decentralised platform where users can build, manage, and monetise their digital credentials, Galxe bridges the gap between blockchain projects, communities, and individual users.

In a digital landscape where trust and verifiable achievements are increasingly important, Galxe is here to provide a transparent, user-owned solution that allows both projects and participants to engage in meaningful ways. Let’s explore how Galxe is shaping the Web3 space.

TLDR

Credential infrastructure: Galxe provides a decentralised platform for creating, managing, and monetising digital credentials.
Community engagement: Enables blockchain projects to reward and incentivise user participation through verifiable achievements.
Multi-chain support: Operates across multiple blockchain networks, enhancing interoperability and accessibility.

What is Galxe all about?

Galxe was founded in 2021 by Harry (Hay) Jiang and Kevin Wang to improve how digital identities and community contributions are recognised in blockchain networks. Traditional social and professional networks often struggle to reflect the decentralised nature of Web3 communities, and Galxe aims to bridge this gap.

The platform helps blockchain projects build stronger, more engaged communities by providing transparent and verifiable ways to reward user participation. Unlike traditional loyalty programs, Galxe’s credential system gives users full ownership of their achievements, ensuring a fair and user-focused approach to digital identity.

How does the Galxe platform work?

Galxe’s architecture revolves around several key components that work together to create a comprehensive credential ecosystem:

Credential Protocol

At the heart of Galxe is its Credential Protocol, which allows projects to design and issue both on-chain and off-chain credentials. These credentials represent a wide range of achievements, from completing specific tasks to maintaining long-term community participation.

The platform employs a decentralised storage mechanism for these credentials, ensuring they remain secure and resistant to centralised control or manipulation. Additionally, each credential is cryptographically signed, guaranteeing authenticity and preventing tampering.

GAL Token

GAL, the token for Galxe (formerly Project Galaxy), is an Ethereum-based ERC-20 token, meaning it operates on the Ethereum blockchain. The native token, used for both governance and utility, allows holders to vote on platform decisions, stake their tokens, and unlock various features.

Unlike regular utility tokens, GAL is designed to benefit everyone, from projects and developers to community members, by creating a fair and rewarding system for all.

Galxe ID

Galxe ID is a unique digital identity system that aggregates a user’s credentials across multiple blockchain networks. Think of it as a comprehensive, blockchain-based resume that showcases your Web3 journey and achievements. This identity system provides users with a portable and verifiable digital reputation, making it easier for them to leverage their credentials across different ecosystems.

How does Galxe protect user data and credentials?

Galxe prioritises user privacy and data security through several innovative ways:

Decentralised storage: Credentials are stored across distributed networks, preventing single points of failure and ensuring long-term data integrity.
Cryptographic verification: Each credential is cryptographically signed, which prevents tampering and guarantees authenticity.
User control: Users have complete ownership over their credentials, deciding what to share and with whom. This approach eliminates reliance on centralised entities, giving individuals greater control over their digital identity.

The advantages of the Galxe platform

Galxe offers several compelling advantages for both blockchain projects and individual users:

Enhanced community engagement: Projects can design targeted incentive programs that genuinely reward meaningful participation, increasing user retention and interaction.
Portable identity: Users can carry their achievements across different platforms and blockchain networks, making their digital credentials more valuable and widely recognised.
Monetisation opportunities: Developers can create credential-based marketplaces and innovative reward systems, enabling new economic models in the Web3 space.
Low barrier to entry: The platform is designed to be user-friendly, with intuitive tools that make Web3 more accessible to newcomers without requiring extensive technical knowledge.

GAL use cases

The Galxe network supports a variety of use cases across different domains:

Blockchain projects: Create loyalty programs, airdrops, and community engagement initiatives using verifiable credentials.
NFT communities: Verify and reward active community members, improving engagement and long-term participation.
DeFi platforms: Design reputation-based lending or staking mechanisms, reducing risks for both lenders and borrowers.
Gaming: Implement achievement systems with real, transferable value, allowing players to monetise their in-game progress.

How to Buy GAL

Users looking to buy or sell GAL can do so through the Tap app, provided you have a verified account. Simply download the app, complete the account set-up and verification process, and begin trading GAL using your preferred crypto or fiat currency.

Conclusion

Galxe is a platform designed to enhance digital identity and community participation in the blockchain space. By offering a transparent, user-owned credential system, it allows projects and individuals to create verifiable digital experiences and correlate that information across the entire ecosystem.

As blockchain technology develops, credential-based systems like Galxe may play a pivotal role in shaping Web3 interactions. It provides tools for developers, project owners, and users to engage with blockchain ecosystems in a structured way.

‍

Press release

James

XTP is back soon: ProBit integration underway

Read article

Press release

James

XTP Update: Moving Forward & Expanding Horizons!

Read article

Dear Tap Community,

We want to share an important update regarding the XTP token and Bitfinex. As part of a broader internal review, Bitfinex has decided to delist several tokens, including XTP along with other notable projects like The Graph (GRT), Notcoin (NOT), and seven others as part of their platform review. This appears to be a broader shift in Bitfinex's listing strategy rather than something specific to XTP.

What’s Next for XTP

The good news? XTP remains at the heart of everything we do! 💙 Our token continues to power all the awesome features you love - our tier structure, rewards, and the entire Tap ecosystem. This change doesn't affect our exciting roadmap or our vision for the future.

Here’s what we’re doing to keep things moving forward:

ProBit Integration in Progress:
Our dev team is already working on integrating ProBit (where XTP currently trades) into our Trading Engine. This will create a seamless trading experience right within our platform!

New Exchange Adventures:
We're in exciting talks with several exchanges to give XTP even more trading homes! While we need to keep the details under wraps for now (those NDAs, am I right?), know that we're pushing hard to create more options for our community.

Community First:
Remember to withdraw your tokens from Bitfinex before July 15, 2025, if you haven't already. We're here to help if you need guidance on this!

The Road Ahead 🛣️

Even in challenging markets, we see incredible opportunities for growth! Here's what's cooking:

More XTP Utility: We're whipping up new ways for XTP to shine in our ecosystem
Cool New Features: Q2 is going to bring some exciting platform upgrades
Let's Talk More: We'll be sharing updates more frequently so you're always in the loop

We're so grateful for this amazing community! 🙏 Together, we've weathered challenges before, and we'll come out stronger this time too. The crypto landscape is always evolving, and we're evolving with it.

We’re deeply invested in the future of XTP - and we’re just getting started. 👏

The Tap Team

Business

Ash

Co-branded cards: the what, why, how

Read article

70% of consumers prefer brands that make loyalty easier - card-linked programs make this process seamless. In today’s fast-moving market, forward-thinking businesses are leveraging co-branded payment cards to boost customer loyalty, increase lifetime value, and, as a bonus, unlock new revenue streams.

Whether you’re in retail, travel, fintech, or beyond, co-branded cards offer a strategic, low-risk way to deepen customer relationships and expand your brand’s financial ecosystem - without the heavy lift of building payment infrastructure from scratch.

In this guide, we’ll break down what co-branded cards are, why they’re a game-changer for businesses, and how you can implement one to drive growth.

What are co-branded cards?

Co-branded cards are payment cards that merge two brands: your business and the financial institution that issues the card. Unlike traditional credit or debit cards that solely display the bank's branding, co-branded cards prominently showcase your company's identity through logos, colours, and design elements that reinforce brand recognition with every transaction.

These customised financial products can take various forms—debit cards, prepaid cards, or even digital payment solutions—all carrying your brand's distinct identity at the forefront of Tap’s financial infrastructure.

Why co-branded cards drive business growth

The strategic advantages of co-branded cards extend far beyond simple brand visibility:

Enhanced customer loyalty is perhaps the most significant benefit. By offering exclusive rewards, discounts, or perks tied directly to your products or services, co-branded cards incentivise repeat business while creating emotional connections with cardholders.

Revenue diversification comes through interchange fees, where businesses receive a percentage of each transaction made with the card. This creates a passive income stream completely separate from your core offerings.

Valuable customer insights are another bonus that emerges from transaction data (within regulatory compliance), providing unprecedented visibility into spending patterns and preferences. These insights can inform product development, marketing strategies, and shape personalised offers.

How co-branded cards work

Co-branded cards are successful when each entity works in harmony with the others. Below we break down the various elements of the strategic partnership:

Role of the retailer, financial institution, and payment network

Each partner in a co-branded card arrangement brings unique capabilities to the table. The retailer or brand contributes its customer base, loyalty program infrastructure, and distinctive rewards offerings tied to its products or services.

Meanwhile, the financial institution handles the critical banking functions (underwriting, credit approval, payment processing, and regulatory compliance) leveraging its expertise in financial services management.

Completing this ecosystem, payment networks provide the technical infrastructure that enables worldwide acceptance, transaction security, and fraud protection.

This three-way collaboration creates a seamless experience where consumers simply see and interact with their favourite brand, while sophisticated financial operations run invisibly in the background.

Open-loop vs closed loop cards

Co-branded cards typically fall into two major categories that determine their versatility and reach:

Open-loop cards function anywhere the payment network (Visa, Mastercard, etc.) is accepted, giving cardholders maximum flexibility to earn rewards regardless of where they shop. This widespread acceptance makes these cards particularly attractive for everyday spending beyond the brand's own ecosystem.

Closed-loop cards, on the other hand, can only be used at specific retailers or within a limited network of businesses. While more restrictive, these cards often deliver enhanced rewards and benefits when used within their designated ecosystem, creating powerful incentives for loyal customers to concentrate their spending with the brand.

Common types of co-branded cards

The co-branded card landscape spans numerous industries, with each sector leveraging unique value propositions to attract and retain customers:

Travel-based (airlines, hotels, cruise lines)

Travel co-branded cards are a perfect example of the potential of strategic partnerships. Airline cards typically offer accelerated miles earning on ticket purchases, free checked bags, priority boarding, and pathways to elite status.

Hotel cards similarly provide point accumulation for property stays, automatic status tier upgrades, and free nights each year, while cruise line cards offer perks like onboard credits, discounts, and exclusive experiences for cardholders

The common thread connecting these offerings is their ability to transform ordinary spending into exceptional travel experiences, creating emotional connections far stronger than traditional rewards programs.

Retail-based (Amazon, Walmart, department stores)

Retail giants leverage co-branded cards to deepen their relationship with frequent shoppers. These cards typically feature enhanced cashback or points on purchases made within their stores or websites, special financing options for larger purchases, and exclusive cardholder events or early access to sales.

E-commerce leaders like Amazon have revolutionised this space by combining digital-first experiences with substantial rewards on platform purchases, creating a virtuous cycle that drives both card usage and marketplace spending.

Fuel & auto-related cards

Targeting specific spending categories, fuel and automotive co-branded cards deliver maximum value in areas where consumers have consistent, necessary expenses. These offerings typically feature significant rebates on fuel purchases, maintenance services, and automotive accessories, sometimes with tiered rewards that increase with spending volume.

For frequent drivers or commuters, these specialised cards transform unavoidable expenses into meaningful rewards, building brand loyalty through practical everyday savings.

Pros & cons of co-branded cards

As with any financial product, co-branded cards come with distinct advantages and considerations that businesses should evaluate against their strategic objectives:

Pros: rewards, discounts, brand perks, status upgrades

The rewards ecosystem represents perhaps the most compelling advantage for consumers. Co-branded cards typically offer accelerated earning rates on brand-specific purchases, creating a powerful incentive for cardholders.

Beyond points and cashback, exclusive discounts available only to cardholders create a sense of "insider status" that deepens brand affinity. Many programs also include unique perks tailored to the brand experience, for example: priority services, exclusive access, or enhanced customer support, that transform the traditional transaction into a premium relationship.

For aspirational brands, especially in travel and luxury sectors, status upgrades included with card membership provide a taste of premium experiences that often convert customers into long-term brand advocates.

Cons: high APRs, limited redemption, brand lock-in

Despite their advantages, co-branded cards typically carry higher interest rates than no-frills financial products. For customers who occasionally carry balances, these elevated APRs can potentially offset the value of earned rewards.

Redemption limitations also present potential friction points. Many programs restrict how and where rewards can be used, creating occasional frustration when consumers encounter blackout dates or availability constraints, particularly in travel-focused programs.

Perhaps the most significant strategic consideration is brand lock-in risk. Tying rewards too exclusively to your own ecosystem might boost short-term engagement but could create vulnerability if competitive offers emerge or if your brand experiences challenges. The most sustainable programs balance brand-specific value with flexibility that acknowledges diverse consumer needs.

By carefully weighing these factors against your business objectives and customer preferences, you can design a co-branded card program that delivers meaningful value while avoiding common pitfalls that undermine long-term success.

Ensure that you understand the particular offerings of the card program management system you intend on using to see how these cons might affect your decisions.

How to implement a successful co-branded card program

Launching an effective co-branded card initiative requires partnering with the right provider - one offering white-label solutions that can be customised to your specific needs while handling the complex regulatory and operational requirements.

The implementation process typically involves:

Designing card aesthetics that reinforce your brand identity
Creating a compelling rewards structure aligned with your business goals
Developing marketing strategies to drive card adoption
Establishing systems to track program performance

The most successful programs treat co-branded cards not as mere payment tools but as extensions of their customer experience strategy.

With Tap, we work closely with the company launching the product, from an intricate overview of the process to ironing out the finer details to handling all technical and regulatory elements. Contact us here for a clearer look at how your business can leverage the benefits of co-branded cards.

Why now is the time to consider co-branded cards

As digital transformation accelerates across industries, the companies that create seamless, value-added experiences for customers gain significant competitive advantages. Co-branded cards represent a unique opportunity to extend your brand presence into your customers' everyday financial lives.

With flexible white-label solutions now available, businesses of all sizes can implement sophisticated card programs without massive infrastructure investments. The barrier to entry has never been lower, while the potential benefits remain substantial.

Whether your goal is strengthening customer relationships, opening new revenue channels, or gathering deeper customer insights, co-branded cards offer a versatile solution that delivers across multiple business objectives.

By partnering with the right payment solution provider, you can transform ordinary transactions into powerful brand touchpoints - converting each swipe, tap, or digital payment into another opportunity to reinforce your relationship with customers, and potentially earn revenue too.

‍

Business

James

White label card solutions: Transforming business offerings through branded cards

Read article

Want to expand your brand, boost customer loyalty, and unlock new revenue streams - without the cost or complexity of building your own financial infrastructure? White label card solutions do all this (and, you guessed it, more).

These fully customisable payment products, from physical to digital cards, let businesses seamlessly enter the world of embedded finance. In an era where speed, innovation, and customer experience set market leaders apart, offering your own branded payment cards can give you the competitive edge you need.

How do white label card solutions work?

White label card solutions operate through partnerships between businesses and specialised card issuance platforms that handle the technical and regulatory aspects of payment cards.

These solutions typically involve collaboration between the business (program manager), a banking partner (the licensed issuer), and a technology provider that manages the card program infrastructure (in this case, Tap).

The process typically follows these steps:

A business partners with a white label card provider (Tap)
The provider handles backend infrastructure, compliance, and processing
The business applies its branding and determines card features
Cards are issued to customers under the business's brand

Different types of white label cards serve various business needs:

Debit cards link to customer accounts and withdraw funds directly
Credit cards provide revolving credit lines with various repayment options
Prepaid cards allow customers to load funds in advance for future spending

Modern white label solutions leverage robust APIs for seamless integration with existing business systems, enabling customisation of everything from application processes to transaction notifications and rewards programs.

The strategic advantage of branded cards

When businesses implement branded cards into their service portfolio, they're doing more than just adding a payment option – they're creating an extension of their brand that customers interact with daily.

These white-label card solutions allow companies to maintain complete brand consistency while leveraging sophisticated payment technology that would otherwise require significant investment to develop internally.

Financial service providers aren't the only businesses benefiting from this approach. Companies across sectors – from retail and travel to healthcare and professional services – are discovering how branded cards can transform customer relationships and create new revenue streams.

Key benefits of white label card solutions

Branding and customisation

White label cards serve as powerful brand reinforcement tools through both physical and digital card designs that maintain visual identity. Every transaction becomes a brand interaction, increasing visibility and recognition. Businesses can customise card designs, packaging, and digital experiences to create a cohesive brand ecosystem.

Fast market deployment

Traditional card program development can take years and millions in investment. White label solutions compress this timeline dramatically, allowing businesses to launch card programs in weeks rather than years, accelerating time-to-market and competitive advantage.

Increased revenue streams

Beyond enhancing customer experience, branded cards also create tangible financial benefits. Companies implementing these solutions typically see:

Revenue from interchange fees
Increased customer retention and lifetime value
Higher average transaction values
Reduced customer acquisition costs through enhanced service offerings

These financial advantages often make branded card programs self-sustaining or even profitable in their own right, transforming what might be considered a cost center into a revenue generator.

Customer loyalty and engagement

Custom rewards programs aligned with specific business offerings create powerful incentives for continued engagement. By connecting card usage with core business services, companies create virtuous cycles that strengthen both payment card usage and primary service engagement.

Data insights and analytics

White label card programs provide comprehensive data insights on customer spending patterns and preferences. These insights allow businesses to refine offerings, personalise marketing, and identify new opportunities based on actual customer behaviour.

Beyond traditional banking: the evolution of card solutions

The fintech revolution has democratised what was once the exclusive domain of traditional banks. Today's white-label card solutions offer businesses unprecedented flexibility and control. These capabilities allow businesses to not just participate in the financial ecosystem but to actively shape it according to their unique value proposition.

White label card security and compliance

Security and regulatory compliance form the foundation of successful white label card programs. Modern solutions incorporate multiple layers of protection:

Advanced security features: EMV chips, tokenisation, and 3D Secure technology protect transactions from fraudulent activity
Regulatory compliance: Established providers handle complex requirements including PCI DSS, KYC/AML regulations, and financial licensing
Custom controls: Businesses can implement specific spending rules, transaction limits, and merchant category restrictions
Real-time monitoring: Sophisticated fraud detection systems identify unusual patterns and potential threats before they result in losses

Working with experienced white label providers ensures these critical security and compliance components are properly managed while allowing businesses to focus on their core competencies.

Creating seamless customer experiences

Modern consumers expect frictionless experiences across all touchpoints with a brand. Branded cards enable businesses to extend this seamless experience into payment interactions, whether online or in person. By controlling the card experience, companies can ensure consistency at every stage of the customer journey.

This seamless integration becomes particularly valuable when businesses can connect card usage with their core services. For example, a travel company's branded card might offer enhanced rewards for bookings, creating a virtuous cycle that strengthens both card usage and primary service engagement.

Comparison: White label vs. custom-built card solutions

Businesses considering card issuance typically evaluate two approaches:

White label solutions:

Lower upfront investment
Faster implementation (weeks/months vs. years)
Reduced regulatory burden
Ongoing operational support
Limited by provider's capabilities

Custom-built solutions:

Complete control over features
Potentially lower per-transaction costs at scale
Greater differentiation potential
Significant expertise required
Higher regulatory and compliance burden

For most businesses, white label solutions provide the optimal balance between customisation and practicality, allowing them to focus resources on their core competencies while still delivering compelling financial products.

In terms of timelines, Tap’s streamlined process takes your white label card solution from concept to delivery in just 12 weeks.

How to choose the right white label card provider

Selecting the right partner for your white label card program requires careful evaluation of several factors:

Customisation depth: How much control will you have over card appearance, features, and user experience?
Technical integration: Does the provider offer robust APIs and documentation that align with your technical capabilities?
Compliance expertise: What regulatory requirements will the provider handle, and what remains your responsibility?
Scalability: Can the solution grow with your business and accommodate increasing transaction volumes?
Support structure: What level of ongoing assistance is available for both technical and operational issues?

Leading providers differ in their strengths, with some focusing on specific verticals or use cases. The right choice depends on your specific business needs, technical resources, and growth objectives.

Future trends in white label card solutions

The white label card industry continues to evolve rapidly with several emerging trends:

Digital-first cards: Virtual cards becoming primary with physical cards as optional supplements
Crypto integration: Adding crypto capabilities to traditional card products
Buy Now, Pay Later: Incorporating flexible payment options within white label offerings
AI-enhanced features: Sophisticated spending insights and fraud detection through artificial intelligence
Embedded finance expansion: Cards becoming entry points to broader financial service ecosystems

For forward-thinking businesses, the question isn't whether to explore branded card offerings – it's how quickly they can be implemented to capture the substantial benefits they provide.

Getting started without the complexity

The technical complexity that once made card issuance prohibitively difficult has been eliminated by modern fintech platforms. Today's white-label solutions handle regulatory compliance, fraud prevention, and technical integration, allowing businesses to focus on what they do best.

By partnering with the right platform, companies can launch branded card programs quickly, creating lasting competitive advantages that will be increasingly difficult for latecomers to overcome.

To learn more about how white label card solutions can influence your specific business, fill in your details here and a specialised account manager will walk it through with you.

‍

Business

James

Understanding white-label card programs: a complete guide for SMEs

Read article

Looking for a competitive edge? White-label card programs let SMEs launch branded payment cards - without the hassle of becoming a financial institution.

This guide breaks down how white-label cards work and how they can boost revenue, enhance customer loyalty, and streamline operations - all while keeping you in control.

Introduction to card issuing for SMEs

Traditionally, only banks could issue payment cards. But fintech innovation has changed that - now, SMEs can launch their own branded cards with white-label solutions, without the complexity of obtaining a banking license.

This isn’t just about processing payments - it’s about unlocking new revenue, strengthening customer relationships, and ensuring top-tier security and compliance. With the right partner, you get all the benefits of card issuing without the complexity of a banking license.

Understanding card issuing for SMEs

The process of implementing a white-label card program is more straightforward than many businesses realise. By partnering with a trusted card issuing platform like Tap, SMEs can easily launch their own branded cards without having to worry about things like technical infrastructure and regulatory requirements.

These platforms provide robust APIs and intuitive dashboards that allow SMEs to manage their card programs effectively.

In a nutshell: modern card issuing platforms act as a bridge between your business and the complex financial infrastructure required for card issuance. They handle the heavy lifting of payment processing, security protocols, and regulatory compliance while allowing you to maintain control over the customer experience and branding.

Benefits of card issuing for SMEs

White-label card programs offer numerous advantages for growing businesses:

Increased revenue opportunities

By offering branded payment cards, businesses can generate additional revenue through interchange fees, subscription models, and value-added services.

Enhanced brand visibility

Custom-branded cards serve as a constant reminder of your business in customers' wallets, strengthening brand recognition and loyalty.

Improved financial control

Advanced reporting and monitoring tools provide real-time insights into spending patterns and financial flows, enabling better business decisions.

Superior customer experience

White-label cards can be seamlessly integrated with your existing services, providing customers with a unified, branded experience across all touchpoints.

Best practices for managing card issuing

Success with white-label card programs requires careful attention to several key areas:

Financial planning

Consider not just the initial setup costs but ongoing operational expenses. Many platforms offer scalable pricing models that grow with your business.

Integration strategy

Choose a platform that easily integrates with your existing systems, from accounting software to customer relationship management tools.

Brand consistency

Leverage customisation options to ensure your cards reflect your brand identity while maintaining professional design standards.

Security infrastructure

Implement robust security measures from day one, including encryption, tokenisation, and real-time fraud monitoring.

Compliance and regulations

Regulatory compliance is a critical aspect of card issuing that quality white-label solutions should handle seamlessly. Your platform provider should ensure:

Automatic updates to comply with changing regulations
Built-in KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols
Regular security audits and certifications
Clear documentation of compliance procedures

Fraud prevention

Modern white-label card solutions incorporate sophisticated fraud prevention measures:

Real-time transaction monitoring
Machine learning algorithms for fraud detection
Customisable spending controls and limits
Instant card freeze capabilities
Automated alerts for suspicious activities

Seamless card issuing, maximum business growth

White-label card programs give SMEs the power to expand services, boost revenue, and build stronger customer loyalty, without the hassle of managing financial infrastructure. With the right platform partner, launching a branded payment card is faster and easier than ever.

Tap takes care of the complexities so you can focus on growth. Ready to get started? Contact us today and let’s bring your white-label card program to life.

‍

Get the Tap app

NEWS AND UPDATES

💥 XRP Jumps above $2.30 on rumours SEC may drop Ripple appeal

🚀 Bitcoin briefly tops $110K on strong jobs report and ETF inflows

🧨 Rise in crypto-related physical crime

🪙 Launch of the first U.S. Solana ETF with staking: REX-Osprey Solana + Staking ETF (SSK)

🔍 Altcoin watchlist & meme‑coin hype for July

Decoding the disconnect: America's cautious approach to crypto‍

A Look at the Current State of Crypto Trust

General Public Sentiment

Demographics of Crypto Adopters

Key Trust Barriers

The Primary Concerns of Skeptics

Volatility

Security

Regulatory Uncertainty

The Growing Integration Of Digital Assets In Daily Life

The Rise of Central Bank Digital Currencies (CBDCs)

Building Trust Through Technology and Education

Financial Literacy Initiatives

The Future of Digital Asset Adoption

Projections for Crypto Usage in the Next 5-10 Years

Potential Impact on Traditional Banking and Finance

Bridging the trust gap in crypto adoption

Digital Natives Leading the Way

Desire for Financial Empowerment and Inclusion

Influence on Market Dynamics

Embracing Innovation and Technological Advancement

Impact on Traditional Financial Institutions

Challenges and Considerations

In summary

What is the "Travel Rule"?

For transfers of Virtual Assets falling below the de minimis threshold, Virtual Asset Service Providers (VASPs) are required to gather:

Conversely, for transfers surpassing the de minimis threshold, VASPs are obligated to collect more extensive particulars, encompassing:

Implementation of the Travel Rule in the United Kingdom

Implementation of the Travel Rule in the European Union‍

‍What does the travel rules means to me as user? ‍

‍Unlocking Compliance and Seamless Experiences: Tap's Proactive Approach to Upcoming Regulations‍

Types of central bank digital currencies

Wholesale CBDCs

Retail CBDCs

Pros and cons of a central bank digital currency (CBDC)

Pros of central bank digital currency (CBDC)

Cons of central bank digital currency (CDBC)

Central bank digital currency conclusion

Etherscan's AI Tool for Smart Contracts:

SEC's increased scrutiny on cryptocurrencies sparks debate:

A Call for Clarity: Federal reserve governor advocates for clearer crypto regulations:

Turkish lira hit a record low against the US dollar

Biggest Movers on Tap - Last 7 days

LATEST ARTICLE

TLDR

What is Galxe all about?

How does the Galxe platform work?

Credential Protocol

GAL Token

Galxe ID

How does Galxe protect user data and credentials?

The advantages of the Galxe platform

GAL use cases

How to Buy GAL

Conclusion

What’s Next for XTP

The Road Ahead 🛣️

What are co-branded cards?

Why co-branded cards drive business growth

How co-branded cards work

Role of the retailer, financial institution, and payment network

Open-loop vs closed loop cards

Common types of co-branded cards

Travel-based (airlines, hotels, cruise lines)

Retail-based (Amazon, Walmart, department stores)

Fuel & auto-related cards

Pros & cons of co-branded cards

Pros: rewards, discounts, brand perks, status upgrades

Cons: high APRs, limited redemption, brand lock-in

How to implement a successful co-branded card program

Why now is the time to consider co-branded cards

How do white label card solutions work?

The strategic advantage of branded cards

Decoding the disconnect: America's cautious approach to crypto
‍