Crypto payments – a danger to consumer protection?

Abstract

ABSTRACT The original intended function of bitcoin was as a means of payment, but this has turned out to be just one utility of the underlying technology – cryptography. This article goes back to the initial purpose, the means of payment in cryptocurrencies, and examines the problems arising for consumers when paying in crypto. Problems covering execution of payments, liability and the missing issuer of cryptocurrencies, and the volatility of cryptocurrencies and inherent systemic risks will be examined in relation to the MiCA Regulation. This enables a discussion on possible regulatory solutions to protect consumers paying with cryptocurrencies. The paper concludes that the MiCA Regulation does not sufficiently protect consumers in this aspect but proposes an alternative solution to secure appropriate levels of consumer protection.