Spiral, a development team at Block, reports that Bitcoin payments face low adoption due to weak demand rather than technological limitations. The team notes that the Lightning Network is already operational for fast and cheap transfers, and over one million US merchants can accept Bitcoin via Square.
Data from the Federal Reserve shows that while 9% of American adults held crypto as an investment in 2025, only 2% used it for payments. This usage rate has remained between 1% and 2% annually since 2021, hindered by price volatility and tax regulations that treat every purchase as a taxable sale.
Major payment firms like Stripe, Shopify, and Coinbase are increasingly prioritizing stablecoins. The report highlights that 99% of payments on Coinbase’s x402 protocol for AI agents settle in USDC. Meanwhile, Circle is promoting digital dollars for AI-driven transactions.
Jack Dorsey, who set a goal in January 2025 for Bitcoin to become a daily currency, is now seeking proposals to boost adoption within five years. Potential solutions include spending incentives, per-use payment models, and enabling dollar or Bitcoin payments over the Lightning Network.
