Adopting Crypto for Business- Is it high time?
As cryptocurrencies, decentralized finance, and consequently, blockchain technology is gaining more attention worldwide, more companies are becoming comfortable with adopting them for a variety of investment, operational, and transactional purposes. In fact, according to an estimate from late 2020, over 2,300 businesses in the United States accept Bitcoin, and this number does not include Bitcoin ATMs, or other cryptocurrencies. But should we really consider adopting crypto for business?
Using crypto for conducting business presents several opportunities, and challenges. Companies venturing into this idea should have a clear understanding of why they are opting to use them.
Here are some reasons that may sway you in favor of the digital assets:
Crypto could allow you to cater to a new demographic that values transparency in their transactions. A study found that up to 40% of customers who pay with cryptocurrency are newer customers of the company, with twice the purchase amounts of credit card users.
Introducing crypto could prepare your company for a future that probably includes central bank digital currencies (CBDCs). Important clients and vendors are also beginning to prefer dealing in digital assets. Not to mention it could give your company access to new capital and liquidity pools through tokenized traditional investments.
Crypto also gives you unique benefits that you wouldn’t get with fiat currency. For example, programmable money can enable real-time, accurate revenue-sharing while increasing transparency. It provides a better asset-exchanging experience, like simplifying money transfers, strengthening control over the company’s capital, and so on.
Digital currencies can serve as an alternative to cash and safeguard against depreciation due to inflation. However, even though it is an investable asset, there are risks regarding their volatility that you should consider.
Readers can also read, Four blockchain businesses to keep an eye on in 2022 (blockchainmagazine.net).