With about 15% of Americans that have invested in the plethora of cryptocurrencies out there, it is becoming an idea that many people are warming up to. Not only people but companies and businesses are also looking into using the different currencies and their blockchains and integrating them into their businesses as methods of payment. There is a lot of research and debate going on to make cryptos a viable method on cross-border payments as evidence supports that they are fast, efficient, and cost-effective. Considering these factors, it would not be an idea in vain if businesses did adopt cryptocurrencies soon enough.
Not only as methods of payment, but cryptos would also affect the future of businesses in other ways. A large portion of investors have looked into trading cryptos in the last two years taking away a significant amount of funding from investing in stocks of a particular company. The ROI and market cap of cryptos have been so high that Google searches are full of finding the best exchange to trade cryptocurrency in different countries across the world. Websites and platforms like CoinSwitch have gained a lot of traction and users in the last year making it one of the most popular platforms with a trading volume of over 10 Million.
Examples that crypto has already made its way into the business
Whether an individual is pro cryptocurrency or not, there is a strong chance that it would be making a huge impact on them and the future of business transactions.
- MicroStrategy – A company launched in 1989 by Michael Saylor was one of the firsts to bring to notice the rise of cryptos affecting mainstream businesses as the CEO called cryptos ‘superior to cash’ and created a snowball effect.
- Tesla – Anyone on Twitter knows the rage Elon Musk created after tweeting about Dogecoin and has seen the massive surges as this self-proclaimed ‘TechnoKing’ influenced several businesses with the DOGE. Musk also bought 1.5Million dollars worth of bitcoins and created a sort of institutional acceptance towards cryptos. Recently, Tesla also announced their willingness to accept payments using Bitcoins.
- PayPal – One of the pioneers of international payments and digital transactions, PayPal, has also jumped on board for cryptocurrency trades. They have rolled out ideas for people to buy, sell, and make transactions using Bitcoins, Ethereum, Litecoin, etc. The way this would work for people in India would be to, for example, convert the Ethereum price in INR and make the trades accordingly.
- Visa and Mastercard – Again, two of the biggest platforms in worldwide payments have endorsed the use of Bitcoin publicly. Visa does allow transactions with stablecoins on the Ethereum blockchain. Soon after, MasterCard followed suit and stated that crypto transactions would be made possible in 2021.
How can crypto help companies ?
There are several ways in which transitioning the methods of financial payments to cryptos would be beneficial for bigger and smaller-scale companies. It opens the doors for broader mainstream transactions and practical use of cryptos in the upcoming years. The incentives are strong and are worth considering.
- This currency provides untethered access to whole new demographic groups. Several pieces of research have proven that users show a preference and greater value of transparency in their financial transactions. Therefore, attracting new clients would not be a tough task.
- Using cryptocurrencies could give access to newer capital and liquidity pools along with a set of new asset classes.
- Paying employees could be easier and more convenient especially in different parts of the globe. Converting thousands of dollars into international currencies or vice versa can result in the loss of a lot of money at the end of every year. Having a standard international currency that is decentralized and public could save big bucks.
- Using the blockchain of a particular currency would also mean lower operating expenses as they operate on a programmed set of rules called – smart contracts. A company can alter these rules and install them into the blockchain and as the criterion is met, the smart contract is able to trigger the next predetermined action by itself.
- A middleman would also find no use in this new era of business dealing via cryptos. Brokers, financial institutions, third-party intermediaries, etc would not be required. Since all the calculations and transactions would be carried out on a mathematical basis, it would be easier to reduce the overall overhead costs, coordination, and hassles.
- Introduction to new possibilities would be in sight upon welcoming blockchains into businesses. Being the backbone, blockchain technology increases the efficiency of foreign exchange crypto payments.
Businesses are now keeping up-to-date and adapting to the changing times. If the era of using cryptocurrencies arises, the advantages to the businesses would be manifold and since they are preparing for this following the bigger names in the market, the transition would not be as tough. The time for a change is here and the time for change is now!