In recent months and years, we have seen an increasing number of companies across the globe that are using cryptocurrencies. These businesses are using crypto coins and other digital assets for a wide range of investment, operational and even transactional purposes.
As with all new technologies, there are unknown dangers. However, there are also extremely strong incentives for business owners looking to introduce, use and accept crypto coins for their business or organisation.
In this blog post we look at the questions that you should be thinking about before using and accepting digital assets and crypto coins within your business. There are lots of reasons you could use cryptocurrencies in business, but there are things you need to be aware of too. As with any other change in your business, you need to do your own research and ensure you are doing the right thing for you, your customers, suppliers and the business as a whole.
• Why Should You Join The Rise Of Cryptocurrencies Within Businesses?
You may be wondering why you should consider using crypto within your business. To start, more than 2,300 businesses in America accept crypto coins as a form of payment. This was based on research towards the end of 2020, and we know these figures have risen since then. These figures also don’t include cryptocurrency ATMs. We have seen a real growth in companies worldwide, big and small, using cryptocurrencies for operational and transactional purposes, as well as a host of investment purposes.
There are so many opportunities available to businesses that conduct the use of crypto. However, this also comes with some challenges. There are strong incentives for businesses taking on crypto coins within the business. However, there are the unknown dangers that you need to think about too.
If your business is considering venturing in cryptocurrencies, there are two things that you need to have clear. Firstly, you need a clear understanding of why the business is undertaking the action and what it will achieve. Secondly, you need a list of questions that need to be considered before stepping into the world of cryptocurrencies within businesses.
In this blog post we hope to provide you with an overview of the questions you should be thinking about for your business. We also share insights that you should consider. This will then help you decide if taking your business into the world of crypto is the right decision for you.
The most important things to consider when using cryptocurrencies in your business is that you need to think ahead, you need to prepare, and you need to engage carefully. As with all things in business, nothing should be rushed into, and careful consideration is required for all big business decisions.
• What Could Crypto Coins Do For Your Business?
There are lots of different reasons that businesses across the world have decided to start using crypto. Below we list some of the rationales behind some of these business owners decisions. This will help you understand if crypto could work within your business.
– By accepting crypto payments within your business, you could open your organisation to a whole new demographic. Research shows that users of cryptocurrencies will often represent a more cutting-edge clientele for your business. In fact, some research shows that 40% of customers that pay with crypto coins are new customers of companies. Further to this, these crypto users purchase amounts are twice those of customers that pay with credit cards.
– Through the introduction of cryptocurrencies, you may spur internal awareness within your company about this new technology too. In turn, this can help position your company within the emerging space for a future that could include central bank digital currencies, for example.
– By accepting crypto coins within your business this could enable you to gain access to new capital and liquidity pools. These will be through traditional investments that have since been tokenised. It will also enable access to new asset classes and their liquidity pools too.
– You will find that certain options are available to your business through crypto furnishes, that are not available through fiat or traditional currencies. One example of this is that programmable money (cryptocurrencies) can enable real-time and accurate revenue sharing for your business. This will also enhance the transparency to facilitate back-office reconciliation.
– More and more businesses are finding that important clients and vendors want to engage with their organisation by using crypto coins. This has meant that businesses need to be well positioned to receive and disperse crypto coins. In turn, they need to assure smooth transactions with key stakeholders where possible.
– Through the use of cryptocurrencies, you will find that you business has new avenues available for the enhancement of more traditional treasury activities. This includes things like enabling simple, real-time and secure money transfers. It can also help strengthen control over capital of the business. The risks and opportunities of engaging in digital investments can also be well managed.
– Many businesses have found that crypto can serve as an effective alternative or balancing asset to cash. Similarly, it may depreciate over time due to inflation. Cryptocurrencies are an investable asset. It is also one that has performed extremely well over the last five years. That said, there are clear volatility risks and these need to be considered with thought and care before entering your business into the cryptocurrency marketplace.
The Two Primary Paths For The Use Of Crypto Within Your Business
When considering using crypto within your business, there are things that you need to ask yourself. For example, do you hold crypto on your balance sheet? Alternatively, do you simply adopt crypto-enabled payments for your customers?
These are the two primary paths you need to consider when looking at crypto within your business. You need to make sure you choose the right path for you, your business and your customers. It’s important to make a careful determination of the best fit for your business objectives. Take the time to consider the potential benefits as well as the drawbacks. Look at the costs to your business as well as the risks and systems requirements you will need in place.
Need help thinking it through? Contact our team.