The fact that Tesla temporarily adopted Bitcoin (BTC) as a payment method for its products was possibly one of the incentives that pushed asset prices to record highs last year and put the spotlight on cryptocurrency legitimacy – especially in the field of payment. In addition, cryptocurrencies enthusiasts had praised the fact that Tesla even set up its own node to accept BTC, declaring that it will not exchange its property for fiat, indicating a high level of confidence in the cryptocurrency’s long-term outlook.
But despite stepping back and stopping accepting Bitcoin a few months later due to climate concerns, Tesla was only a cog in the adoption engine of 2021. Starbucks, Whole Foods and AMC Entertainment were just a few of the other jaws that made their foray into cryptocurrency. year. However, what is obvious is that headlines are a favorite for household names. For other companies that want to jump on the bandwagon, it’s a question of how to get started.
Cointelegraph Research’s latest report provides answers. The 35-page magazine discusses the flourishing development of cryptocurrency and the practical ways in which companies can integrate cryptocurrencies into their operations. In addition, the report also looks at the future of cryptocurrency payments, especially regarding regulation and much more.
Why should companies adopt cryptocurrencies?
It is believed that cryptocurrencies are in the over-adoption phase and a 178% increase in global cryptocurrencies is further proof of this. For companies, meeting this growing demographic would mean expanding their potential customer base. Receiving payments in crypto is also much cheaper compared to TradFi methods, which can improve the company’s performance. Merchants could save up to 3.5% in fees – or more – if the payment method is encrypted rather than credit or debit cards.
Download the full report here, along with charts and infographics
Refunds are also another drawback to TradFi payment methods, which cost e-commerce $ 125 billion in 2021. Reimbursements are a type of payment reversal in which a seller returns the amount of money to the customer due to a trade dispute or if the customer returns what is purchased. were. However, refunds can also be a direct fraud as some customers may object to a refund to secure a refund even though they have no problem with the product or its delivery.
The process of adopting cryptocurrencies
Whether a company sets up its own node like Tesla or chooses a payment intermediary to facilitate the transaction, the way to do it is pretty much the same but different under the hood. For example, certain payment methods may allow dealers to accept cryptocurrencies but would also make real-time settlements in fiat. This effectively removes price fluctuations while giving the trader the flexibility to accept digital assets. The downside, of course, is that it puts the company under the often lengthy procedures in TradFi.
The other side of this is to actually accept the cryptocurrency wholeheartedly and there are various reasons for that. Long-term price increases are the most common argument, but companies can also hold cryptocurrencies before rainy days. Merchants can also earn extra income by utilizing the means available within the cryptocurrency space, such as locking the cryptocurrencies in the DeFi protocol to earn returns from mortgaging or lending.
Finally, the decision factor on the channel to receive cryptocurrencies will depend on the merchant. The factor to keep in mind is whether the goal is to keep cryptocurrencies or to take advantage of a growing group of cryptocurrencies – or even both.
Download the full report for more informationcomplete with charts and infographics at the Cointelegraph Research Center.
This article is for informational purposes only and does not represent investment advice or investment analysis or offers to buy or sell financial instruments. Specifically, the document does not replace individual investments or other advice.
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