Crypto has long been mainstream, and it’s perhaps not quite right to say that big companies are just now “getting into” crypto. They’ve been so for a long time.
It’s true, however, that there’s an especially high level of interest in crypto among big companies these days. Name any big company, and it’s likely that they have at least some vested interest in crypto, whether they admit to it or not.
What’s interesting about crypto, from a business perspective, is that it offers a wide range of benefits and advantages. In this post, we’ll run through just some of the main ones where large businesses are integrating crypto and blockchain technologies into their operations.
Accepting Payments
One of the primary complaints about crypto has been that, while many people seemed to hold it, not so many people were actually using it as a way to buy products. Historically, that was mostly because of highly fluctuating prices and the simple fact that there were virtually no businesses that accepted crypto payments.
That’s all begun to change in recent years, however, to the point where today there are thousands of businesses that accept cryptocurrency payments, including many big names. Starbucks, PayPal, and Microsoft all accept cryptocurrencies, and you can even buy a Tesla with crypto — although only with one coin, Dogecoin.
Boosting Cross-Border Transactions
Cross-border transactions have long been the bane of major corporations, with traditional methods often being slower and more expensive than they would like them to be. To combat this, many corporations are now turning to stablecoins for cross-border transactions.
Cryptocurrency payments offer businesses a wide range of advantages, especially when dealing with international transactions, which have historically been subject to delays of up to 3 – 5 business days. Instead, the payment will arrive in minutes, regardless of the time or day that it was sent. Throw in the fact that crypto payments can be much cheaper than traditional bank transactions, and it’s not hard to see why so many businesses are turning to crypto to address this issue.
Building Their Reserves
Major businesses are increasingly building crypto reserves, and there are good reasons why. Crypto offers a hedge against the effects of inflation and can also be used to diversify holdings. In fact, it’s become so common that a sizable percentage of the Fortune 500 has bought crypto as part of a broader strategic move. Most businesses use an otc crypto exchange, since the quantity in which they’re buying crypto could potentially impact the market. That’s why you might never hear about it until it’s included in their financial reports.
Paying Employees
Some companies have even begun offering their employees the chance to be paid in crypto, though it should be noted that it’s still a niche practice that is so far largely confined to employers within the crypto and tech sectors. We wouldn’t be surprised if this becomes more widespread in the future, though overcoming some regulatory issues — the IRS views crypto as property, not currency — will have to happen first.