Cryptocurrencies have become one of the most popular financial markets in the world. Despite not even being 2 decades old, they have managed to convince people that have never even invested a single dollar to start buying cryptocurrencies. The effects of cryptocurrencies are so apparent that even countries have started to incorporate cryptocurrencies into their financial systems. And even though businesses were the first to jump on the crypto bandwagon, some still seemed reluctant.
However, predictions from industry experts show that it is very possible for 40% of businesses in the US will start to accept cryptocurrencies as a payment method. And regardless of what people might think, there is plenty of evidence to show that experts are not far off with their predictions.
Customers and companies have evolved considerably in the last few years, as they are moving to more convenient methods of payment. And some of them have even gone so far as to completely shift towards cryptocurrency and abandon fiat currency. On the other hand, customers using cryptocurrencies are significantly more inclined to use it since it offers so many more benefits.
Furthermore, among companies, cryptocurrencies are slowly evolving more into a spendable currency than a regular asset. This is especially important considering the fact that most companies are now moving towards integrating a more crypto-friendly environment. However, despite the optimism that experts of the field feel, they are still grounded in reality about how long it will take for virtual currencies to finally become mainstream. They believe that a future where everyone is using virtual currencies is years away from now.
A report from august of 2021 showed that multinational businesses are significantly more likely to spend the crypto that they are holding than to hold it as an asset. This makes sense, considering the fact that cryptocurrencies can become a very profitable investment down the line. The report also stated that the firms throughout the US and the Middle East were either currently using or had plans to use cryptocurrencies for payments. More specifically, they plan on using digital assets for their cross-border payments, as it will allow them to overcome taxes and bypass other expenses.
More traditional financial institutions are currently in a battle against nimbler and smaller fintech companies for the privilege of assisting B2B transactions. While these financial institutions offer a lot of benefits, they are also a lot harder to depend on when looking at the incredible benefits that most other fintech companies offer.
Therefore, the industry is seeing a major shift in terms of its companies moving towards fintech firms in masses as they offer significantly more benefits than average banks and other institutions.