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How Can UK Businesses Utilise Crypto?
The introduction of cryptocurrencies in UK businesses is a seemingly daunting prospect. The volatile nature of the market has many CEOs holding off on starting the change in how they run their finances. While risk is present, the benefits that come with cryptocurrency can be very good for UK businesses.
The vast opportunities brought by the introduction of crypto can benefit both the business and, more importantly, the customer, helping to generate more custom overall. Here is how UK businesses are gaining the advantages of crypto in their company.
Why Consider Using Crypto?
Over 2,300 businesses in the US are accepting Bitcoin, according to research completed in late 2020. That number has risen vastly since then. This number does not include the use of Bitcoin ATMs across the country. Across the globe, we are seeing an increased number of industries utilising Bitcoin and other digital assets in their investment, operational, and transactional services.
A host of opportunities and challenges come with using crypto for conducting business. It is not uncommon for frontiers to include strong incentives as well as unknown dangers. The next time a company ventures into crypto use, they need a clear understanding of why they’re doing it and a list of the many questions they need to answer. TradingView is a great way for these businesses to analyse their assets and see how well performances are doing, past and present.
It provides an overview of what enterprises should consider when considering whether and how to use crypto as part of their decision-making. You should think ahead, prepare, and engage thoughtfully if your company plans to get involved in crypto.
Two Reasons For Using Crypto
Before implementing crypto into your company’s operations, ask yourself: Do we have crypto on our balance sheet, or do we just accept crypto-enabled payments? Making sure your business objectives are met is the first step to determining the right path. You will need to weigh the potential advantages, disadvantages, costs, risks, and system requirements. In the following sections, we will explore two different paths your company can take as it embarks on its crypto journey.
Companies in some industries have been utilising crypto’s power to facilitate payments. One way to utilise this payment is by converting in and out of crypto to fiat currencies to make or receive payments without actually handling them. This is known as a “hands-off” approach and helps to keep crypto away from formal bookkeeping.
Allowing crypto payments like bitcoin without bringing them into the company’s balance sheet is the fastest and easiest way to utilise digital assets within a business. A few adjustments could be needed across the board of corporate functionality, but it could serve well for immediate goals such as growing sales volume for each transaction and reaching new clients. Any businesses seeking to utilise this limited crypto use will need a third-party vendor’s help.
Suppose a business is looking to go further than using bitcoin as a simple transaction-based service and adopting crypto towards operations and treasury functions. In that case, a more “hands-on” approach is needed. If used in the right way, there could be a significant increase in benefits brought to a business, but this also brings many more technical matters to contend with.
To ensure it is ready, the corporate treasury may think about varying issues that could occur at the start, such as:
What is the company’s goal for adopting crypto?
What steps and learning methods have been instigated to ensure the treasury can adequately monitor and manage any crypto payments?
Does the treasury think the actual crypto should be outsourced to a third party or owned by the company itself?
What steps have been taken for the potential outcome of investing in crypto as a new class of asset?
What changes does the treasury predict to happen in the eventuality of central banks working with cryptocurrencies?
What Can Crypto Do For Your Company?
The use of crypto has the potential to deliver access to new demographic groups. Users often want a more transparent value seen in their transactions which is exactly how digital currencies work. A recent study has shown that companies introducing crypto payments have seen 40% of their new customers utilise the service. It was also found that the purchase amounts were twice that of credit card users.
A lot more businesses are finding that important vendors and clients are looking to surround their dealings with the crypto market. Through this desire, businesses are finding it essential to be positioned to receive and send transactions in the smoothest possible way.
Introducing crypto payments within your company will help entrepreneurs develop a greater understanding of the digital asset market. A greater understanding will be great for businesses, putting them one step ahead for the future when central banks will be incorporating these types of assets.
Through tokenized investments and new asset classes, crypto could enable investors to access new capital and liquidity pools. Crypto offers a host of new directions for enhancing traditional treasury activities. These are as follows:
Creating real-time, simple, and secure money transfers.
Managing opportunities and risk through the digital enterprise.
Helping strengthen control over the capital of the enterprise
Crypto can act as an alternative for balancing assets to cash. These may depreciate due to inflation over time, but as seen with bitcoin, these investments have performed exceptionally well. The volatile nature of cryptocurrency is always something to be considered, but with a cautious and knowledgeable approach, it can be used in business extremely effectively.