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The Rise of Crypto Currency in Business

Nowadays numbers of companies globally are using bitcoin and other digital currencies for the purpose of investment, operation, and transaction.

Why consider using crypto?

Crypto currencies are growing day by day and number of companies are using bitcoin and other crypto currencies for investment and other kind of activities.

The use of crypto for managing business presents a host of opportunities & challenges. As with any things, there are two unknown dangers & strong incentives. That is why companies want to use crypto in their businesses should have two things:

  1. A clear understanding of why they are beginning that action and
  2. A list of the many questions they need to consider.

This paper strives to provide you and your company with an overview of the types of questions & insights companies need to consider as they demarcate whether and how to use crypto. Thus, if your company plans to take part in crypto currency, it is essential to think ahead, prepare, and engage in a considerate manner.

What can crypto do for your company?

To fervor the thinking for your company about crypto, here are some of the rationales behind why some companies are using crypto currently:

  1. Crypto may endow access to new demographic groups. Users’ represent a more contemporary clientele that values transparency in their transactions. In latest research it is observed that up to 40% of customers who select to pay with crypto currency are new customers and their purchase amounts are two times multiply those of credit card users.
  2. Introducing crypto currency now may help impetus internal awareness in your company about this new technology. It also may help to position the company in this mandatory swelling space for a future that could include central bank digital currencies.
  3. Crypto confer few options that are simply not available with fiat currency. E.g. programmable money can empower real-time & right revenue-sharing while enlarging limpidity to enable back-office reconciliation.
  4. Many companies found that important clients and vendors want to engage through crypto. Consequently, your business may need to be positioned to receive & disburse crypto to make sure that smooth exchanges with key stakeholders.
  5. Crypto provides a new path for enhancing a host of more traditional Treasury activities, such as:
    1. Enabling simple, real-time, & secure money transfers
    1. Helping shore control over the capital of the enterprise
    1. Managing the risks & opportunities of engaging in digital investments
  • Crypto may help as a powerful alternative to cash, which may rue over time due to inflation. Crypto is an investable asset, and some, such as bitcoin, have performed grossly well over the past 5 years. There are, of course, clear volatility risks that need to be deliberately considered.

What are the two primary paths for using crypto?

The main thing to ask when you decide for using crypto currency in your company’s operations is: Can we hold crypto on our balance sheet or simply adopt crypto-enabled payments? To demarcate the right route for your business, you need to make a wary determination of the best fit for your business objectives. Consider the potential profits, drawbacks, risks, system requirements, costs, and more. The following sections will provide some detailed thought around two different paths as your company start on its crypto journey.

Enabling payments: “Hands-off”

Some companies use crypto just to make payments. There is a one way to facilitate payments is to convert this currency in and out of crypto to fiat currency to get and receive payments without touching it. In other words, the company is taking an approach called “hands-off” approach that keeps crypto off the books of accounts.

Enabling crypto currency as a payments, such as bitcoin and any more, without introducing it onto the balance sheet of company may be the simpler and fastest entry point into the use of digital currency. It may need the meager adjustments across the spectrum of corporate functions and may execute immediate goals, such as reaching a new clientele and increase the volume of each sales transaction. Company siphon this limited use of crypto typically rely on 3rd-party vendor.

The 3rd-party vendor acts as an agent for the company, who accepts payments in crypto. This may be the easiest option to pursue. It may be a reason relatively few disruptions to a company’s internal functions, because the “hands-off” approach keeps crypto off the corporate balance sheet.

The 3rd -party vendor will charge a cost for this service which includes handling the bulk of the technical questions and manages a no. of risk & compliance and controls related query on behalf of the company. That doesn’t mean, however, that the company is mandatory absolved from all responsibility for risk, compliance, and internal controls issues. Companies still need to pay careful attention to issues like anti-money laundering and know your customer (AML & KYC) requirements. And, of course, they also need to abide by any restrictions set by the OFAC, the agency that administers and enforces economic and trade sanctions set by the US government.