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The impact of cryptocurrency on the business world has been the subject of debate for years. As the world grows more familiar and friendly towards digital currencies, the cryptocurrency market’s influence is growing too. These trends could start to affect businesses as early as this coming fall.
2020 has been a tumultuous year for the general market and a promising one for cryptocurrencies. Since Bitcoin emerged shortly after the 2008 recession, COVID’s stress on the economy has been crypto’s first real test as a safe haven currency. Crypto’s performance may not have been as revolutionary as some predicted, but it has been positive overall.
Crypto’s time in the spotlight could lead to a significant impact on business as a whole. Here’s a closer look at how current cryptocurrency trends could impact business this fall.
As crypto has gained more influence, related technologies have appeared more widely in banking. Blockchain, the underlying technology that enables cryptocurrency, has seen impressive adoption rates among major banks. More banks are using blockchain technology to verify transactions and manage financial data.
With blockchain banking becoming more popular, businesses will encounter the technology more often. Customers may also start to expect some of the same services from major companies. Banks are demonstrating the advantages of blockchain to the public, so the public may start demanding it in other areas.
Banks like J.P. Morgan have even started to pursue cryptocurrency over blockchain technology itself. With major players investing in crypto, it could mean more security and upward mobility for crypto companies. Businesses wanting to explore cryptocurrency will be able to do so in the comfort of the banks they already use.
Changes for International Business
One of the most significant trends in cryptocurrency is its growing government adoption. Most notably, China is releasing a national digital currency and has already started testing it in some cities. As the digital Yuan sees more widespread use, international businesses may have to adapt to using cryptocurrency.
Some American-owned businesses, like McDonald’s and Subway, are participating in the trial of this currency. This national support for crypto is bringing unprecedented legitimacy and attention to cryptocurrency. As a result, digital currencies could become the norm for international trade before long.
Crypto won’t overtake traditional currency by this fall, but businesses may still consider it. Corporations that want to secure their international future will likely have to adopt cryptocurrency support. Now that an economy as massive as China is embracing crypto, it may not be long before other countries follow suit.
New Government Regulations
Another potentially influential trend in the cryptocurrency market is an increase in government regulations. As crypto has grown, authorities have launched new tax regulations for cryptocurrencies and their valuation. Businesses with crypto assets will have to adapt to these new legislative movements.
At the moment, the SEC classifies crypto tokens as securities, but some state legislation is changing that. Companies could take advantage of these changing regulations and adopt crypto without considerable tax disruptions. These regulations could also make crypto investments a safer option for more businesses.
Before, the impact of cryptocurrency on business hadn’t reached its full potential because of uncertainty. Many companies were timid to invest over concerns about unclear regulations. Now that governments are taking a firmer stance on the matter, businesses may feel more comfortable pursuing crypto.
Expanding Forms of Payment
The impact of cryptocurrency on business will grow as more consumers adopt crypto. As the COVID-related recession deteriorated faith in traditional currency, crypto investments have skyrocketed. Now that more people than ever are using cryptocurrency, consumers will start to expect more businesses to accept them.
This trend will continue to grow, with major players like Facebook moving into the crypto space. Facebook announced their cryptocurrency project in 2019, and they could launch it later this year. This movement, combined with banks’ embrace of crypto, could lead to a considerable uptick in crypto adoption.
To stay competitive in late 2020 and beyond, businesses may have to accept crypto payments. If crypto eventually surpasses fiat currencies, it will take years to happen, but companies may still need to support it as an option. With a growing number of crypto users, more businesses will have to consider enabling these transactions.
Crypto’s Influence on Business Is Growing
If 2020 has been anything, it’s been unpredictable. Whether or not these trends continue or have a significant impact on business remains uncertain. If things continue on their current path, however, fall 2020 could be a turning point for cryptocurrency and its place in business.
Cryptocurrency will eventually hold significant sway over the business world. That shift could start as soon as this year, so companies may want to consider preparing for it. As crypto grows more legitimate among consumers and governments, businesses will have to adapt.