Cryptocurrency use in companies often arises from the initiative of executives and owners who believe in new technologies and in a future fair financial system. Tesla, MicroStrategy, Square, The Motley Fool, Hong Kong tech giant Meitu, and other companies have already invested in Bitcoin. Companies are also using cryptocurrencies for their businesses and accepting cryptocurrencies as payment for goods and services.
The purchases and use of cryptocurrencies by large companies usually appear in news stories describing the growth of the crypto market. These stories are great vehicles for self-promotion. This kind of news typically generates lots of comments and discussions on social media, which is good for any company. But in addition to attracting attention, the use of cryptocurrency expands the financial capacity of crypto adopters.
Cryptocurrencies are also becoming common assets in the portfolio of modern investors, along with traditional investment instruments. At a time when traditional markets are under attack and inflation is breaking new records, cryptocurrencies can be a good business tool for risk diversification.
Companies can use cryptocurrencies to pay for their goods and services. Luxury real estate developer Damac Properties in Dubai recently began using Bitcoin and Ethereum
as a means of payment. Company representatives have said this move helps drive change in the real estate market, spurs the digitization of the economy, and adds convenience for clients.
Last year, Tesla announced it would sell electric cars in exchange for cryptocurrency but reversed its decision after a while. After a period of mixed messaging, the company took a more decisive stance, stating in a quarterly report filed for the SEC
its belief in the long-term potential of digital assets "both as an investment and as a liquid alternative to cash."
Cryptocurrencies are becoming common portfolio assets
Companies are using crypto to integrate new technologies into business processes
The crypto industry is stabilizing and institutionalizing
Large companies are also using their own or specialized cryptocurrencies to integrate new technologies into their production and business processes. This is not just about digital assets, but also blockchain technology. They cannot change or delete information in the blockchain once it’s been entered there. Trusted document flow is a key feature of the architecture, in addition to how it eliminates fraud and potential abuse of power by individuals and offers better traceability and security of work within an organization.
Cryptocurrencies are being accepted as a means of payment for goods and services and used in internal processes by major financial sector players such as PayPal, Visa, Mastercard, and JP Morgan. Banks are beginning to offer cryptocurrency-related services to their customers. Since financial-sector companies that use cryptocurrencies are closely connected with the authorities in their countries, they help boost the legitimacy of cryptocurrencies. In Europe, a law on cryptocurrencies has recently been put up for discussion
. In the U.S., regulators have introduced
several bills on cryptocurrencies. A crypto strategy has been nearly finalized
in the United Arab Emirates. In developing countries, cryptocurrencies are playing an even more significant role, and regulators are also creating
the legal foundations for them.
Large companies continue to show interest and are investing in digital assets, and with the creation of a legal framework, the crypto industry is stabilizing and institutionalizing. Official international payments and settlements between companies in cryptocurrency will become possible. In many countries, this establishment is imminent. However, much also depends on the social diffusion of crypto and how popular it is among everyday people and owners of well-known companies.
MediaArticlesShaping the digital economy: why companies need cryptocurrencies