A new survey commissioned by American insurer Hartford Steam Boiler (HSB) has shown that new businesses are pro-crypto. The study revealed that 36%o of U.S SMEs accept cryptocurrency payments. The study further revealed that 59% of these companies bought cryptocurrencies for their own use. While the numbers remain small, they show that crypto adoption continues to grow and new businesses are ready to drive crypto adoption.
The study, conducted by Zogby Analytics showed that 47% of businesses accepting cryptocurrencies were established in the last five years. This correlates with crypto popularity in the last five years. Although the study does not reveal it, it is hard not to imagine that the 2017 boom is the main reason for most businesses accepting cryptocurrencies.
Older companies, those older than 20 years, were the least crypto-friendly. Of those surveyed, only 21% accept cryptocurrencies.
Benefits And Risks Of SMEs Accepting Crypto Payments
As argued by HSB vice president Timothy Zeilman there are benefits and risks of accepting cryptocurrencies. The most primary and greatest benefits are they offer cheaper and faster transactions. For starting businesses, this is fundamental to ensure they have an edge over more established businesses. On the risky side. Zeilmain notes:
Cybercriminals follow the money and fraud can be a serious problem. A number of currency exchanges have been hacked or embezzled and millions of dollars were lost. Smaller businesses, especially those starting out, can’t afford to be cheated.
It is also important to note that there are some regulatory issues around cryptocurrencies in many countries. This means that small businesses that accept cryptocurrencies are at risk of losing value if any of the cryptocurrencies they hold comes under fire. Small businesses cannot afford this. Fraud has also been a big issue in the crypto community and small businesses are at risk of this when they accept crypto payments.
SMEs Adoption Could Lead To Better Regulatory Framework
Despite these problems, it is clear that small and medium enterprises have seen cryptocurrencies to be worth the risk. What is important is that they understand the new form of money and the technology that drives them. This will allow them to ensure they are protected from theft and fraud.
In the years to come, the crypto community expects that crypto popularity will continue growing and more businesses will accept them as a form of payment. This in itself could ultimately motivate governments to establish better regulation around cryptocurrencies.