When corporate treasurers are considering the adoption of blockchain or cryptocurrency solutions, the top factor is the potential for greater operational efficiencies. The Corporate Treasury Shift, a PYMNTS report sponsored by Circle, found that 43% of businesses say that’s a factor affecting their development of blockchain or cryptocurrency solutions.
Other factors cited by more than 30% of businesses are the potential for capturing real-time reference data, the potential for better data security and the potential for greater profits.
Businesses are currently using a variety of cryptocurrencies, including bitcoin, stablecoins, Ether, Ripple, alternative coins and bitcoin cash.
The cryptocurrencies they use varies by their size of business. Among the businesses that operate in two countries, bitcoin cash, alternative coins and stablecoins are the ones most commonly used. Among those operating in three to five countries, bitcoin cash, bitcoin and alternative coins are the top choices.
Among businesses operating in six to 10 countries, alternative coins, stablecoins and bitcoin cash are used by the greatest percentages. Those operating in more than 10 countries tend to use bitcoin cash, alternative coins and stablecoins.
When determining whether blockchain technology or cryptocurrencies are right for their long-term growth, multinational businesses should ponder three points: Does the organization have a robust transaction management system for cross-border transactions? Is the company prepared for full global compliance on know your customer (KYC), know your business (KYB) and anti-money laundering (AML) regulations as it grows? Can the business manage a rapid scaling up of transaction volume without affecting user experience?
Organizations that are unable to manage complex transactions, authenticate users or comply with regulations at scale may see their business growth interrupted over time. Blockchain technologies and cryptocurrencies could provide a viable answer for concerns about scalable business growth and regulatory compliance management.