The rapid rise of Web3 has prompted many traditional industries to consider digital transformation. Blockchain technology is not only reshaping finance but also finding applications in smart manufacturing, retail, healthcare, food safety, identity verification, and supply chain management. Most enterprises adopt blockchain solutions to address specific pain points, such as trust issues, efficiency, and cost reduction. Only a few innovative business models fully integrate blockchain technology to create new products or services, such as the emerging X2E (X-to-Earn) models discussed in previous articles.
As digital transformation becomes an undeniable trend, businesses inevitably face the question: Should they hold, develop, or invest in digital assets? Examples include accepting Bitcoin payments or issuing NFTs. Broadly speaking, any asset managed via blockchain—including customer data, loan records, transaction documents, and debt agreements—qualifies as a digital asset. This article, however, focuses specifically on crypto assets like Bitcoin, stablecoins, and NFTs, as well as foundational Web3 infrastructure projects such as Polkadot (DOT) for cross-chain ecosystems, Filecoin (FIL) for decentralized storage, Theta Network (THETA) for media and entertainment blockchains, and Basic Attention Token (BAT) for decentralized advertising.
Many industries recognize the potential of digital asset-based business models but express concerns about cryptocurrency-related challenges. Regulatory frameworks worldwide struggle to keep pace with technological innovation, leaving businesses without clear guidelines. In some regions, governments have adopted a light-touch, negative-list regulatory approach, which—from an optimistic perspective—creates opportunities for enterprises to experiment. If this is indeed an opportunity, how can companies address compliance and risk management issues?
Key Considerations Before Entering the Crypto Market
In March 2021, Citigroup published a report titled "BITCOIN: At the Tipping Point," suggesting that Bitcoin’s neutrality and global influence could make it a preferred currency for international trade. This report elevated cryptocurrencies from a niche financial topic to a potential future payment method. Major companies like MicroStrategy and Tesla have allocated portions of their treasury to Bitcoin, while traditional financial giants like Visa and Mastercard are aggressively expanding into the crypto market. Although regulatory constraints may prevent cryptocurrencies from directly replacing fiat currencies in the short term, they are poised to reshape payment habits. Enterprises must prepare by incorporating crypto payments into their long-term strategies to avoid being left behind.
From a risk management perspective, key concerns include crypto custody solutions and high price volatility. Several providers now offer enterprise-grade crypto vault solutions, such as Cybavo, which provides a security-first private key management system, rapid deployment options, and cryptocurrency theft insurance. For currency selection, regulated, dollar-collateralized stablecoins like USDC (pegged 1:1 to the US dollar) are recommended to avoid risks associated with under-collateralized or algorithmic stablecoins, exemplified by the May 2022 collapse of TerraUSD (UST).
Cross-border payment giant MoneyGram is expanding digital currency adoption by planning a stablecoin remittance platform built on Stellar. In mid-2022, Circle, the issuer of USDC, announced the upcoming launch of a euro-pegged stablecoin, "Euro Coin (EUROC)," designed for payments, trading, and lending to enhance euro liquidity access. These developments indicate strong market demand for crypto transaction and exchange services despite recent price volatility.
Can Companies Accept Crypto Payments Like Bitcoin or Tether?
With the growth of crypto-based third-party payment systems, many merchants now accept cryptocurrencies as a form of payment, often through intermediaries. Partnerships like Starbucks and Mastercard with Bakkt, Amazon with Purse, and PayPal’s support for Bitcoin, Bitcoin Cash, Ethereum, and Litecoin illustrate this trend. AMC Theatres began accepting crypto payments for tickets in late 2021, and Gucci started allowing crypto payments at select US stores in May 2022. These moves aim to modernize brand image, enhance customer experience, and attract younger demographics.
However, many companies remain cautious due to cryptocurrency price volatility, slow transaction speeds, and cybersecurity concerns. In the financial sector, regulatory bodies in some countries classify Bitcoin as a highly speculative digital "virtual commodity" rather than legal tender. For instance, a 2014 directive from one East Asian financial regulator prohibited banks from accepting or exchanging Bitcoin or offering related services via ATMs.
Is There a Future for Crypto Amid Sharp Price Declines?
Recent global economic uncertainty, driven by quantitative tightening, interest rate hikes, and inflation, has affected all asset classes, including cryptocurrencies. This environment highlights the potential for significant losses but also underscores the importance of understanding and managing risk.
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Frequently Asked Questions
What are the main benefits of enterprises holding crypto assets?
Holding crypto assets can offer diversification, potential appreciation, and access to new payment ecosystems. It also positions companies as innovators, appealing to tech-savvy customers and partners.
How can businesses mitigate risks associated with crypto volatility?
Using regulated stablecoins like USDC for transactions, employing secure custody solutions, and purchasing crypto theft insurance are effective strategies. Diversifying crypto holdings and adopting gradual entry approaches also help.
Are there regulatory barriers to accepting crypto payments?
Yes, regulations vary by country. Some jurisdictions prohibit financial institutions from handling cryptocurrencies, while others allow it with specific licenses. Businesses should consult legal experts to navigate local laws.
What industries are leading in crypto adoption?
Technology, finance, and retail sectors are at the forefront, followed by gaming, entertainment, and supply chain management. These industries leverage crypto for payments, loyalty programs, and transparent record-keeping.
Can SMEs practically accept crypto payments?
Yes, through third-party payment processors that convert crypto to fiat instantly, reducing exposure to volatility. This requires minimal technical integration and offers access to global markets.
What is the difference between holding crypto directly and using intermediaries?
Direct holding offers full control but requires robust security measures. Intermediaries simplify compliance and security but involve fees and counterparty risks. The choice depends on risk tolerance and technical capability.