- A new report from Coinbase reveals that 50% of U.S. small businesses favor stablecoins for their stability and lower transaction fees.
- Small businesses, which contribute 44% to the U.S. GDP and employ nearly half of the private sector workforce, are increasingly adopting crypto and blockchain technology.
- 53% of small businesses prioritize hiring candidates with crypto knowledge, highlighting the growing demand for crypto-savvy talent.
- Stablecoins are preferred for their reduced volatility, making them suitable for everyday transactions and cross-border payments.
Small businesses are the backbone of an enterprising economy like the United States of America, and the adoption of crypto adoption is rising among these types of organizations according to a recent report by Coinbase.
According to Coinbase, small businesses, widely regarded as the most trusted institutions in the U.S., are increasingly exploring cryptocurrency and blockchain technology.
Over 99% of all U.S. firms are small businesses, with 88% having fewer than 20 employees. According to the U.S. Small Business Administration (SBA) and the U.S. Census Bureau, small businesses contribute approximately 44% to the United States’ gross domestic product (GDP).
They also employ nearly half (46%) of America’s private sector workforce and have created just under two-thirds (63%) of the new jobs from 1995 to 2021, totaling 17.3 million new jobs. Additionally, small businesses account for 32.6% of known export value, approximately $413.3 billion.
To address challenges in sectors such as finance, health, education, luxury, and sports, companies in the U.S. and worldwide are increasingly turning to crypto and blockchain-based solutions.
Search for talent with crypto knowledge
A unique trend revealed by Coinbase is that 53% of these small businesses are more likely to prioritize candidates with crypto knowledge when filling finance, legal, or IT/tech roles. This signifies that the hunt for crypto-based talent has gone beyond big companies like Google, Meta, Amazon, Apple, JP Morgan, BlackRock, and others.
The report emphasized that the growth of small businesses could be hindered if they lack employees knowledgeable in cryptocurrency. It suggests that a shortage of skilled talent in this area might slow down their development and expansion. The availability of crypto-savvy professionals is essential for these businesses to fully harness the benefits of cryptocurrency and blockchain technology.
Why stablecoin?
Beyond the acquisition of talents, the report also highlighted a rush for stablecoins by these organizations. Stablecoins are cryptocurrencies pegged to assets like the U.S. dollar or gold to maintain a stable price.
They mitigate the volatility seen in popular cryptocurrencies like Bitcoin, making them more suitable for everyday transactions. They are commonly used for cross-border payments and trading other cryptocurrencies.
More than 50% of the businesses surveyed noted that adopting stablecoins could open up new business opportunities. The relative stability designed into stablecoins makes them attractive to businesses looking to avoid the fluctuations typical of other cryptocurrencies.
Another reason for the attraction for stablecoin is its lower transaction fees and faster processing times. Around 68% of these businesses believe that cryptocurrency can help address at least one of these issues.
This is similar to what Pegah Soltani, Head of Payments Products, Ripple said about cross-border payment in the world. She explained that payment standards vary widely across the globe. For instance, using SWIFT or TIPS in Europe and FedNow in the U.S. requires different protocols, limiting the quality and detail of the data.
As a result, these systems operate as closed networks that do not communicate effectively with each other, necessitating a lot of manual intervention and ultimately leading to a poor payment experience.
In other news, Trump says Bitcoin mining may be our last line of defense against a CBDC, and he wants all remaining bitcoin to be mined in the US.
Per Coinbase, the efficiency and cost-effectiveness of crypto transactions present a compelling case for their adoption. Additionally, 76% of small businesses express interest in any potential benefits that crypto might offer, indicating a broad willingness to explore these technologies.
Blockchain in Healthcare and Agriculture
Beyond finance, US small businesses are creating products in the health and agro sector. An example cited in the report is the work of Acoe. It’s a firm that uses blockchain technology to assist public health organizations in collecting, organizing, and analyzing vast amounts of healthcare data.
Similarly, in the agricultural sector, BanQu uses blockchain to give small farmers, who often lack access to banking services, entry into the financial system. This inclusion allows them to join global supply chains, expanding their reach and economic potential.
Blockchain technology is also being used in inventory management by Queen of Raw, an inventory tracking company. They use blockchain to help businesses better monitor and manage their stock, aiming to reduce the $1 trillion worth of unused inventory that sits in warehouses each year, thus optimizing resources and cutting waste.
The report notes that as small businesses continue to explore and adopt cryptocurrency and blockchain technologies, they are not only addressing immediate financial pain points but also paving the way for new opportunities and efficiencies.
