The mainstream acceptance of cryptocurrency is continuing to innovate the ways people diversify savings, save on transaction fees, and protect against inflation. Big-name brands like Starbucks, PayPal, Microsoft, AMC Theatres, and Whole Foods are just some of the growing numbers of organizations now accepting payment in cryptocurrencies.
Like other countries, businesses based in Singapore are starting to take advantage of the Singapore crypto exchange through digital exchange markets. The cryptocurrency market’s growth is projected from $1.6 billion in 2021 to $2.2 billion by 2026, based on the report published by MarketsandMarkets.
Cryptocurrency also allows companies to build new and innovative offerings around digital assets. Examples include mobile apps that allow people to begin utilizing cryptocurrency quickly and easily to platforms that automate crypto purchasing for investors.
Cryptocurrency is fueling new business opportunities
The cryptocurrency market can drive customer engagement and wins. Still, the right set of tools and talent are necessary to overcome barriers comprised of technology headaches, consumer fears, and compliance concerns.
Crypto market demand
Consumer demand is not just the driver of enterprise cryptocurrency adoptions. Digital assets like Ethereum, bitcoin,Solana, and avalanche are blockchain-based. Decentralizationallows data to be stored in an individual’s crypto wallet versus a centralized depository where data breaches can be prevalent.
A blockchain general ledger is required to verify all transactions, making cryptocurrency more secure than credit and debit card payments but faster by removing third-party verification.
Cryptocurrencies also lower transaction fees and enable businesses to access new demographics. For example, The Pavilions Hotels & Resorts group embraced digital currency payments. Customers were allowed to book rooms in many of the hotel chain’s global destinations using bitcoin, Ethereum, or other digital currencies.
The move has helped The Pavilions Hotel Group nurture lucrative crossover markets like luxury travelers who also happen to trade in cryptocurrency.
As companies ponder potential business models and use cases for digital exchange and cryptocurrency, understand that it is still marked by volatility. Security and regulation compliance concerns hamper adoption in heavily regulated sectors like finance. Banks are being cautious on how they can get into crypto compliantly.
There is also a higher need for IT infrastructure to evolve for cryptocurrency integration. The Pavilions Hotel, for instance, relies on a legacy booking engine for guest reservations. The hotel’s crypto-paying guests must make direct bookings via the company’s reservations center. After a call, an agent delivers an email with a link that guests scan to complete the cryptocurrency payment. This additional step can slow down the process.
As cryptocurrencies gain mainstream acceptance, businesses will find ways to adapt their IT infrastructure to allow easy integration with multiple features and solutions.
For businesses looking to dip their hands into the digital exchange, banks have already started offering trading services for digital assets, including security tokens and the Singapore crypto exchange. For instance, banks like DBS are backed by a leading Asian financial services group, DBS Bank, which boasts decades of extensive experience in capital markets and providing secure custodial services.
As you consider cryptocurrency adoption in your business, continue following the news and development across industries to see how you can take full advantage of its features.