Recent research by insurance firm Hartford Steam Boiler (HSB) and Zogby Analytics suggests that newly formed companies are far more likely to accept cryptocurrency payments than larger organisations.
The survey, commissioned as part of an investigation into risk management for small and fledgling business, took place in October 2019 and examined over 500 small to medium-sized enterprises (SMEs) across the United States.
SMEs are defined as having an annual revenue under $5 million with less than 100 employees.
36% of US SMEs accept digital asset payments
Researchers found that 36% of the surveyed businesses accepted digital assets and cryptocurrencies as partial or complete payment for their services.
Likewise, up to 59% of the companies surveyed have purchased digital currencies for use in their businesses.
However, HSB vice president Timothy Zeilman was quick to point out that increased use of digital assets can present new risks and dangers for small businesses.
In particular, Zeilman cited cybercrime as the number-one risk for small businesses who don’t fully understand the dangers of crypto, and pointed to the numerous cryptocurrency exchange hacks as an ever-present danger.
“Small business owners should learn all they can about the technology before accepting cryptocurrency, and make sure they have strong data security and insurance to protect against cyber fraud and financial loss.”
Around 47% of the companies who were prepared to accept cryptocurrency payments had only been operating for five years or less, whereas just 21% of pro-crypto companies had been in business longer than 20 years.
Signs of mass adoption?
The survey results are without doubt a sign that new businesses, which are likely more tech-savvy than older institutions, are more likely to adopt digital currency payments.
In April 2019, Coin Rivet reported that millennials are driving the adoption of cryptocurrencies and digital assets, with deVere Group chief executive Nigel Green commenting that cryptocurrencies are beginning to be accepted as the inevitable future of money.
Large companies and financial institutions have already begun adopting cryptocurrency for payments and settlement as well.
Last year, American investment bank JP Morgan announced the launch of its own digital currency, the JP Morgan Coin, for internal use and transfers among its banking partners.
Likewise, Facebook sent regulators into a frenzy with the announcement of its own digital currency, Libra, which despite legal uncertainty has provided a strong argument for digital asset utility.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.