Digital finance is the future. Here’s a guide to using crypto in business

We’re living in an era of financial innovation with the rise of cryptocurrencies. As traditional money digitally transforms, so will the future of finance in business and our daily lives.

The adoption of digital assets is the next competitive advantage for your growing business, keeping you ahead for this new era of traditional finance.

Here is an introduction to cryptocurrency, the primary use of blockchain technology and how best to position your business to benefit from this emerging market and technology.

What is cryptocurrency and blockchain?

Cryptocurrency is a digital currency used as an incentive for participants to maintain a blockchain. A blockchain combines distributed ledger and encryption technology that stores any information uploaded to the chain in blocks approximately every ten minutes. More often than not, this information regards any peer-to-peer transactions, like sending Bitcoin from one wallet to another.

Bitcoin is the first and most secure blockchain in the world (at present). Controlled by no single financial institution, a blockchain leverages a network of cooperating and competing computers incentivised to hold and update a shared, decentralised and immutable record of every transaction.

Therefore, the blockchain acts as a public trust layer that can track asset value, ownership and enable secure and near-instant transactions between network peers. There are many more technical details, but unless you’re ready to dive deep into the technology rabbit hole, you only need the basics to get started.

Cryptocurrency and blockchain technology democratise access to finance, eliminating many traditional middlemen, such as banks or brokers traditionally involved in financial transactions.

The secured peer-to-peer nature of cryptocurrency transactions, the directness of the transaction without a broker and codified monetary policy are just a few of the core benefits that make cryptocurrency highly attractive to investors — and now businesses.

Why should you business get involved?

1. Access a new demographic and growing wealth class widening your revenue funnel.

2. Leverage the benefits of distributed ledger technology to furnish a high level of security, transparency, and accuracy that centralised, traditional fiat systems cannot.

3. Transition your money flows to a system that enables faster, safer and auditable transactions.

4. Have a competitive edge and position your business as cutting edge and future focused industry participants.

5. Earn more interest from decentralised finance for minimal capital commitment than any bank could offer.

6. Utilise the benefits a decentralised public ledger has in enabling triple entry accounting.

7. Store a new form of business treasury value and mitigate inflation risks.

8. Tap into the under-30s market who are the key driver and early adopters of this technology.

Disruptive technologies thrive because of the exponential value they bring to multiple industries. The above list is merely an indication of the many advantages for business that accept and leverage the benefits of digital finance. 

By adopting this new wave of finance, business owners can trade and invest in cryptocurrencies using a secure custodial interface and purchase or sell goods and services with cryptocurrency as the primary form of tender.

For any company looking to transition into the emerging digital asset economy, it should be an utmost priority to ensure all crypto transactions are safe, legal and consistent with modern accounting standards.

While it may feel challenging to get your head around at first, the benefits will become increasingly profound as more growth enters the industry, and there are significant advantages to starting now.

Six steps to build your foundation of digital assets

1. Research trusted partners in the industry

   It’s a crowded space out there. Follow thought leaders and experts in this space as a source of truth you can rely on for information.

2. Open a digital asset wallet

   Understand the difference between custodial and self-custody wallets.

3. Market your acceptance of digital assets to the emerging digital asset wealth class

   Create new revenue streams by establishing your business as cutting edge and future-focused to new demographics with tokenised liquidity pools and emerging adopters of digital currencies.

4. Take an incremental approach to the adoption of digital assets for your business

   Understand the differences between native cryptocurrencies and how best to utilise them, such as Bitcoin and Ethereum.

5. Upgrade and update

   Update your accounting systems to leverage the benefits of blockchain ledgers.

6. Leverage the benefits of distributed ledger technology

   Businesses that adopt this technology will find increased efficiencies in back-office accounting operations and automation moving forward, as it furnishes a high level of security, transparency, and accuracy that centralised, traditional fiat systems cannot facilitate.

7. Be on the front foot with the regulatory landscape surrounding digital assets

   Constant changes are happening in the digital asset regulatory landscape, and it will be essential to keep abreast as they occur. Make sure to ensure that AUSTRAC regulates your digital asset service provider for AML/CTF compliance.

By adopting this new wave of finance, business owners can trade and invest in cryptocurrencies using a secure custodial interface and purchase or sell goods and services with cryptocurrency as the primary form of tender.