Leading US cryptocurrency exchange Coinbase asserts that by utilizing crypto technology rather than credit cards for payment, Americans may have saved at least $74 million in 2022. Coinbase describes how traditional finance system institutions maintain high transaction fees in a system that is “mired in delays” in its most recent State of Crypto report.
Coinbase Statement It’s Cheaper to Use Crypto Than Credit Cards
Leading bitcoin exchange in the United States, Coinbase, highlighted the cost reductions that using a cryptocurrency payments system would provide over regular credit cards. According to Coinbase’s most recent State of Crypto report, adopting a different payment method based on cryptocurrencies would have allowed Americans to avoid paying at least $74 billion in credit card fees.
This implies that every American household would have saved $600 in 2022 if they had solely made payments using cryptocurrencies. Savings, however, don’t stop with final consumers. While the cost of processing payments using cryptocurrency might be little, merchants are also impacted by these fees, having already paid $126 billion in fees to process these credit card transactions.
According to the paper, when taking into consideration the best-case scenario and utilizing a proof of stake-based network such as Solana or Polygon, cryptocurrency payments can be up to 5,000 times less expensive than payments made through conventional methods, such as wire transfers.
According to the survey, cryptocurrency payments are also handled more quickly than standard payments. These are, depending on the cryptocurrency being used for the transaction, at least 24 times and up to 432,000 times faster than traditional techniques. Another use case that was looked at was using cryptocurrency for payroll payments, which would enable almost instantaneous payments as opposed to delivery periods of one to six business days.
The advantages that alternative blockchain systems provide over more traditional ones—which are slower, more expensive, and dependent on thefinancial institutions’ activities. According to the survey, 71% of consumers want transactions to be cheaper, 70% want them to be faster, and 63% want improved access to various payment choices.
Regarding Coinbase’s comparison of conventional and cryptocurrency-based payment rails, what are your thoughts? Tell us in this section of the comments below.