Coinbase’s team of analysts recently released a comprehensive report highlighting the significant disadvantages associated with traditional payment methods, primarily emphasizing exorbitant transaction fees and extensive delays. They discovered that every American household has the potential to save around $600 in the upcoming year by utilizing cryptocurrencies. This not only benefits end-users but also extends to merchants, who collectively paid an eye-watering $126 billion in fees for processing credit card transactions. The nominal commission associated with cryptocurrency payments, on the other hand, was observed to be trivial by the analysts.
The report further elaborates that making payments through cryptocurrencies can be up to an astounding 5,000 times cheaper compared to conventional bank transfers, especially when employing networks featuring a Proof-of-Stake (PoS) consensus algorithm like Solana or Polygon. The researchers also highlighted that cryptocurrency payments are processed anywhere between 24 times to a mind-boggling 432,000 times faster than regular payments, depending on the specific cryptocurrency involved in the transaction.
Apart from their efficiency, crypto assets also prove to be highly advantageous when it comes to salary payments, as individuals can receive their earnings almost instantaneously. Conversely, the conventional methods employed for crediting money can take anywhere from one to six business days. According to the Coinbase report, an overwhelming 71% of respondents expressed their desire to save money on transactions, while 70% sought faster payment processing methods and 63% were willing to explore alternatives that facilitate quick and cost-effective payments.
In a previous report by Coinbase last year, experts projected the increasing popularity of financial asset tokenization in the coming years, primarily driven by the automation of business processes and heightened transparency in audit records.