Friday, July 1

Big company starts looking to cryptocurrencies to hedge against inflation, but use cases are lacking

Related news

In November, Spanish inflation was above 5.5% per year. The United States is at its 39-year peak, and virtually the entire globe is in the same situation. Uncertainty – caused by the covid, the supply crisis or energy problems – is at a fever pitch, widespread and constantly increasing. There is no doubt that we are facing a favorable scenario for many companies to seek alternatives to traditional financial systems, with cryptocurrencies as a particular lifeline.

So much so that the analysis firm Gartner estimates that 20% of the world’s largest companies will use cryptocurrencies in 2024. It is an ambitious prediction, never before seen around currencies considered speculative. However, the introduction of this technology in many of the traditional payment platforms and, especially, the emergence on the scene of central bank digital currenciesThey are beginning to tear down walls of fear and suspicion in high offices.

“These companies will mainly use digital currencies to manage payments, to have a store of value and to take advantage of high-yield investments available in decentralized finance applications, “adds analyst Avivah Litan.

More pragmatic is his colleague at Gartner, Alexander Bant: “We have seen an increase in interest in digital currency and blockchain applications among CFOs since the beginning of the year. crypto volatility remains a concern, the anticipation of clearer regulatory guidance and the advent of cryptocurrencies from central banks offer CFOs more ways to test digital currency use cases“.

And that is the key: Everything is in a testing phase, from pilots looking for use cases that justify the use of cryptocurrencies. Because it is one thing to be interested in a consumer demand or the inevitable lure of high-yield speculative investments … and quite another to justify the financial strategy of a large company based on those principles.

Waiting for use cases

In fact, Gartner experts themselves recommend that “organizations clarify first the specific use cases of digital currencies before evaluating the technological needs to be incorporated within the company. “They also add that each use case” comes with a series of technological, regulatory, legal and strategic considerations for evaluation by CFOs and business leaders alike. “

To date, they remember from this house of analysis, what exists is a search for alternative formulas for protect your accounts from the currently high inflation. The researchers do not forget that regulatory improvements or in the use of energy by blockchains that support cryptocurrencies also help their adoption. But that final step is missing: finding concrete use cases for it.

There has always been a theoretical appeal to the use of blockchain and digital currencies for CFOs as a means of reducing costs, increasing the speed of transaction processing, reaching new global customers, moving towards continuous accounting and auditing and creating a system free from errors and fraud, “admits Bant, who is optimistic for a near future in which we can “see a path in which the use of digital currencies will potentially be more predictable and stable.”

Leave a Reply

Your email address will not be published.