Coinbase, the leading U.S.-based cryptocurrency exchange, has released its latest State of Crypto report, emphasizing the significant cost benefits associated with adopting cryptocurrency payments over traditional credit card systems. According to the report, Americans could have collectively saved a staggering $74 billion in credit card fees alone during 2022 by embracing crypto-based payment alternatives.
The report highlights that the potential savings per American household could amount to $600 annually through the utilization of cryptocurrency for transactions. These savings extend beyond consumers to include merchants, who collectively bore a burden of $126 billion in credit card processing fees, in stark contrast to the minimal costs associated with processing crypto payments.
Drawing attention to the efficiency of cryptocurrency transactions, the report underscores that crypto payments can be up to 5,000 times more cost-effective compared to traditional methods such as wire transfers, particularly when leveraging proof of stake-based networks like Solana or Polygon.
Americans could have saved $74 billion in credit card transaction fees in 2022 alone by using blockchain—that’s $600 per household.
But this isn’t just about saving money. It’s about giving everyone control and ownership of their money.
Learn more: https://t.co/QjX20kXY2p pic.twitter.com/bfp4LiKJza
— Coinbase 🛡️ (@coinbase) February 7, 2024
Furthermore, crypto payments offer unparalleled speed, processing transactions at rates ranging from 24 to 432,000 times faster than legacy methods, depending on the specific cryptocurrency utilized. The report also examines the benefits of using blockchain for payroll payments, enabling near-instantaneous transactions compared to the prolonged delivery times of traditional systems.
With a growing awareness of the advantages presented by blockchain technology over legacy systems, evidenced by consumer preferences for cheaper, faster, and more accessible payment options, the report signals a paradigm shift towards crypto adoption in mainstream finance.
