Leading cryptocurrency exchange Coinbase highlighted blockchain technology’s potential to save U.S. consumers billions of dollars in its latest State of Crypto Report released Wednesday. According to the report, consumers could have saved at least $74 billion in total credit card transaction fees in 2022 if blockchain technology had been leveraged.
By using blockchain, Americans could save $74 billion in credit card transaction fees in 2022 alone. This equates to $600 per household.
But it’s more than just saving money. It’s about giving everyone control and ownership of their money.
Details: https://t.co/QjX20kXY2p pic.twitter.com/bFP4LiKJza
— Coinbase 🛡️ (@coinbase) February 7, 2024
The report highlights growing dissatisfaction among Americans with the current financial system, particularly regarding fees, with Coinbase showing that at least 3 in 5 Americans want the system to be cheaper and more They noted that they would like to see updates to make it faster and more accessible.
Blockchain could save Americans billions in transaction fees
According to the survey results, dissatisfaction with fees charged by transaction intermediaries tops the list of complaints among consumers and small businesses. In 2022 alone, Americans could have saved about $74 billion in total credit card transaction fees, and merchants paid more than $126 billion in processing fees. This report suggests that blockchain technology has the potential to significantly reduce these costs and provide a more cost-effective alternative.
Coinbase derived its findings using publicly available data from sources including the Securities and Exchange Commission, the U.S. Census Bureau, and data analytics firm Statista, as well as contributions from The Block Research. The report found that merchants will spend more than $126 billion in processing fees for credit card transactions in 2022, making it the second-largest expense after labor costs. By leveraging blockchain technology, these fees can be significantly reduced to negligible amounts.
Coinbase highlighted dissatisfaction with fees as a key concern and indicated that a significant portion of Americans are eager for updates to the financial system that would make trading cheaper, faster, and more accessible.
The report also reveals that more than 70% of Americans want a modern financial system that charges lower fees and operates more quickly. Coinbase believes that blockchain technology will benefit not only consumers but also businesses, highlighting its potential to revolutionize various sectors.
Coinbase supports clearer regulation and lower fees
The report also notes that Coinbase works with the U.S. government as the custodian of a number of spot Bitcoin exchange-traded funds (ETFs) launched by traditional financial institutions such as BlackRock, Franklin Templeton, and BlackRock. He highlighted continued efforts to advocate for clearer regulation and increased accessibility to digital assets. and grayscale investing.
According to data compiled by The Block and Yahoo Finance, Spot Bitcoin ETFs, which were introduced just last month, have accumulated more than $30 billion in cumulative trading volume, demonstrating growing interest in and participation in crypto investment opportunities.
In addition to its exchange services, Coinbase has expanded globally to include Europe, Singapore, and Brazil, but the majority of its revenue still comes from the United States.
Coinbase’s State of Crypto Report, now in its third edition, aims to educate the public about the transformative potential of cryptocurrencies in updating the financial system. Previous reports have revealed that a significant portion of young Americans are moving away from traditional finance, and major companies are actively exploring blockchain initiatives to remain competitive. There is.
This study highlights how traditional financial institutions and their associated payment apps contribute to the expensive and unwieldy nature of the system. Users often end up paying multiple fees and enduring delays as their funds go through intermediaries. This inefficiency has led to widespread calls for system updates that prioritize affordability, speed, and accessibility.