Coinbase, in its latest “State of Crypto Report,” highlighted that American households could have avoided $74 billion in credit card fees in 2022 through the adoption of blockchain technology, amounting to an average savings of $600 per household. This significant potential for savings draws attention to the economic pressures of the current U.S. financial system according to Coinbase.
The analysis, referencing data from the Securities and Exchange Commission (SEC), the U.S. Census Bureau, and Statista, supported these findings. It pointed to high fees, especially those charged by intermediaries, as a major pain point for Americans, suggesting that cryptocurrencies like Bitcoin and Ethereum could alleviate these financial burdens. It also shed light on the excessive costs for merchants, who incurred over $126 billion in credit card processing fees, revealing a substantial opportunity for cost reduction through blockchain technology.
Emphasizing the growing demand for a financial system that is cheaper, faster, and more accessible, Coinbase’s findings indicated a widespread readiness among the U.S. populace to adopt blockchain solutions. This sentiment was particularly strong among younger generations, who, accustomed to the immediacy of the internet, expect global transactions to be swift and unhindered by traditional banking hours or cross-border delays. The report noted that more than half of Americans aged 18-40 are moving away from traditional financial services, opting for digital currencies and blockchain technology.
The report also highlighted a notable bipartisan consensus on the potential of crypto and blockchain to enhance the financial system’s affordability, speed, and accessibility. Regardless of political affiliation, there’s a remarkable agreement within a narrow margin that blockchain technology could revolutionize financial transactions, signaling a unified vision for the future of finance among Americans.
Further, Coinbase’s advocacy for clearer regulations and improved access to digital assets was highlighted as a part of its broader effort to facilitate the adoption of blockchain. The report elaborated on Coinbase’s pivotal role as a custodian for spot bitcoin exchange-traded funds (ETFs), which received recent approval from the SEC. This development has witnessed a significant uptake, signaling a growing interest in cryptocurrency investments.
The insights from Coinbase comes amidst reports from Leverage Shares indicating potential hurdles for Coinbase’s financial growth due to the rising popularity of Bitcoin ETFs. Analyst Sandeep Rao highlighted that the advent of ETFs has impacted Coinbase’s revenue, which heavily relied on Bitcoin trading. Following the launch of Spot Bitcoin ETFs, there has been a noticeable shift, with professional investors opting for these ETFs to invest in BTC, attracted by the prospect of lower costs.
