Coinbase Estimates Blockchain Could Have Saved Americans $74B in Credit Card Fees

8 views 10:23 am 0 Comments February 8, 2024

The exchange thinks that the current financial system in the US is expensive for an average American.

Leading American cryptocurrency exchange Coinbase has unveiled a groundbreaking report showcasing the potential savings Americans could have enjoyed if blockchain technology had been widely adopted in the country.

In its latest “State of Crypto Report”, the exchange said that people of the United States could have collectively saved a staggering $74 billion in credit card transaction fees in 2022 alone by embracing blockchain alternatives.

Americans Are Frustrated Over High Fees

The Coinbase report delves into how the crypto economy can revolutionize everyday finance, making it fairer, cheaper, and more accessible nationwide. It also sheds light on the inefficiencies of the current financial system in the United States, emphasizing the exorbitant fees and sluggish transaction speeds associated with traditional banking methods.

By analyzing publicly available data from reputable sources such as the Securities and Exchange Commission (SEC), the US Census Bureau, and Statista, Coinbase arrived at the striking conclusion that blockchain technology could have saved Americans an average of $600 per household in credit card fees.

The State of Crypto Report also found that business owners spent over $126 billion on fees to process credit card transactions, making it the second largest expenditure after labor costs. However, the company believes that the fees could have been reduced to the barest minimum or nothing at all with blockchain technology.

“Merchants spent more than $126 billion on fees to process credit card transactions. By using blockchain technology instead, they could have paid next to nothing,” reads the report.

The exchange thinks that the current financial system in the US is expensive for an average American. As such, the citizens are frustrated over the excessive charges by payment apps and other financial platforms.

Coinbase pointed out that frustration over fees ranks as the top reason for discontentment with the existing financial system among Americans, along with the presence of intermediaries charging high fees for money transfers.

Faster Transaction Time with Unrestricted Bank Hours

Due to these concerns regarding transaction fees, some Americans are open to having an updated financial system as long as it promises to rescue them from the nightmare.

Coinbase revealed that 71% of consumers who own digital assets are open to embracing blockchain for lower costs. Similarly, 70% seek faster transactions that can be processed at any time of the day outside of bank hours.

The crypto exchange has consistently refreshed its State of Crypto Report series with the most recent insights into America’s crypto landscape. Last August, the company unveiled an updated report shedding light on the state of crypto adoption in the vibrant city of New York.

According to Coinbase’s findings, at that time, 19% of New Yorkers were actively engaged in crypto, holding various cryptocurrencies. Moreover, residents of New York believed that the crypto industry has the potential to revolutionize the current financial system in the US by fostering fairness for consumers.