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

In a new report that highlighted how cryptocurrency makes everyday finance fairer, cheaper, and easier, Coinbase shared its insights on how much Americans would have saved in Credit Card fees in 2022 had they adopted blockchain. 

Coinbase Highlights Need for Crypto Embrace in the US

In its latest “State of Crypto Report“, American cryptocurrency exchange Coinbase is convinced that Americans could have salvaged up to $74 billion in credit card transaction fees in 2022 alone if they had subscribed to blockchain alternatives. By this figure, Coinbase arrived at an average of $600 per household. The exchange thinks that the current financial system of the U.S. costs regular Americans way too much.

Furthermore, the exchange believes the system is too slow and too difficult to access. Coinbase highlighted the frustration associated with fees, especially with the presence of middlemen who place exorbitant charges on the transfer of one’s money. This unpleasant situation ranks highest in the list of discontentment faced by Americans. 

Looking back at two years ago, Coinbase says that adopting cryptocurrencies like Bitcoin or Ethereum could have saved these Americans a whole lot of money up to $74 billion. “At least three in five Americans want updates to the system that make it cheaper, faster, and more accessible,” the exchange said in its report.

Leveraging Crypto for Businesses

The crypto exchange arrived at these figures after searching publicly available data sourced from the Securities and Exchange Commission (SEC), the U.S. Census Bureau, and the data analytics firm Statista. Coinbase sees beyond having blockchain technology help individuals, but also boosting businesses. 

“Merchants spent more than $126 billion on fees to process credit card transactions,” the exchange mentioned in its State of Crypto report, citing that this figure amounted to their second largest cost after that of labor. “By using blockchain technology instead, they could have paid next to nothing.”

Adopting blockchain technology should not prove so hard for Americans especially as it looks like a vast majority of them are interested in having an updated financial system. Once they can be guaranteed low cost and speed, they will surely be open to integrating the technology. 

One of the currently reigning niches of the cryptosphere is spot Bitcoin ETF. After so many years of pushing for its approval, the SEC finally greenlighted the new offering last month and since that time till now, the ecosystem has been performing relatively well in terms of netflows and overall embrace.