Cryptocurrency has evolved from a niche experiment into a mainstream financial tool, raising an important question for businesses: Should your company use cryptocurrency to pay its commercial obligations? As adoption grows among major corporations and startups alike, it’s essential to weigh the benefits and risks before jumping aboard this rapidly accelerating bandwagon.
Cryptocurrency first gained global attention with the introduction of Bitcoin in 2009, which was created by a person using the name, Satoshi Nakamoto. Initially embraced by tech enthusiasts and libertarians seeking a decentralized alternative to government-issued currencies, Bitcoin offered person to person value transfer without the need for banks. Over time, many other cryptocurrencies have emerged such as Ethereum, Litecoin, and stablecoins like USDC. Each of these cryptocurrencies have unique features aimed at solving limitations of traditional financial systems. Today, crypto is popular not only among individual investors but also institutional players, thanks to its speed, transparency, low transaction fees (in many cases), and 24/7 operability.
For companies considering paying commercial obligations, such as vendor invoices, there are some compelling advantages.
- First, crypto enables near-instant settlement with minimal fees, particularly useful for cross-border payments where traditional banking can be slow and costly.
- Second, the blockchain ledger ensures transparency and traceability, allowing both payer and payee to track the transaction in real time.
- Third, for companies operating in countries with unstable fiat currencies (fiat currency is a government-issued currency that is not backed by a commodity such as gold) or limited banking infrastructure, crypto can offer financial access and stability that local systems can’t guarantee.
However, these benefits are not without trade-offs. One of the primary concerns is price volatility. Cryptocurrencies like Bitcoin and Ethereum can swing wildly in value over short periods, making it difficult to manage cash flow and payment consistency. Stablecoins help mitigate this, but regulatory clarity around their use is still evolving. Another major drawback is limited vendor acceptance. Despite growing infrastructure, most suppliers still expect payment in fiat currency. Additionally, businesses that pay with crypto in jurisdictions like the United States may face tax complexities, as each payment could trigger a taxable capital gain or loss. There’s also a learning curve and operational risk, including wallet security risks (risk associated with unauthorized access, phishing attacks, malware etc.), employee training, and compliance with international crypto regulations.
Despite these challenges, some industries have embraced crypto for commercial payments. The technology and software sectors are leading the way, with companies like Microsoft, Shopify, and various SaaS platforms accepting crypto for services and making vendor payments via stablecoins. The freelance and digital creative economy, including designers, developers, and content creators, is another active user base, especially for cross-border payments. Supply chain and logistics firms in emerging markets also find crypto beneficial for bypassing traditional banking systems. Even some hospitality and luxury retail brands are experimenting with crypto payments for high-end B2B purchases, including inventory procurement and vendor services.
So where is the trend headed?
While large corporations have the financial and technical resources to test cryptocurrency solutions, small and mid-sized enterprises (SMEs) may soon find themselves drawn into the ecosystem. Regulatory progress, such as the GENIUS Act passed in July 2025, which created a legal framework for stablecoin use in business, provides much-needed clarity and confidence.
As payment platforms like BitPay, Binance Pay, and Strike continue to offer plug-and-play solutions for crypto bill pay, the barriers to entry for smaller companies are rapidly diminishing. Moreover, as vendors begin accepting stablecoins and international remittance providers evolve, crypto could become a practical tool for managing foreign obligations and supplier payments, even for businesses with modest IT resources.
In conclusion, the decision to hop on the cryptocurrency bandwagon shouldn’t be taken lightly. The technology offers genuine advantages, particularly for international transactions and industries that demand fast, transparent payments. However, companies must weigh the pros against significant challenges, especially regulatory risk, volatility, and tax implications. For now, early adopters are paving the way, and as the infrastructure matures, smaller businesses may find themselves increasingly incentivized to follow suit. Whether your company leads, lags, or watches from the sidelines, staying informed and prepared is critical in this era of digital financial transformation.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
All Rights Reserved
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