Entrepreneurs’ Guide to Transitioning from Fiat to Digital Assets

Suppose you have an entrepreneurial vision to integrate cryptocurrencies into your business operations, moving away from traditional currencies such as dollars, euros, or hryvnias. But how exactly can you make this switch?

Let’s explore a typical scenario where you aim to incorporate cryptocurrency as a form of payment but are uncertain about how to make it happen.

Assessing readiness to embrace cryptocurrencies:

First and foremost, it’s crucial to determine the legal landscape surrounding cryptocurrencies in your target country. Not all nations recognize cryptocurrencies as legitimate forms of currency, and some have even opted to completely exclude them from their legal framework. So, you want to thoroughly examine the legislation of the country in which you intend to operate.

In certain countries, such as Japan, Germany, France, and Estonia, cryptocurrencies are considered legal means of payment. Meanwhile, the UK permits cryptocurrency exchanges and requires them to fulfill tax obligations, subject to rigorous state registration procedures.

Assessing the potential business benefits of transitioning to cryptocurrencies:

Determining the viability of implementing cryptocurrency payments requires a thoughtful evaluation of its potential advantages.

By embracing cryptocurrencies, businesses aim to expedite transactions with customers, regardless of their location or the constraints of traditional banking hours.

For instance, Bitcoin—as a payment system—eliminates the need for adhering to PCI procedures and enables faster payment processing, often outpacing the standard three-day waiting period. Similar benefits can be derived from other cryptocurrencies as well.

Furthermore, opting for cryptocurrency payments can yield positive PR outcomes, as it presents an appealing novelty for consumers.

Embracing this innovative payment method can help attract and engage tech-savvy individuals, traders, and crypto enthusiasts within the B2C business audience.

To figure out how many people in the target audience actually fit these criteria, you want to do A/B testing, using visuals, surveys, and looking at all the messages people send.

Checking if switching to cryptocurrencies is a good fit for your niche:

Generally, it’s considered suitable if more than 15% of your customers already use a specific type of cryptocurrency.

Here are some niches where working with digital assets has been successful:

— e-Games, betting, and trading

— Cryptocurrency journalism

— Creating content on cryptocurrency topics

— Marketing for cryptocurrency projects

— Niches related to mining: selling goods, renting equipment, and farm maintenance

— Niches related to traders, betting, and crypto enthusiasts

— Restaurants such as Starbucks, Subway, Burger King, KFC, and others

— Delivery services such as Takeaway, Shuttledelivery, Lieferando.de, and others

— Digital services such as Xbox Store, Microsoft, Overstock, and Namecheap

— Retailers such as Home Depot, Whole Foods, and NewEgg

— Travel platforms such as Expedia, Cheap Air, ScubaOtter, and Alternativeairlines

For large projects, adopting cryptocurrencies can be a way to attract a new audience. For small projects, using cryptocurrencies can be an additional unique selling point (USP) and a competitive advantage against rivals.

Formalizing cryptocurrency activities:

To ensure compliance with the law, it’s essential for companies engaging in cryptocurrency-related activities to undertake proper formalization.

For the correct formalization of cryptocurrency activities, it’s better to seek legal advice from professionals in countries where such activities are legally permitted or fall under certain conditions.

As the selection of lawyers depends on individual circumstances, there are no specific recommendations provided in this regard.

Implementing Know Your Customer (KYC) technologies to verify customer identities and establishing the necessary infrastructure is an added advantage that enhances reputation and credibility.

Using cryptocurrency gateway services:

A specific type of service known as cryptocurrency payment gateways can be employed to facilitate transactions involving cryptocurrencies.

Cryptocurrency payment gateways are companies that handle the legal aspects and enable entrepreneurs or individuals to enjoy the advantages of cryptocurrencies in exchange for a certain fee or percentage.

Essentially, cryptocurrency gateways establish an intermediary layer where cryptocurrency payments are converted into fiat currency for the recipient.

Legally speaking, the enterprise receives the payment in fiat currency into its account, while from the user’s perspective, the payment is made in cryptocurrency.

Technically, gateways can accept direct payments from wallets or other gateways.

It’s crucial for companies offering cryptocurrency gateway services to be registered in countries where such activities are legally permissible.