Coinbase Report: Blockchain Could Have Saved American Households $74 Billion in Credit Card Fees
Coinbase, the largest cryptocurrency exchange in the U.S., has stated in its latest report that if American households had used blockchain technology in 2022, they could have saved approximately $74 billion in credit card transaction fees. The report highlights the frustrations of the current financial system, such as high costs, delays, and difficult access, and emphasizes that blockchain technology can eliminate these issues.
Saving $74B in Transaction Fees
According to a survey conducted by Coinbase with over 3,500 U.S. adults, around 71% of respondents expressed their desire for cheaper transactions as a major improvement in the current financial system. Another 70% wanted faster transitions, while 63% requested better access. The survey revealed that high fees are the primary cause of discontent with the current system, especially among unbanked and underbanked Americans who do not have bank or credit union accounts.
“Users of the system, both consumers and small businesses alike, must pay, then wait, then pay again as their money wends its way past intermediaries who add fees and time to the process,” Coinbase explained.
By utilizing blockchain technology, consumers can access cheaper and faster services for which they pay significantly less. On average, each household could have saved $600 in 2022 if they had used blockchain technology.
Blockchain Payments Faster Than Wire Transfers
Blockchain payments are up to 5,000 times cheaper than wire transfers, particularly for international transactions. While wire transfers can charge up to $50 in fees, many blockchains charge less than $0.01. In terms of speed, blockchain networks process payments at least 24 times faster and up to 432,000 times faster than traditional methods. The slowest blockchains can complete transactions in one hour, while conventional methods can take between 24 hours and five days.
Furthermore, blockchain payroll processes, remittances, and decentralized finance loan approvals have proven to be faster than the current financial system.
“Moving at the speed of the internet, from peer to peer without legacy intermediaries that keep bank hours and otherwise slow things down, crypto enables reliably fast payments, including cross-border payments and remittances; faster payroll to help boost consumer liquidity; and quick execution of smart contracts,” Coinbase stated.
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