Saved Billions in Credit Card Fees

Coinbase Announcement: Americans Could Have Saved Billions in Credit Card Fees with Blockchain

8 February 2024

The ground-breaking “State of Crypto Report” revelation from Coinbase has shown how blockchain technology may have greatly reduced the financial strain on American consumers from credit card fees

The study claims that by using blockchain technology in 2022, Americans could have saved an incredible $74 billion on credit card transaction fees—$600 less per family on average.

Blockchain vs Credit Card

Based on findings from The Block Research, the paper highlights how customers are increasingly seeking a more efficient, quicker, and more accessible financial system. Coinbase’s findings reveal that “at least three in five Americans want updates to the system that make it cheaper, faster, and more accessible,” emphasising the pressing need for reform in the current financial landscape.

Coinbase’s analysis, derived from publicly available data from the Securities and Exchange Commission, U.S. Census Bureau, and Statista, paints a vivid picture of the frustrations faced by consumers over excessive credit card fees. 

Beyond individual savings, the report highlights the substantial impact on businesses, with merchants spending over $126 billion on fees to process credit card transactions, making it their second-largest cost after labour. By utilising blockchain technology, these businesses could have radically reduced their outflow on credit card transaction fees, potentially saving billions.

Furthermore, Coinbase’s report delves into consumer preferences, revealing that over 70% of Americans express a desire for an “updated financial system” characterised by lower fees and increased efficiency. This sentiment underscores the growing demand for innovative solutions prioritising consumer welfare and affordability.

The US is still Coinbase’s main source of income despite the fact that the company is actively expanding its worldwide presence with initiatives in places like Brazil, Europe, and Singapore. The company’s efforts to promote better access to digital assets and clearer regulations demonstrate its dedication to creating an environment that encourages the use and innovation of crypto.

Coinbase’s role as a custodian for numerous spot Bitcoin ETFs launched by traditional financial heavyweights such as BlackRock and Grayscale Investments further solidifies its position as a critical player in the evolving financial landscape. 

With the cumulative trading volume for spot Bitcoin ETFs surpassing $30 billion, according to data compiled by The Block via Yahoo Finance, Coinbase’s influence extends far beyond the cryptocurrency exchanges.

With credit card costs looming large in both consumers’ and companies’ minds, the statement from Coinbase is a powerful reminder of the revolutionary power of blockchain transaction fees and contemporary technology. By embracing innovation and pushing for systemic change, a financial ecosystem that is more equal and efficient might be within reach.

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