Coinbase Estimates Americans Could Have Saved $74 Billion in Credit Card Fees Through Blockchain Technology
Coinbase, in its latest “State of Crypto Report” released on Wednesday, emphasized the potential for blockchain technology to have saved American consumers billions of dollars.
According to the report, “In 2022, consumers could have saved at least $74 billion in credit card transaction fees by utilizing blockchain technology.” Citing widespread dissatisfaction with existing fees, the crypto exchange highlighted that “at least three in five Americans desire updates to the system to make it more cost-effective, efficient, and accessible.
The $74 billion estimate was derived from publicly available data obtained from sources such as the Securities and Exchange Commission, U.S. Census Bureau, and data analytics firm Statista. Additionally, insights from The Block Research contributed to Coinbase’s findings.
Coinbase envisions blockchain technology benefiting not only consumers but also businesses. Merchants incurred over $126 billion in fees for processing credit card transactions,” the report stated, identifying this as their second-largest expense after labor. “By leveraging blockchain technology instead, they could have significantly reduced these costs.”
Furthermore, Coinbase reported that more than 70% of Americans express a desire for an “updated financial system” with lower fees and faster transaction processing.
While Coinbase expands its operations beyond the U.S. into regions like Europe, Singapore, and Brazil, the majority of its revenue still originates from the U.S. The platform continues to advocate for increased regulatory clarity and access to digital assets from the U.S. government.
Coinbase also serves as custodian for the majority of newly launched spot bitcoin ETFs offered by traditional financial firms such as BlackRock, Franklin Templeton, and Grayscale Investments. As per Yahoo Finance data compiled by The Block, the cumulative trading volume for these spot bitcoin ETFs, which debuted last month, has exceeded $30 billion.
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