6 Planning Scenarios for CFOs as Crypto Winter Ends

Uldis Tēraudkalns, CEO of Nexpay

Markets are decidedly more positive about blockchain-based crypto currencies following the approval on 10 January by the US Securities and Exchange Commission (SEC) of 11 bitcoin ETFs in the United States.

Simultaneously, central banks are pushing ahead with plans for CBDCs (Central Bank Digital Currencies) which will be inherently less volatile – one of the key causes of concern for CFOs. According to industry analysts Gartner, over eight out of 10 finance executives believe that Bitcoin poses a financial risk due to its rapid, deep and unpredictable price fluctuations. Finance chiefs are understandably cautious about adding an asset to the balance sheet when its value is so prone to change.

These twin developments raise the likelihood of a mixed fiat/crypto economy emerging before 2030. It is important for CFOs in larger enterprises to start planning for this. 

Solid business reasons to plan for a mixed crypto economy

One compelling reason is that cryptocurrency-friendly consumers are a highly attractive market. A new study by Harvard Business School professor Marco Di Maggio concludes they “have higher household incomes, live in wealthier and more educated ZIP codes, like to gamble, frequently use credit cards, and often overdraft their checking accounts”.

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