Hearts & Minds: Time to take the bitcoin between the teeth?

The tide is turning. Bitcoin has just passed the $100,000 mark. The incoming us president is a big fan, and regulation of crypto - in the us at least - is about to be swept aside. Against this, UK plc is looking decidedly old-fashioned. It’s been sniffy about crypto to date but is in danger of attempting to row against an increasingly strong, worldwide current. Arguably, there is a pressing case for embracing crypto, for accepting it as a form of payment.

Until now, such a move risked being seen as a gimmick. That, though, faces being swept aside. There is much to be said, PR-wise, for making the leap and being seen to be ahead of the pack.

There are practical Pros. Transaction fees are lower: merchant service providers typically charge up to 4 per cent per transaction; crypto fees are usually 1 per cent or less, unless it’s Ethereum, in which case there are ‘gas’ fees to pay. Cash flow is smoother and quicker: customer payments the old-fashioned way can take days to process; bitcoin is within the hour. There are no chargebacks: customers using bitcoin can’t contact a bank or card provider to have a transaction stopped and reversed; it’s up to you whether you choose to reimburse.

There are also Cons. Crypto is volatile: you’re entering a world of wild exchange rate movements.  One way to mitigate that risk is to use a service which instantly converts bitcoin into standard and flat currency. Accounting may be more difficult: your systems need to be able to handle bitcoin. Security is an issue: some crypto exchanges are fakes or the legitimate provider may go under. There is no protection - although that may change, regardless of Donald Trump, as pressure for some form of regulation grows.

But consider this: you will appeal to bitcoin believers. Crypto users are often more than mere users, they’re ardent enthusiasts, passionate about pursing an alternative currency and creating a better financial system. You will be seen as moving across. Not only will you attract their business, but you will be perceived as tech-savvy. Millennials and Gen Zs, those people you’ve struggled to reach, they will love you, which from a PR standpoint, today and going forward, is a pretty smart place to be.

Rest assured, Sodali knows crypto, the benefits and the dangers and how to deal with them and can provide total comms support.  

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.