Cryptocurrency is increasingly becoming a focal point for North American chief financial officers (CFOs), according to Deloitte’s latest CFO Signals survey.
Conducted between June 4 and June 18, the survey polled 200 CFOs at companies with at least $1 billion in annual revenues, revealing growing interest in crypto adoption among corporate finance departments.
CFOs Embrace Crypto Despite Volatility
The survey found 23% of respondents anticipate their treasury departments will incorporate cryptocurrency for investments or payments within two years. The interest climbs significantly to around 40% among CFOs at larger firms boasting annual revenues exceeding $10 billion. Despite lingering worries over market instability, these executives recognize potential benefits from cryptocurrency investments.
Concerns about cryptocurrency remain significant. Approximately 43% of CFOs identified price volatility as their top worry. This unease reflects historical instability, such as a 28% drop in Bitcoin’s value over a mere 10-week span earlier this year.
Complex accounting practices and insufficient industry regulations further complicate matters. Around 42% of respondents cited accounting and control complexities as deterrents, while 40% highlighted a lack of regulatory clarity. Recent developments, including the US Securities and Exchange Commission’s creation of a crypto task force, underline regulatory uncertainty.
Nonetheless, CFOs appear undeterred. Approximately 15% expect to purchase non-stable cryptocurrencies, like Bitcoin and Ethereum, as strategic investments within two years. For CFOs at larger companies, this number rises to nearly 25%. The potential for high returns, portfolio diversification, and inflation hedging continues to attract corporate finance leaders.
Stablecoins and Supply Chain Efficiency
Interest in stablecoins, cryptocurrencies pegged to assets like the US dollar, is growing among North American CFOs. About 15% of surveyed finance executives predict their organizations will accept stablecoin payments within two years. Among larger corporations, acceptance climbs to 24%.
Stablecoins’ appeal primarily involves their capacity to enhance customer privacy and facilitate cross-border transactions. Roughly 45% of CFOs view privacy enhancements as the leading benefit. Approximately 39% see stablecoins as a means of streamlining international payments, potentially reducing transaction costs and processing times.
Crypto-based payments can streamline complex transactions, eliminating discrepancies between buyer and seller records. Blockchain technology, underpinning cryptocurrency transactions, provides secure, real-time transaction verification, improving transparency and efficiency in supply chain management.
Beyond payments, surveyed executives identified significant potential for crypto in supply chain management. Over half (52%) expect their organizations to utilize non-stable cryptocurrencies for tracking and managing supply chain logistics. Meanwhile, 48% foresee stablecoins serving similar roles.
Corporate conversations regarding crypto adoption reflect this momentum. Deloitte’s survey revealed that 37% of CFOs discussed crypto with their boards, 41% with their chief information officers, and 34% with financial institutions. Merely 2% reported no internal discussions about cryptocurrency.
BeInCrypto has previously reported on growing corporate Bitcoin and crypto adoption, emphasizing diverse approaches ranging from aggressive accumulation to cautious exposure. Public companies currently hold more than 4% of Bitcoin’s total supply. Recently, Joseph Chalom, BlackRock’s former Head of Digital Assets Strategy, transitioned to become co-CEO at SharpLink Gaming, a company that is recently positioning itself as an Ethereum treasury firm. Chalom aims to “activate” SharpLink’s Ethereum holdings.
Coinbase exchange is among the firms accelerating the “Saylorization” trend, progressively growing its Bitcoin stockpile. Meanwhile, Michael Saylor, the executive chairman of MicroStrategy (now rebranded as Strategy), appeared on CNBC to emphasize the significance of Bitcoin treasuries trends.
Saylor said, “There’s 160 companies that are capitalizing on Bitcoin in the public market, up from about 60 last year. So the Bitcoin treasury movement is exploding. And companies like Meta Planet in Japan and Capital B in France and Smarter Web in the UK.”
However, smaller firms engaging solely in Bitcoin and crypto acquisition risk severe financial strain during market downturns.
While the tipping point for corporate crypto adoption may still lie ahead, Deloitte’s survey clearly indicates a rising trend. CFOs acknowledge both the risks and opportunities cryptocurrency presents, signaling a transformative period for corporate finance strategies.
