How Blockchain is Transforming Accounting and Finance
What do accounting and finance industries look like in 2022? In a blog post published on January 18th, 2022, our partner, Sage Intacct, made seven predictions to sum up the differences in a world where COVID-19 is now endemic. They predict that investments in technology, such as automation and blockchain, will overcome the inefficiency and shortage of talent seen in almost every industry at the start of this year.
Sage’s key prediction: Blockchain adoption
Sage predicts that there will be significant adoption of blockchain technology, especially for B2B transactions. For example, accounting and finance organizations will turn to the powerful ledger-based technology using blockchain applications to accept cryptocurrency payments and keep information secure.
Sage also indicates that we will start to see some legitimate use cases appear in the B2B space; specifically:
- Applications using blockchain (distributed ledger) technology will increase.
- Consumer cryptocurrency adoption will continue, and finance leaders need to watch how this affects inflation.
- Business-to-business cryptocurrency applications will begin to go mainstream as businesses seek to accept consumer payments in crypto and even begin testing check-free business-to-business cases in some industries.
- Investment-grade crypto opportunities will become more widespread.
- New regulatory and other developments in this space in 2022.
Sage highlights our CEO and co-founder, Jeremy Almond’s vision for the future. Jeremy believes that “money is now programmable software,” meaning we can digitize finances, protect the digital cash cycle, and gain transaction-level detail using blockchain technology.
How have these pronouncements fared in the first six months of the year?
- As of March, there were 81 million Bitcoin users – 72% more than a year earlier and a remarkable 237% increase since 2018.
- In the U.S., 22% of the adult population owns a share of Bitcoin.
- On March 9, 2022, President Biden signed an Executive Order on Ensuring Responsible Development of Digital Assets. According to an accompanying fact sheet, it is the “first ever whole-of-government approach” to regulating cryptocurrency activities. Six areas are of focus in the order:
- (i) consumer and investor protection,
- (ii) financial stability and systemic risk,
- (iii) the prevention of illicit finance,
- (iv) U.S. leadership and competitiveness,
- (v) financial inclusion, and
- (vi) responsible innovation.
- A recent survey we conducted of 200 business executives revealed that:
- 67% of millennial business executives and 49% of all business executives either already have, have considered, or are actively exploring putting cryptocurrencies on their balance sheet.
- 71% of millennial executives see bitcoin rewards as valuable either as an investment opportunity, a source of value to cover the cost of decentralized finance applications or learning about this disruptive technology.
- At the end of March, Paystand introduced a tech-forward spend management platform, the DeFi Corporate Card, which offers instant provisioning of virtual and physical cards, advanced spend controls, and real-time expense reporting alongside bitcoin rewards. With the DeFi Card, businesses earn bitcoin rewards on every purchase.
The lack of talent in the workforce is becoming more and more apparent as businesses struggle to find qualified employees. Automation and blockchain technology are two solutions that will help overcome this shortage in the future. We’ve seen a significant uptick in businesses exploring how they can adopt blockchain technology, and we believe it will only continue to grow. As cryptocurrencies become more mainstream, we predict even greater adoption of blockchain for business transactions. Are you ready for the future?
Interested in learning more about our partnership with Sage? Paystand is fully integrated with Sage Intacct, making it easy for businesses to accept payments online, with advanced features like embedded payment links, branded payment portals, and reconciliation.