Coinbase, the largest cryptocurrency exchange in the U.S., believes American households could have saved approximately $74 billion in credit card transaction fees in 2022 if they used blockchain technology.
In Coinbase’s latest State of Crypto Report, the exchange outlined the frustrations of the current financial system, ranging from high costs to delays and difficult access, insisting that blockchain technology eliminates all the issues.
Saving $74B in Transaction Fees
Coinbase surveyed more than 3,500 U.S. adults for the report, and around 71% of the respondents said the major improvement they want in the current financial system is cheaper transactions. Another 70% wanted faster transitions, while 63% requested better access.
The survey revealed that frustration over fees is the primary cause of discontent with the current system. Unbanked and underbanked Americans say high fees are the main reason they have no bank or credit union accounts.
“Users of the system, both consumers and small businesses alike, must pay, then wait, then pay again as their money wends its way past intermediaries who add fees and time to the process,” Coinbase said.
However, with crypto, consumers can access cheaper, faster, and streamlined services for which they pay next to nothing. Each household could have saved an average of $600 if they utilized the blockchain in 2022.
Blockchain Payments Faster Than Wire Transfers
Blockchain payments can be up to 5,000x cheaper than wire transfers, especially for international transactions. Some wires charge up to $50, while a good number of blockchains collect less than $0.01 for fees.
In terms of speed, blockchain networks process payments at least 24x and as much as 432,000x faster than traditional methods. At their slowest, blockchains complete transactions in one hour, whereas conventional methods can take between 24 hours and five days.
In addition, blockchain payroll processes, remittances, and decentralized finance loan approvals have proven faster than the current financial system.
“Moving at the speed of the internet, from peer to peer without legacy intermediaries that keep bank hours and otherwise slow things down, crypto enables reliably fast payments, including cross-border payments and remittances; faster payroll to help boost consumer liquidity; and quick execution of smart contracts,” Coinbase added.