Cryptocurrency is becoming an increasingly important focus for Chief Financial Officers (CFOs) in North America. According to the latest Deloitte CFO Signals survey
Conducted from June 4 to June 18, this survey targeted 200 CFOs from companies with annual revenues of at least $1 billion. The survey shows an increasing interest in cryptocurrency adoption in corporate finance departments.
CFOs Accepting Cryptocurrency Despite Volatility
According to the survey, 23% of respondents expect their finance departments to integrate cryptocurrency for investment or payment within two years. This interest significantly increases to about 40% among CFOs of large enterprises with annual revenues exceeding $10 billion. Despite concerns about market instability, these executives recognize the potential benefits of cryptocurrency investments.
Concerns about cryptocurrency remain significant. Approximately 43% of CFOs cited price volatility as their biggest worry. This reflects historical instability, such as Bitcoin's 28% value drop in just 10 weeks earlier this year.
Complex accounting practices and insufficient industry regulation further complicate matters. About 42% of respondents cited accounting and control complexity as a hindrance, while 40% emphasized the lack of regulatory clarity. Recent developments, such as the establishment of the SEC's cryptocurrency task force, highlight regulatory uncertainty.
Nevertheless, CFOs seem undeterred. Around 15% expect to purchase non-stablecoin cryptocurrencies like Bitcoin and Ethereum as strategic investments within two years. This number increases to nearly 25% among CFOs of large enterprises. High potential returns, portfolio diversification, and inflation hedging continue to attract corporate financial leaders.
Stablecoins and Supply Chain Efficiency
Interest in stablecoins, cryptocurrencies pegged to assets like the US dollar, is growing among North American CFOs. Approximately 15% of the surveyed financial executives predict their organizations will adopt stablecoin payments within two years. For large enterprises, the adoption rate increases to 24%.
The appeal of stablecoins lies primarily in their ability to enhance customer privacy and facilitate cross-border transactions. About 45% of CFOs view privacy enhancement as a key advantage. Approximately 39% see stablecoins as a means to simplify international payments, reducing transaction costs and processing times.
Cryptocurrency-based payments can streamline complex transactions by eliminating discrepancies between buyer and seller records. The blockchain technology supporting cryptocurrency transactions provides secure, real-time transaction verification, enhancing supply chain management transparency and efficiency.
Beyond payments, the surveyed executives confirmed cryptocurrency's significant potential in supply chain management. Over half (52%) expect organizations to use non-stablecoin cryptocurrencies for supply chain logistics tracking and management. Meanwhile, 48% anticipate stablecoins to play a similar role.
Corporate discussions about cryptocurrency adoption reflect these trends. According to Deloitte's survey, 37% of CFOs have discussed cryptocurrency with the board, 41% with the CIO, and 34% with financial institutions. Only 2% reported no internal discussions about cryptocurrency.
BeInCrypto previously reported that corporate Bitcoin and cryptocurrency adoption is increasing, highlighting approaches ranging from aggressive accumulation to cautious exposure. Public companies currently hold over 4% of Bitcoin's total supply. Joseph Chalom, formerly of BlackRock's digital assets strategy, has transitioned to become co-CEO of Sharplink Gaming, an Ethereum financial company. Chalom aims to "activate" Sharplink's Ethereum holdings.
Coinbase exchange is one of the companies accelerating the "Saylor wave" by gradually increasing its Bitcoin reserves. Meanwhile, Michael Saylor, board chairman of MicroStrategy (now rebranded), appeared on CNBC to emphasize the importance of Bitcoin financial trends.
Saylor stated, "There are now 160 companies utilizing Bitcoin in the public markets, up from about 60 last year. So the Bitcoin financial movement is exploding. Companies like Meta Planet in Japan, Capital B in France, and Smarter Web in the UK are among them."
However, small businesses solely engaging in Bitcoin and cryptocurrency acquisition risk severe financial pressure during market downturns.
While the turning point for corporate cryptocurrency adoption may still be ahead, Deloitte's survey clearly indicates an increasing trend. CFOs are aware of both the risks and opportunities presented by cryptocurrency, signaling a transformative period in corporate financial strategy.
