Business
Let’s Talk: Should I trust cryptocurrency with my business?
Cryptocurrencies are used for a variety of purposes by people. Some people buy cryptocurrencies with the assumption that their value will rise.
Whatever your financial strategy, there is a good chance that cryptocurrencies will affect you and the way you do business in the future. However, there is still a lot of uncertainty surrounding the use of bitcoin in business. Elon Musk, Tesla’s self-proclaimed “TechnoKing,” has recently received a lot of media attention. Recently, In a letter to its shareholders, Tesla Inc. disclosed that it has sold more than 75 per cent. He did point out that the selling shouldn’t be taken as a verdict on bitcoin, but it was just enough to cause a small decline in price.
In this week’s Let’s Talk, we asked our experts about their opinions on whether or not cryptocurrencies are reliable for SMEs.
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Robin Marchant, Director of Marketing APAC, Shopify
“When it comes to cryptocurrency, its potential uses are almost limitless. Beyond the investor debate, it’s fast gaining momentum as a payment option for businesses looking for faster transactions, lower processing fees, no chargebacks and support for local and international purchases.
“Today, enabling cryptocurrency in your business is simpler than you think. In fact, Shopify merchants have been able to accept crypto for payment since 2018 through platforms like Coinbase and Bitpay, with the confidence of knowing that Shopify provides the right systems and resources to support merchants.
“However, cryptocurrency is more volatile than traditional currencies and there are operational considerations to take into account, such as tracking trades, payments, receipts, and how to store the currency securely. For any business considering entering the market, it’s important to get a solid understanding of the space, and work with a trusted adviser who has the knowledge to help your business handle crypto payments.”
Sharon Williams, Founder and CEO, Taurus
“Crypto is fascinating for me as I work in the technology industry, so I am used to reviewing, investigating and testing running all things new and groundbreaking. Digital currency is no different, and yes, because we offer comms strategies to crypto entrepreneurs, we see it actively being used for business already. Is it trustworthy is hard to answer because it is like asking for money is trustworthy. It’s what you do with the money or the cryptocurrency that is more the question. Who knows where the future will go, but it has created a new way of thinking.
“We may be on the edge of global change, or we may be at the start of something that – even if it has a series of false starts – will create so much change – it paves a new future. Either way, I am enjoying the investigation, usefulness, application and the various technologies and rules that make up digital currencies. For me, personally, my team are bonused in cryptocurrencies when they work on Crypto clients to enable them to get in, test and see for themselves what the market is all about.”
Shannon Karaka, Head of Expansion ANZ, Deel
“According to Deel’s State Global Hiring 2022 Report, remuneration payments in the form of crypto have held steady the last six months, with ~5 per cent of all payments withdrawn from the Deel platform having been taken in crypto since January 2022. Crypto can be an attractive option for people who want to hedge against currency volatility, get paid faster or simply want to add crypto to their investment portfolio. They may also choose to take their pay in multiple crypto and non-crypto currencies to diversify further. And with more and more companies feeling the brunt of the skills shortage, any perk that affords workers greater flexibility should be welcomed.
“For businesses looking to transact with customers and suppliers in crypto, partnering with a reputable third party with the proper checks and compliance measures is crucial. This also applies to those looking to pay contractors in crypto, though an additional consideration should be to consider offering a choice of currency. For example, people may want to be paid in a stablecoin like USDC, which has historically been less volatile and thus provides greater income security.”
Pete Murray, Managing Director ANZ, Veritas Technologies
“The prospect of innovation can be tempting for business leaders looking to incorporate new technologies into their operations. Unfortunately, big opportunities usually come with equally big risks, with a lack of understanding leaving early adopters exposed from a security perspective.
“This can be said for cryptocurrencies, with the ACCC reporting that Aussies lost more than $205 million to scams in the first four months of 2022 – the majority resulting from ‘crypto-investment scams’, which saw an increase of over 300 per cent.
“Businesses should be wary of anyone making money transfer requests using cryptocurrency, as well as scammers taking advantage of employees unfamiliar with the complexities of crypto. Such demands should raise red flags as cryptocurrency is neither a legal tender nor regulated in Australia.
“Cryptocurrencies can also be used as a tool to aid ransomware attacks, with threat actors evolving their tactics and stealing precious company data in exchange for crypto payments.
“Tips for businesses to avoid getting caught include:
- Ensure employees are educated to identify and report suspicious online threats
- Have strict policies in place for processing business payments
- Regularly backup and encrypt company data, alongside an effective recovery strategy”
Kevin He, CEO, Cloudtech Blockchain Australia
“The advantages of cryptocurrencies such as Bitcoin for businesses largely outweigh the disadvantages.
“Research by Marella et al (2020), which is insightful in establishing what creates trust in cryptocurrencies for business owners. suggests that ‘coin transfers, immutability, openness, and decentralization are the functional attributes of Bitcoin, responsible for creating trust among the users’.”
“Immutability refers to the fact that crypto transactions cannot be manipulated, reversed or changed by anyone.
“Decentralisation means there are no third parties involved in the transaction process – therefore, any activity on the blockchain is transparent and can be seen by anyone, which enables trust to be built among users.
“Other benefits for business owners include complete control of assets for consumers; an extra layer of protection for traders; and any fraudulent transactions can be traced back to the blockchain.
“On the downside, there is still a lack of regulation in the crypto market. This makes the market more unpredictable and has resulted in most currencies not being backed or insured, unlike fiat currencies.
“However, these disadvantages are overcome by the significant benefits, including trustworthiness, cryptocurrencies have to offer for businesses.”
Carly Eva Benci, Founder, Crypto Carly
“Cryptocurrencies provide an immediate, indisputable means to receive and make payments to suppliers or clients, improving cash flow and saving time chasing up unpaid invoices.
“From the landscaper receiving immediate payment on job completion to an importer sending funds to his overseas supplier, the fees and time are the same – low and fast!
“As a working Mum of four beautiful children, I’ve spent the past five years investing in and studying cryptocurrencies. I’ve learnt so much about this exciting industry, and as a result, I am founding a business that educates others on how to navigate the digital and crypto worlds so they, too can create investment or business opportunities for themselves.
“It’s an exciting time for humanity as digital currencies, digital assets, and digital worlds become everyday aspects of our lives, just as the internet did in the 90s and social media in the 2000s – this is the next digital revolution changing our world!”
Lachlan Feeney, Founder and Executive Director, Labrys
“Many businesses will have been looking at the carnage in the cryptocurrency markets over recent months and asking themselves, ‘is this something that we can trust?’ However, that really isn’t the right question. It’s like asking whether the internet is trustworthy enough for businesses to use in their business operations. The right question to ask is which platform or sites on the internet are trustworthy and in the case of blockchain, which cryptocurrencies are trustworthy for business and which ones are not. Whilst the industry remains immature, this can be a difficult question to answer, particularly for those new to the blockchain industry. However, as the technology matures and regulatory clarity is provided, in hindsight, it will seem crazy that businesses, even as late as 2022, were still debating whether or not cryptocurrencies and blockchain technology would become core to day-to-day business operations. The answer is, they will.”
Nathan Reichstein, Chairman of Business Advisory Committee, Moore Australia
“It’s not an easy question to answer because it involves two issues: security and stability. In relation to security, cryptocurrencies are inherently secure in nature given its underpinned by blockchain technology. The blockchain is a ledger that keeps track of the ownership of cryptocurrency and its more difficult for hackers to access your funds.
“Whether or not you should use it in your business comes down to a whole range of issues. As we have seen over the last few months, cryptocurrencies are extremely volatile in nature. If you sold products in exchange for 10 ether in December 2021, it would have been worth approximately AU$50,000. If you left it alone and did not touch it, it would be worth around AU$16,400 in June 22. For a layperson who does know enough around how the entire ecosystem works, it is probably not worth taking such risks within your business operations.”
Rick McElroy, Principal Cybersecurity Strategist, VMware
“The short answer is it depends. Some businesses are built around cryptocurrencies, so for them, the answer is yes. For other businesses, there are many applications of cryptocurrencies that could make sense. Perhaps they are a gaming company looking to offer currency in the Metaverse. Perhaps they see creating their own coin for use in their own ecosystem as a strategic business advantage.
“Cryptocurrencies do, however, present risks. Numerous exchange hacks have brought the entire system into question, and crypto hijacks and theft occurs almost daily. An organisation suddenly being responsible for its own currency’s security may find itself ill-prepared unless there is a very carefully planned strategy to account for the threats against it. Finally, it’s worth noting that the market is extremely volatile for businesses using standard cryptocurrencies like Bitcoin and Ethereum.”
Wassim Dabboussi, CMO and Head of Community Engagement, Breakout Solutions
“Cryptocurrencies, by design, are the most secure method for two parties to transact without needing a third-party intermediary. Having said that, with the current lack of regulation in many countries, cryptocurrencies can present many risks for the business sector.
“These risks have not hindered the growing adoption of cryptocurrencies by businesses of many sizes and from several industries. There are many examples of this.
“It’s becoming more widely accepted that cryptocurrencies are the way of the future and will disrupt nearly every business sector in some way. It is imperative for businesses to be educated about the crypto space and understand how to adopt cryptocurrencies whilst minimizing risk.
“Businesses that adopt cryptocurrencies now will be ahead of the curve and will set themselves up for longevity and prosperity. However, before embarking on a journey into this ever-evolving space, it is important for business owners to have the skills and knowledge required to safely and securely incorporate digital assets onto their balance sheets and into their payment solutions.
“This is what we do at Breakout Solutions – we provide comprehensive educational opportunities that businesses can use to safely and securely adopt cryptocurrencies.”
Todd Lenfield, Country Manager ANZ, Chainalysis
“When comparing legitimate and criminal usage, illicit activity’s share of crypto volume has never been lower and is shrinking as an overall proportion of the cryptocurrency ecosystem. Transactions involving illicit addresses represented just 0.15 per cent of cryptocurrency transaction volume in 2021, nearly ten times lower than in 2017.
“The fact that ANZ and CBA, which have mountains of legislation to comply with, are confident launching various crypto services only goes to show that with the right tools and processes in place, businesses can feel safe offering and accepting crypto.
“Most businesses looking to accept crypto as payment for goods or services will do so through a third-party platform or exchange, so the main thing to do is to look for a reputable provider that is compliant with local regulation and has strong customer protections in place.
“Cryptocurrency has become much safer as adoption has grown. The space has become increasingly more well understood by regulators, who are working to provide better protections for businesses and consumers. It is predicted that this will become more heavily enforced within 6-12 months.”
Lisa Wade, CEO, DigitalX
“We’re witnessing the start of increasingly rapid mainstream adoption of crypto and digital asset investments as institutions become meaningfully involved. The rise of tokenised assets will unlock innovative new business models within the economy, leading consumers, corporates and investors to demand services that enable effortless access to web3. Crypto has the opportunity to allow Australian corporates to transact cheaper, smarter and faster.”
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Transport providers, businesses and governments on Saturday are rushing to get all their systems back online after long disruptions following a widespread technology outage.
The biggest continuing effect has been on air travel. Carriers canceled thousands of flights on Friday and now have many of their planes and crews in the wrong place, while airports facing continued problems with checking in and security.
At the heart of the massive disruption is CrowdStrike, a cybersecurity firm that provides software to scores of companies worldwide. The company says the problem occurred when it deployed a faulty update to computers running Microsoft Windows, noting that the issue behind the outage was not a security incident or cyberattack.
Here’s the Latest:
Microsoft: 8.5 million devices on its Windows system were affected
Microsoft says 8.5 million devices running its Windows operating system were affected by a faulty cybersecurity update Friday that led to worldwide disruptions.
A Saturday blog post from Microsoft was the first estimate of the scope of the disruptions caused by cybersecurity firm CrowdStrike’s software update.
“We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines,” said the blog post from Microsoft cybersecurity executive David Weston.
“While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.”
Weston said such a significant disturbance is rare but “demonstrates the interconnected nature of our broad ecosystem.” Windows is the dominant operating system for personal computers around the world.
Austrian doctors’ group calls for better data protection for patients
In Austria, a leading doctors organization said the global IT outage exposed the vulnerability of health systems reliant on digital systems.
“Yesterday’s incidents underscore how important it is for hospitals to have analogue backups” to safeguard patient care, Harald Mayer, vice president of the Austrian Chamber of Doctors, said in a statement on the organization’s website.
The organization called on governments to impose high standards in patient data protection and security and on health providers to train staff and put systems in place to manage crises.
“Happily, where there were problems, these were kept small and short-lived and many areas of care were unaffected” in Austria, Mayer said.
Germany warns of scams after major IT outage
BERLIN — The German government’s IT security agency says numerous companies are still struggling with the consequences of a far-reaching technology outage.
“Many business processes and procedures have been disturbed by the breakdown of computer systems,” the BSI agency said on its website.
But the agency also said Saturday that many impacted areas have returned to normal.
It warned that cybercriminals were trying to take advantage of the situation through phishing, fake websites and other scams and that “unofficial” software code was in circulation.
The agency said it was not yet clear how faulty code ended up in the CrowdStrike software update blamed for triggering the outage.
European airports appear to be close to normal
LONDON — Europe’s busiest airport, Heathrow, said it is busy but operating normally on Saturday. The airport said in a statement that “all systems are back up and running and passengers are getting on with their journeys smoothly.“
Some 167 flights scheduled to depart from U.K. airports on Friday were canceled, while 171 flights due to land were axed.
Meanwhile, flights at Berlin Airport were departing on or close to schedule, German news agency dpa reported, citing an airport spokesman.
Nineteen flights took off in the early hours of Saturday after authorities exempted them from the usual ban on night flights.
On Friday, 150 of the 552 scheduled inbound and outbound flights at the airport were canceled over the IT outage, disrupting the plans of thousands of passengers at the start of the summer vacation season in the German capital.
German hospital slowly restoring its systems after widespread cancellations
BERLIN — The Schleswig-Holstein University Hospital in northern Germany, which on Friday canceled all elective surgery because of the global IT outage, said Saturday that it was gradually restoring its systems.
In a statement on its website, it forecast that operations at its two branches in Kiel and Luebeck would return to normal by Monday and that “elective surgery can take place as planned and our ambulances can return to service.”
Britain’s transport system still trying to get back on track
LONDON — Britain’s travel and transport industries are struggling to get back on schedule after the global security outage with airline passengers facing cancellations and delays on the first day of summer holidays for many school pupils.
Gatwick Airport said “a majority” of scheduled flights were expected to take off. Manchester Airport said passengers were being checked in manually and there could be last-minute cancellations.
The Port of Dover said it was seeing an influx of displaced air passengers, with hourlong waits to enter the port to catch ferries to France.
Meanwhile, Britain’s National Cyber Security Center warned people and businesses to be on the lookout for phishing attempts as “opportunistic malicious actors” try to take advantage of the outage.
The National Cyber Security Center’s former head, Ciaran Martin, said the worst of the crisis was over, “because the nature of the crisis is that it went very wrong very quickly. It was spotted quite quickly and essentially it was turned off.”
He told Sky News that some businesses would be able to get back to normal very quickly, but for sectors such as aviation it would take longer.
“If you’re in aviation, you’ve got people, planes and staffs all stranded in the wrong place… So we are looking at days. I’d be surprised if we’re looking at weeks.”
Germany airline expects most of its flights to run normally
BERLIN — Eurowings, a budget subsidiary of Lufthansa, said it expected to return to “largely scheduled” flight operations on Saturday.
On Friday, the global IT outage had forced the airline to cancel about 20% of its flights, mostly on domestic routes. Passengers were asked to take trains instead.
“Online check-in, check-in at the airport, boarding processes, booking and rebooking flights are all possible again,” the airline said Saturday on X. “However, due to the considerable extent of the global IT disruption there may still be isolated disruptions” for passengers, it said.
Delta Air Lines and its regional affiliates have canceled hundreds of flights
DALLAS — Delta Air Lines and its regional affiliates canceled more than a quarter of their schedule on the East Coast by midafternoon Friday, aviation data provider Cirium said.
More than 1,100 flights for Delta and its affiliates have been canceled.
United and United Express had canceled more than 500 flights, or 12% of their schedule, and American Airlines’ network had canceled 450 flights, 7.5% of its schedule.
Southwest and Alaska do not use the CrowdStrike software that led to the global internet outages and had canceled fewer than a half-dozen flights each.
Portland, Oregon, mayor declares an emergency over the outage
PORTLAND, Ore. — Mayor Ted Wheeler declared an emergency Friday after more than half of the city’s computer systems were affected by the global internet outage.
Wheeler said during a news conference that while emergency services calls weren’t interrupted, dispatchers were having to manually track 911 calls with pen and paper for a few hours. He said 266 of the city’s 487 computer systems were affected.
Border crossings into the US are delayed
SAN DIEGO — People seeking to enter the U.S. from both the north and the south found that the border crossings were delayed by the internet outage.
The San Ysidro Port of Entry was gridlocked Friday morning with pedestrians waiting three hours to cross, according to the San Diego Union-Tribune.
Even cars with people approved for a U.S. Customers and Border Protection “Trusted Traveler” program for low-risk passengers waited up to 90 minutes. The program, known as SENTRI, moves passengers more quickly through customs and passport control if they make an appointment for an interview and submit to a background check to travel through customs and passport control more quickly when they arrive in the U.S.
Meanwhile, at the U.S.-Canada border, Windsor Police reported long delays at the crossings at the Ambassador Bridge and the Detroit-Windsor tunnel.
U.S. filings for unemployment benefits rose again last week and appear to be settling consistently at a slightly higher though still healthy level that the Federal Reserve has been aiming for.
Jobless claims for the week ending July 13 rose by 20,000 to 243,000 from 223,000 the previous week, the Labor Department reported Thursday. It’s the eighth straight week claims came in above 220,000. Before that stretch, claims had been below that number in all but three weeks so far in 2024.
Weekly unemployment claims are widely considered as representative of layoffs.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in an attempt to extinguish the four-decade high inflation that shook the economy after it rebounded from the COVID-19 recession of 2020. The Fed’s intention was to cool off a red-hot labor market and slow wage growth, which it says can fuel inflation.
AP AUDIO: More Americans apply for jobless benefits as layoffs settle at higher levels in recent weeks
AP correspondent Shelley Adler reports filings for unemployment benefits have risen.
“The Fed asked to see more evidence of a cooling economy, and for the most part, they’ve gotten it,” said Chris Larkin, managing director of trading and investing at E-Trade. “Add today’s weekly jobless claims to the list of rate-cut-friendly data points.”
Few analysts expect the Fed to cut rates at its meeting later this month, however most are betting on a cut in September.
The total number of Americans collecting unemployment benefits rose after declining last week for the first time in 10 weeks. About 1.87 million Americans were collecting jobless benefits for the week of July 6, around 20,000 more than the previous week. That’s the most since November of 2021.
Continuing claims have been on the rise in recent months, suggesting that some Americans receiving unemployment benefits are finding it more challenging to land jobs.
And there have been job cuts in a range of sectors in recent months, from the agricultural manufacturer Deere, to media outlets like CNN, and elsewhere.
The four-week average of claims, which evens out some of the week-to-week volatility, rose by 1,000 to 234,750.
Strong consumer demand and a resilient labor market has helped to avert a recession that many economists forecast during the extended flurry of rate hikes. As inflation continues to ease, the Fed’s goal of a soft-landing — bringing down inflation without causing a recession and mass layoffs — appears within reach.
While the labor market remains historically healthy, recent government data suggest some weakening.
The unemployment rate ticked up to 4.1% in June, despite the fact that America’s employers added 206,000 jobs.
Job postings in May rose slightly to 8.1 million, however, April’s figure was revised lower to 7.9 million, the first reading below 8 million since February 2021.
Darden Restaurants is adding Tex-Mex to the menu.
The parent company of Olive Garden, LongHorn Steakhouse, Yard House and other chains, said Wednesday it’s buying Chuy’s for approximately $605 million.
Darden said it will acquire all outstanding shares of Chuy’s for $37.50 per share. Those shares closed at $25.27 apiece on Wednesday, then soared past $37 in after-hours trading once the deal was announced. Darden shares fell 1% in after-hours trading.
Darden said the boards of Darden and Chuy’s have unanimously approved the acquisition. The deal is expected to close later this year, if it’s approved by Chuy’s shareholders.
Chuy’s Holdings Inc. was founded in Austin, Texas, in 1982. It now operates 101 restaurants in 15 states and has 7,400 employees. It’s known for its eclectic decor and fresh food, including handmade tortillas and sauces.
Like Darden, Chuy’s owns and operates all of its restaurants. Darden President and CEO Rick Cardenas said Chuy’s is a differentiated brand with strong growth potential that will expand Darden’s dining options.
Darden, based in Orlando, Florida, operates more than 1,900 restaurants and has 190,000 employees. It also owns Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze.
“Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy’s is an excellent fit that supports our winning strategy,” Cardenas said in a statement.
Chuy’s Chairman, CEO and President Steven Hislop said the acquisition will accelerate Chuy’s business goals and expand the brand to more communities.
The deal comes as both restaurant companies have been struggling with a downturn in customer traffic due to consumer concerns about inflation.
In Darden’s fiscal fourth quarter, which ended May 26, same-store sales — or sales at restaurants open at least a year — were flat compared to the prior year. Chuy’s same-store sales were down 5% in its first quarter, which ended March 31.
Investment bank Jefferies downgraded shares for both restaurant chains earlier this month, saying they’re being squeezed by price promotions at fast-food chains like McDonald’s as well as at casual dining peers like Chili’s and Applebee’s.
