In the initial days of cryptocurrencies, very few people knew about it and hence, it was only used for the purpose of investment or saving. However, now the popularity of these virtual assets is on the rise; it can be used to make payments in shops to buy commodities and it can be used to pay for services that too from anywhere and at any time. But, is this a safe mode of a transaction? With no legal existence, can we accept it in return for our services?
Reasons for accepting cryptocurrency from client
Regardless of all the doubts that surround this new currency, it has many benefits.
- Defies geographical borders: Clients from around the world can make international payments without having to face any government rules and regulations on cross border payments. Customers pay conveniently from their digital wallets and vendors get their payments, which they can keep as both crypto and fiat money with the help of inbuilt exchange.
- Instant payment: In the banking system, international payment takes time, maybe a few days, too, as it has to pass through many mediators. However, cryptos are paid and received instantly as it only uses blockchain technology; therefore, international payments take the same time as local payments take.
- Secure mode of payment: Payments done on the blockchain are decentralized; hence, it is impossible to hack a system and steal the identity and information related to customers. Also, the transactions made on blockchain are irreversible, so there is no chance of fraudulent purchases.
- Wider customer base: It is a great way to tap into a wider customer base, preferring the ease of payment without any restrictions. There are above 34 million people around the world who own blockchain wallets. Bitcoin payments are now being accepted across different sectors like travel, retail, logistics, healthcare, education, and many more. Currently, there are also several ways to easily earn Bitcoin through Bitcoin casinos, Bitcoin games, Bitcoin gambling, etc.
Things to keep in mind before accepting cryptocurrency
- Volatile currency: Cryptocurrencies are highly volatile assets, which means that there is a sudden rise and fall in the value of a token. If you are considering accepting virtual tokens from your client, then make arrangements for immediate conversion of the virtual token to fiat cash or save it in your digital wallet if you want to keep it as it is.
- Anonymous payment: In cryptocurrency payments, the clients do not have to provide their identity to make payments. So, ensure that you are being paid by the client and not by any other person on behalf of the client. This is very important to ensure your safety.
- Draft a proper engagement letter before working with the client: In the engagement letter, clearly mention the terms of conversion to fiat currency, identification of the payer, and share responsibility for the cost of storage and the threat of any loss.