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Why Business Transactions Are Trudging Toward Digital Denomination

Part 2 of 3: What are the prospective benefits of incorporating digital currencies into corporate operations?

By T&R Staff | May 17, 2022 at 03:20 PM
Stock illustration: Transfer of digital currencies

Last week, Treasury & Risk started a conversation with Alexander Bant, chief of research in the Gartner Finance practice, about why his firm predicts that 20 percent of large enterprises will be using digital currencies by 2024. Bant explained how the combination of smart contracts, blockchain technologies, and digital currencies have the potential to reduce, or even eliminate, human touch in the procure-to-pay process.

Although Gartner doesn’t yet see companies employing digital currencies in quite this manner, many are beginning to educate themselves about the implications of incorporating digital currencies into their operations. This week, we’re continuing the conversation.

Treasury & Risk:  Beyond the increased efficiency for staff that we discussed last week, what are the other benefits to companies of implementing automation throughout the procure-to-pay cycle?

Alexander Bant:  One potentially large benefit is in the area of fraud. North American companies that deal primarily with the Fortune 500 may not see a lot of fraud going on with corporate contracts. But once you move beyond that and start talking about entities in foreign locations, and you start considering the geopolitical conflicts that may arise, access to digital money that is outside the jurisdiction of any government entity might improve your trust in a business’s operations.

T&R:  And why are digital currencies less vulnerable to fraud than transactions denominated in other currencies?

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