Small businesses have largely been ignored during the debate over digital currencies, even though they’re a hugely significant part of the U.S. economy and have much to gain from cheaper, more efficient payment systems.
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These businesses work with small margins, have less bargaining power than large companies, and suffer from cash flow problems as they wait to be paid for goods and services.
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Stablecoins and central bank digital currencies can help.
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These technologies can reduce payment processing costs, allowing small businesses to keep more of what they earn, and significantly accelerate how quickly they get paid.
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This could drastically improve small businesses’ liquidity and cash buffers, and help them survive negative economic shocks and thrive.
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How Digital Currencies Can Help Small Businesses
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