Leveraging cryptocurrencies and digital assets for Small and Medium-Sized Enterprises (SMEs): Opportunities and challenges
Njideka Ihuoma Okeke, Godwin Ozoemenam Achumie, Somto Ewim · International Journal of Frontiers in Science and Technology Research · 2024
This review paper explores the potential opportunities and challenges associated with leveraging cryptocurrencies and digital assets for small and medium-sized enterprises (SMEs). The paper highlights the benefits of adopting digital currencies, including financial inclusion, reduced transaction costs, access to new markets, and enhanced transaction transparency and security. However, it also addresses SMEs' challenges, such as regulatory and legal uncertainties, volatility, and cybersecurity risks. Strategic approaches for SMEs are discussed to mitigate these challenges, including risk management, using stablecoins, and adopting best practices for integrating cryptocurrencies into business operations. The paper offers recommendations for SMEs considering digital assets. The future outlook for cryptocurrencies in the SME sector is considered, emphasizing the potential for further growth as regulatory clarity improves and technological innovations advance. This paper serves as a guide for SMEs looking to navigate the complex landscape of cryptocurrency adoption while maximizing the benefits and minimizing the risks.