Cryptocurrency Uncertainty Slows Small Business Adoption

A University of Michigan professor testified before the U.S. House Committee on Small Business on September 15, warning that small businesses may not be ready for cryptocurrency adoption.

Andrew Wu, associate professor of technology and operations at the Ross School of Business, argued that while the crypto industry sees small businesses as primary beneficiaries of digital assets, there are still regulatory uncertainties surrounding how these assets should be traded.

The GENIUS Act, passed last year, regulates stablecoins but leaves many questions unanswered. Wu noted that small business owners should ask five key questions before adopting cryptocurrency: which type to use, who else will need it, what the cost is, does it beat alternative payment methods, and what happens when something goes wrong.

Wu also expressed concerns about the irreversible nature of cryptocurrency payments, stating that more institutions are needed to support a scalable, large-scale payment system. The professor emphasized that small businesses should not be the first movers in adopting cryptocurrency without considering these factors.