Host Merchant Services

Menu
Facebook-f X-twitter Linkedin-in

Cryptocurrency and Stablecoins in 2025: Should Your Business Accept Digital Currency?

Cryptocurrency and Stablecoins in 2025: Should Your Business Accept Digital Currency?

Posted: September 11, 2025 | Updated:

The rise of digital currencies is expected to continue into 2025, with Bitcoin, Ethereum, and a new generation of USD-pegged stablecoins becoming increasingly commonplace. Today’s crypto landscape includes highly volatile coins (like Bitcoin and Ethereum) as well as fiat-backed stablecoins that hold steady at one dollar each.

For merchants, this means new opportunities and associated risks of accepting digital currency. Below, we explain how cryptocurrencies and stablecoins work, outline the advantages and drawbacks of receiving them, and show how a business can accept digital currency and implement crypto payments safely in the U.S. context of 2025.

What Are the Popular Cryptocurrencies Today?

Bitcoin (BTC) is the first and largest cryptocurrency, a decentralized digital currency running on a peer-to-peer network. It has no central authority, and its transaction history is secured on a public blockchain by cryptography. Bitcoin is highly volatile – its price has swung dramatically over the years (for example, reaching new highs after 2024). Ethereum (ETH) is a similar blockchain platform that supports smart contracts and decentralized applications. Ethereum’s native coin Ether has the second-largest market cap after Bitcoin.

Other popular cryptocurrencies include Litecoin, Polygon, Dogecoin, and numerous altcoins. All these currencies fluctuate widely in value, since none is tied to a stable asset.

What Are Stablecoins?

Stablecoins are cryptocurrency tokens designed to maintain a stable value of exactly $1 (or another fiat currency value). Most stablecoins are “fiat-backed” – each token is redeemable for one U.S. dollar held in reserve, so they maintain a constant price.

For example, USD Coin (USDC) and Tether (USDT) are large U.S. dollar–pegged stablecoins. In practice, stablecoins combine the fast, borderless payment rails of cryptocurrency with the price stability of the dollar. (By contrast, algorithmic stablecoins or uncollateralized coins have proven risky; the TerraUSD “UST” collapse in 2022 was a dramatic example.)

How Crypto Payments Work?

To accept any crypto payment, a merchant needs a digital wallet (a secured account on a blockchain). When a customer pays, they send coins from their wallet to the merchant’s wallet address. In physical stores, this often utilizes QR codes: the register displays a code linked to the merchant’s wallet, and the customer scans it with their mobile crypto app to complete the payment. Online, crypto can be added as a checkout option (many e-commerce platforms and plugins support it).

Behind the scenes, a crypto transaction is broadcast on the blockchain; once confirmed it deposits the crypto into the merchant’s wallet. Stablecoins function similarly to other coins at a technical level, but since each stablecoin is worth $1, merchants can avoid crypto price fluctuations. In practice, many merchants use payment processors (like BitPay, Coinbase Commerce, Stripe, or Shopify) that handle crypto transactions. These services generate wallet addresses or payment buttons for the merchant, accept the crypto, and can instantly convert it to dollars.

This “hands-off” approach keeps crypto off the business’s balance sheet (payments are immediately cashed out to USD).

Accept Digital Currency – Pros and Cons

Accepting crypto can cut fees and open new markets, but it also demands vigilance. Many businesses strike a balance by not holding coins themselves; instead, they use a payment processor to collect crypto, immediately convert it to USD, and deposit it as with any other currency. This way, the business enjoys the speed and novelty of crypto (a marketing plus) without holding volatile assets.

Therefore, merchants should weigh the benefits and risks of crypto payments.

Pros

  • Crypto payments can attract tech-savvy or international customers. Accepting a trendy payment method can generate press and social media buzz, especially if competitors aren’t doing the same. For example, Shopify’s merchants began taking USDC in 2025, touting it as “borderless” commerce.
  • Cryptocurrency fees can be significantly lower than those of credit cards. Credit card processing often costs 2–4% per sale; many crypto networks charge under 1% (and some charge nothing beyond network gas fees). This is especially helpful for cross-border sales, as crypto payments bypass foreign transaction fees and bank delays.
  • Crypto transactions are final once confirmed. There is no bank or network mediation to reverse a sale, so scammers cannot easily force chargebacks. This allows businesses to manage their cash flow more effectively, reducing the risk of fraud. (On the flip side, merchants must handle any refunds themselves, since there is no automatic reversal.)
  • If a merchant accepts a U.S. dollar stablecoin (such as USDC), they enjoy all the crypto speed advantages without price volatility. The stablecoin remains at $1, allowing the merchant to accept it and convert it to USD on demand. This hybrid model gives the benefits of crypto rails with the predictability of cash.

Cons

  • If you accept Bitcoin or other non-stable coins, their market value can plunge suddenly. A sale that earns $100 worth of crypto today might be worth only $80 tomorrow, unless the crypto is converted immediately. Merchants exposed to this risk must either convert promptly or be prepared for that uncertainty. (Converting immediately avoids the risk, but adds the need for a reliable payout service.)
  • Rules for crypto are rapidly evolving. In the U.S., the IRS treats crypto as property, so every transaction is a taxable event. Businesses must record the fair market value of crypto receipts and account for gains/losses. More broadly, laws are in flux: new federal bills (the GENIUS, STABLE, and Clarity Acts passed in 2025) will impose regulations on stablecoin issuers and clarify crypto classifications. This evolving landscape means compliance risks – for instance, a sudden requirement could force changes in how merchants handle crypto funds.
  • Accepting crypto requires some technical setup and bookkeeping. Staff need training on wallets and security, and accounting must track crypto valuations. If a customer demands a refund, the merchant must manually issue a crypto payment or convert to dollars first (unlike instant card refunds). These extra steps can introduce inefficiency, especially during busy seasons.
  • If a business holds crypto, it can be stolen by hacking if the keys are not adequately protected. (See next section for safeguards.) Even with payment providers, there is some risk of service outages or integration errors. Fraud can still occur if a merchant’s crypto address or QR code is tampered with, although reputable gateways mitigate this risk.

How to Implement Crypto Payments Safely

If a business decides to enable crypto payments, the key is safety and compliance. Below are practical steps and options to do this securely:

1. Use a Payment Processor or Gateway

For most merchants, the most straightforward path is to partner with a trusted crypto payment service (for example, BitPay, Coinbase Commerce, Stripe, or NOWPayments). These providers handle the technical integration (online plugins, invoice links, or point-of-sale terminals), security, and often the fiat settlement.

For instance, Shopify’s native checkout allows merchants to accept USDC via Coinbase and Stripe with no additional integration – customers pay in stablecoin, and Shopify credits the merchant in their local currency immediately. Such services typically employ strong security measures (encryption, two-factor authentication) and KYC/AML checks to protect transactions and comply with relevant laws.

Importantly, they can instantly convert cryptocurrency into dollars at the point of receipt. This “hands-off” approach keeps crypto off the company’s books, since the third-party vendor converts all payments in and out of fiat currency. Using a payment processor means you never hold the crypto yourself – you receive the USD amount of each sale after conversion, much like a card transaction.

2. Enable a Crypto Checkout or QR Code

Whether via a processor or self-hosted solution, offer a clear crypto payment option at checkout. In an online store, this could be a “Pay with Bitcoin/Ethereum/USDC” button that generates a payment request and QR code.

In a physical store, display a QR code linked to your wallet address (or, better yet, use a secure terminal that interfaces with the processor). Brick-and-mortar shops that accept crypto usually display “Bitcoin Accepted Here,” and the sale is completed by scanning a QR code to transfer the coins. Ensure the displayed address matches your own, and never share private keys.

3. Protect Your Wallet Keys

If the business holds any cryptocurrency (for example, if you allow customers to donate in cryptocurrency or accept stablecoins into your wallet), use strong security measures. Keep private keys offline in a hardware wallet or a multi-signature vault. Only transfer small amounts into an online “hot” wallet as needed for transactions.

Require multi-factor authentication on any web wallets or exchange accounts. Enforce strong password policies and regular security audits. Regularly update all wallet and gateway software.

4. Comply with Taxes and Regulations

Because the IRS calls crypto “property,” every time you receive crypto, you must record its dollar value and report it as income. Maintain a ledger of cryptocurrency transactions for accounting purposes. If using a gateway, many provide statements of conversions and USD deposits, which can simplify bookkeeping.

Also, ensure you follow any state or federal money-transmitter laws. Using a major processor generally covers regulatory compliance, but verify this for your specific situation. Starting in 2025, new U.S. laws (like the GENIUS Act) will require stablecoin issuers to hold reserves and disclose them. Businesses should choose stablecoins from regulated issuers, knowing there is now federal oversight.

5. Follow Strict Security Practices

Work with providers that employ industry-standard protections. Reputable crypto payment gateways use encryption, fraud monitoring, and two-factor authentication to safeguard transactions. Encourage your team to enable 2FA on all admin accounts. Requiring a secondary code significantly reduces the risk of unauthorized access.

Be vigilant for phishing attempts or scams. Train employees on security and have a clear incident plan. If integrating crypto into existing systems, patch and test thoroughly. You should also consider transaction monitoring – for high-value or unusual crypto sales, have an alert system to flag suspicious patterns.

By following these measures, merchants can accept cryptocurrency with minimal risk. Payment processors like BitPay and Coinbase also advise businesses to convert quickly to cash to avoid exposure to price swings. In practice, a small business might keep one or two stablecoins on hand for liquidity (since their value won’t nosedive) and immediately cash out any volatile coins.

Conclusion

Cryptocurrencies and stablecoins are no longer just a niche – by 2025, they will have entered mainstream commerce and regulation. For U.S. merchants, accepting cryptocurrency can boost sales and reduce costs, but it requires an understanding of the technology and adherence to best practices. In short, businesses should weigh the marketing and fee benefits against volatility, tax complexity, and legal developments.

With the new federal stablecoin laws passed and payment platforms now supporting USD-pegged tokens, the environment is safer than ever to experiment. Companies can start small (perhaps offering only stablecoins) and use a credible payment processor to handle the tricky parts. If done carefully, accepting crypto can open a “global market” of digital dollars for your business, tapping into tech-savvy customers without risking financial stability.