At the end of 2020 US Corporate Cash reserves grew 30% relative to 2019 data to an astonishing 2.1 trillion USD. Pressured by fears of inflation, due to the unprecedented level of money printing by the Federal Reserve as relief for the coronavirus pandemic, corporate treasuries such as Tesla, Square, Microstrategy, to mention a few, have been buying bitcoin, shifting the paradigm of traditional treasury management in a substantial way. This is part of a greater trend of cryptocurrency adoption fueled by the current global macroeconomic environment. During these times we’ve witnessed Governments, institutional investors, hedge funds, and several other high-profile entities integrate crypto assets into their financial planning.
Crypto-friendly regulation is another important factor that contributes to this global financial trend that combines traditional treasury management with crypto assets and blockchain technology. From authorizing commercial bank custody of digital assets to enabling crypto as legal tender, lawmakers around the globe are laying down the foundation that is needed to face the massive adoption we are witnessing worldwide.
Nonetheless, the most prominent digital assets by market cap remain highly volatile, which is the reason why most corporate treasuries consider this asset class as a financial risk. Gaugecash provides some of the more desirable benefits of the crypto asset class, like decentralization, immutability, transparency, peer to peer borderless transactions, which combined with cutting edge technology and the best price stability on the market makes it the prime candidate for the future of corporate finance and working capital management.
Gaugecash enhances corporate treasury management by enabling a seamless cost-efficient medium of exchange to process payments and manage liquidity. Gaugecash embellishes certain features that are simply not available with fiat currency, the following are some of the use cases of this world-class development:
- With the best purchasing power available by design Gaugecash can be used as an effective alternative or balancing asset to cash, which in the current macroeconomic environment depreciates over time due to inflation.
- Gaugecash can enable real-time and accurate revenue-sharing while enhancing transparency to facilitate back-office reconciliation.
- Gain exposure to new asset classes such as liquidity pools of the emergent Decentralized Finance that can provide yield generating opportunities.
- Gaugecash can be used to make and accept real-time, secure borderless payments from anywhere in the world. Each transaction can be audited in real-time, producing a powerful tool for treasury managers.
With Gaugecash processing, accepting and automating payments can be streamlined to the cash management process, generating a highly efficient model that increases the speed of the process overall and substantially lowers the cost of the financial supply chain, enabling a wide variety of payment use cases for today’s corporate treasuries.
