As digital transformation continues to reshape the way transactions are conducted worldwide, small businesses across Florida are increasingly viewing cryptocurrency not merely as a tech trend, but as a practical tool for everyday operations.

From payment flexibility to digital assets like NFTs, cryptocurrency presents opportunities for entrepreneurs along Florida’s Fantastic Coast—and across the Sunshine State.

But it starts with understanding what cryptocurrency is.

What Is Cryptocurrency?

“Cryptocurrency is a type of digital or virtual currency that uses cryptography for security, making it difficult to counterfeit or double-spend, says Guangzhi Shang, associate professor of Operations Management and Jim Moran professor of Business Administration at Florida State University’s Department of Business Analytics, Information Systems and Supply Chain.

“A related concept, blockchain, describes the technology that powers the cryptocurrency system.”

In other words, cryptocurrency is a decentralized form of money that can be used to pay for goods and services, invest in digital assets, or even create unique collectibles called NFTs (non-fungible tokens).

Payments Made Simple: Why Stablecoins Stand Out

Shang notes that the first consideration for small businesses in Florida is whether cryptocurrency can streamline payments.

He points to stablecoins—cryptocurrencies like USDC, DAI and USDT that are pegged to the U.S. dollar and maintain a 1:1 exchange rate—as particularly promising.

“If the main need is flexibility in payment options, they can consider stablecoin,” Shang said. “The main benefit is that the exchange rate is very stable.”

According to Capital One, a U.S.-based financial group, approximately 2,300 retailers accepted cryptocurrency as payment in the United States at the end of 2024. The group says Bitcoin is the most popular crypto with retailers; 58% of crypto-friendly businesses accept Bitcoin.

Adam Lyons, a business advisor for more than 500 brands, including PepsiCo and Nike, wrote in Forbes magazine, that he believes any company accepting cryptocurrency as a form of payment has a significant competitive advantage over the rest of its industry.

Why?

These digital dollars can be especially useful for businesses that cater to tech-savvy consumers or those who operate primarily online.

Shang is more cautious, however, when it comes to businesses investing in cryptocurrencies as part of their financial portfolio.

“Crypto as an investment option is very risky, especially in the short run,” he said. “It is not recommended to have more than 20% of an investment portfolio in crypto assets, even if the target use date is far from now, such as a retirement account. This principle applies to small businesses as well.”

NFTs: Digital Collectibles with Real-World Potential

NFTs are another area of crypto that businesses can explore, with ample opportunity in Florida’s entertainment-rich environment. From theme parks to concert venues to sports events, NFTs offer a creative way to deliver digital souvenirs and deepen customer engagement.

“These NFTs can represent a digital version of a piece of memory that might be important to consumers, such as a ticket to an event,” Shang said.

“The stablecoin and NFT use is good for small businesses of all sizes,” he said. “Just make sure that the owner is savvy enough to protect her digital wallet.”

But like any new business venture, the use of crypto has a learning curve. Digital wallet security, understanding market volatility and choosing the right platforms are essential steps.

Shang recommends starting by exploring resources such as introductory cryptocurrency courses on Coursera, an online learning platform, and the Finematics YouTube channel for more advanced insights.

It seems that Florida’s open business climate and diverse population may be a friend to crypto use in small business.

“The utility of stablecoin as payment tender depends on the population’s digital wallet accessibility and crypto-literacy,” Shang notes. “Florida has a rather vibrant population, and this population base will be significant.”