Did you miss NADA? Did you attend but didn’t have time to see everything happening? No problem. We’ve got you covered in this quick recap. From the largest retailers like CarNow, AutoFi, Fuse and Upstart to the world's largest OEM’s in Ford, Toyota and GM and everyone in between such as large claims servicing companies, NADA 2022 had some of the most influential and important minds in the industry. The annual 3 day conference left people blown away with a newcomer.
From the opening of the conference Friday morning, CarNow announced they chose a new partner, Cion Digital, to allow their 5,000+ dealers to transact in cryptocurrency. With bright yellow shirts and a large QR code on the back, our Cion Digital team was very easy to find. In fact, we ran a promotion. The QR Code on our shirts (and on our cool physical coins) tied to a raffle page where Cion Digital gave out $500 in Bitcoin to one lucky winner. Spoiler alert: A lucky gentleman from Fremont Motors won. As we explored NADA - for some of us our first NADA - it was an incredible experience.
Between multiple halls of the convention center, we had the chance to engage with a lot of leaders in the automotive business. Among those conversations, we heard some questions that we’ll uncover here:
What is the United States Government's stance?
We always knew regulation would come and we will continue to embrace it. But, we had no idea that two days before the conference, President Biden would sign an executive order that would essentially legitimize cryptocurrency. The US Government had the opportunity to ban it like China had and yet, the US confirmed it is OK to hold cryptocurrency and different departments such as the US Treasury will now be responsible for gathering data and reporting back to the executive branch.
How do we protect dealers from the assets' volatility?
This is an important one. We are all used to looking at Dogecoin moving up and down 20%+ in one day. We understand and agree that while cryptocurrencies have come a long way, it is still a volatile market compared to the stock market. Two years ago, I could see my crypto portfolio appreciate or depreciate up to 25-30% daily - believe it me, it was gut wrenching. But we’ve come a long way since then where cryptocurrencies including Bitcoin, tend to have much smaller volatile waves now; however, it is still greater than the stock market fluctuation. It is important for dealers to understand there are 3 options (all of which we can pre-configure):
- Car buyers can pay in cryptocurrency such as Cardano. The dealer can choose to keep hodling (not a typo, we say hodl not hold) Cardano.
- Car buyer pays in Cardano but the Cardano is automatically converted into a stablecoin. A stablecoin is a digital equivalent to a fiat currency like the dollar. For example, USDC is a stablecoin that will always match the United States dollar; therefore, it never has fluctuations because it is always traded at a rate of 1.0, when comparing assets by a dollar value.
- Car buyer pays in Cardano and the Cardano is automatically converted into a stablecoin. At the same moment, the stablecoin will actually be converted into USD (similar to the money you have in your checking account when you look at it on a mobile app). At this point, we can also help dealers send this money back to their actual bank account through a common process called ACH. The only thing to note, the funds will get back to the bank account as fast as the bank account operates.
How hard is the process?
Cryptocurrency is a subsegment of blockchain technology. Like any new technology such as when I was a part of the cloud technology movement 10 years ago, explosive and innovative technologies can be a little difficult at the beginning. In the crypto world, there are new components such as wallet management, custody of assets, access to lenders etc. To the benefit of automotive businesses, digital retailers, claims servicing partners and others, Cion Digital has simplified the process. With just a few easy API’s to integrate, dealerships only have to navigate through a few screens to finish the cryptocurrency payment (or lending) process. We’ve made the hard, simple.
If you’re interested in learning more about why cryptocurrency is important and how it can enable your car dealership to accelerate new revenue opportunities, check us out.
Cion Digital is here to help car dealers accept crypto
It isn’t easy navigating the world of blockchain technology and cryptocurrencies on your own. Where does a dealer even start with understanding wallets, setting up cryptocurrency custody, designing user interfaces, accepting payments, etc.? While the back end involves many different players and can seem complex, the experts at Cion Digital have made it simple for businesses. We help clients grow and protect revenue opportunities by expanding and integrating existing financial systems. Our Blockchain Orchestration Platform enables auto dealers and other big-ticket retailers to accept cryptocurrency transactions.
We've built the ultimate crypto dealership platform to provide car payment and lending solutions unmatched in the industry. See how Cion Digital can help your business succeed in the rapidly evolving digital asset economy.