When it comes to conducting seamless transactions that are accessible and trusted, the common processes come up short. Cash, credit and bank wires do a complete disservice to the public in that consumers are left with indefinite waiting periods, holdouts or worse—a total loss of their funds.
This is where cryptocurrency has hijacked the system in terms enacting a feasible, advanced transactional process that guarantees a transaction. Accelerating the adoption of blockchain technology, which is the backbone of cryptocurrency, helps to ease the entirety of global banking. Essentially, it cuts out the middle-man, who is mistakenly entitled to a role that is unnecessary in the grand scheme.
The "unregulated" world of crypto is one of the most powerful processes in the digital age and enacts a better system to process payments. Here are the top three ways cryptocurrency is helping to democratize global transactions.
Putting software in place
Being that cryptocurrency is a digital form of currency, it is difficult not to associate this concept with something that is counterfeit in the eyes of the consumer, but this isn't the case. Cryptocurrency is one of the hardest currencies to manipulate based on its security features. Everyone can feel a sense of ease when trading in crypto because it is immune to manipulation thanks to the powers of blockchain.
Furthermore, businesses should feel empowered using cryptocurrency because of the essential guarantee on return, especially if using a trusted software to enact this process correctly. Something else to consider: banks cannot operate in the cryptocurrency space as efficiently as software built to handle bigger exchanges, especially across borders.
There is software that can process crypto transactions by exchanging crypto/fiat, provide back-end support and keep transaction ledgers—as opposed to traditional banks internal processes—which may take longer.
Making money, globally
Why isn't the process for sending money across the world easy? It's your money, right? Why does it sometimes take days, or even weeks to transfer money safely? Shouldn't you be able to move it as you please and ensure that it's getting there without having to pay steep fees along the way?
These questions are what spring-boarded the cryptocurrency craze.
When moving cryptocurrency, some processes can essentially expedite this process and create a more seamless transaction. For one, moving crypto can often be done a lot faster than physical money. Crypto also encounters a lower transaction cost to process payments and the blockchain technology behind it allows it to eliminate middle men, making transactions easier and more secure.
Universal payments
While the velocity of a transaction may increase the overall circulation in the global economy, it does not impact on Gross Domestic Product (GDP) growth. Yet, a universal system that can conduct transactions can play a vital role in businesses day-to-day. For small and mid-size companies, if they use crypto in their payment system they can potentially reduce their transaction costs and improve their supply chain with their global vendors on cross-border transactions. In my experience, cryptocurrency has the potential to grow the economy effectively and productively without hindering the payment process.
Stressing a system that is built to be incorruptible is essential in the 21st century, as everything is instantaneously found in the matter of minutes. Applying this concept to transactions can stimulate economies and create a domino effect of growth.
Consumers gravitate towards easier payment methods, which can clearly be seen over the years with systems that include PayPal and Venmo.
It comes down to a basic need for a system that converts cash into a feasible entity that is also accessible to everyone. The democratization of cryptocurrency helps to sustain growth and meet consumer demands. It's important for businesses and corporations looking to guarantee their transactions and provide a certain level of trust to the customer.
Kirill Radchenko, CEO of Paygine, a platform that is helping streamline money remittance, cryptocurrency exchange and global payments for goods & services.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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