In our increasingly connected world, cross-border payments are essential for a global economy. These payments allow people and businesses to send money across countries, which is becoming more common every day. However, traditional methods of sending money internationally can be very complicated and frustrating.
That’s where blockchain technology comes in as a potential solution, and how the overseers of this tech need to ramp it up to become the frictionless solution it has long promised it would be.
The Problems with Traditional Cross-Border Payments
Currently, sending money across borders often feels like a maze. According to Sheraz Shere from the Solana Foundation.
If we were to rate them, he would give them a score of just “two or three” out of ten. Many businesses are tired of these challenges. They want a better experience, similar to using apps like Venmo, where you can quickly send money to a friend with just a few taps. So, how can we achieve this?
Enter Blockchain and Stablecoins, Exit Crypto.
Blockchain technology and stablecoins (a type of cryptocurrency that has a stable value) offer promising solutions stated in the Cross-Border Payments Need a Time Machine. Can Blockchain Be the Ticket article from PYMNTS.
Shere emphasizes that these tools can simplify cross-border payments. Unlike traditional systems that rely on many banks to process transactions, blockchain allows for direct transfers. This means payments can be faster and cheaper.
For example, on platforms like Solana, the cost of sending money can be just a tiny fraction of a cent. Stablecoins help further by being tied to stable currencies, like the U.S. dollar. This reduces the risk of sudden value changes that can happen with other cryptocurrencies.
Making the Choice: Traditional or Blockchain?
When businesses look to expand internationally, they need to decide whether to stick with traditional payment systems or try blockchain-based options. Businesses should evaluate their choices based on cost, speed, and…
