Cross Border Payments Using Cryptocurrency And It's Benefits

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INTRODUCTION

Honestly, we all should be thanking God for the creation of the innovative digital currency one of which is known as cryptocurrency although, when it was first created and introduced to the world by satoshi nakamoto many in fact everyone had concerns in regards to whether or not we can trust or store value in something we cannot hold or see physically.

But now, majority of the world have adopted and began fully performing and executing majority of their financial transactions if not all with cryptocurrency and they have found that the services and features offered by this cryptocurrency by far transcends and superceeds that of the fiat financial system which we were all once used to.

Cryptocurrency offers more benefits when compared to the previous financial system we were using, especially in terms of Cross border transactions, some of the reasons why crypt is currencies are more beneficial and preferable to individuals for cross border transactions will be discussed they in this post, do give me your undivided attention.

• REDUCED TRANSACTION PROCESSING COST

Anyone who must have had the misfortune of being in a position where he or she needed to make a cross border transaction or payment back in the day, with the use of the Fiat financial system will testify that the transaction processing cost is just outrageous, and they felt they were being robbed by the banks or financial institution.

But when compared to the transaction processing cost for crossborder transactions with the use of cryptocurrencies the cost is very affordable and some may even say is not noticeable, this is one of the significant reasons why cryptocurrencies are more beneficial especially for cross broder transactions.

However, why we cannot totally blame this financial institutions is because they often require this charges to cover cost of maintenance of their institutions and different branches, but cryptocurrency doest not require all this because of its decentralized nature, making the choice or go to for most businesses and individuals.

• INCREASED TRANSACTION PROCESSING SPEED

The way cryptocurrency was created, was done in such a way that it does not really require or depend on a centralized authority and as such it operates with a degree of regulatory immunity, unlike the traditional banks and foreign exchange institutions which as a result of complying with regulations have to carry out many verification processes which causes a lot of delays in transaction processing.

Therefore, this is another reason why using or adopting cryptocurrency for transactions, especially cross border payments is beneficial to individuals and business men alike because it is much faster in processing transactions when compared to the traditional financial systems or institutions.

Also, owing to the fact that cryptocurrencies has access to features such as smart contracts and so on it does not need a human to serve as an intermediary for possessing transactions this alone eliminate the delays that could be caused by the imperfect nature of humans.

• INTRODUCTION OF INNOVATIVE AND ADAPTABLE TECHNOLOGY

Basically by creating and by implementing cryptocurrency for cross border transactions shows a very high level of adaptability on the part of cryptocurrency platforms seeing as it applies it's innovative technology in areas where there is a noticeable need for its superior services.

By cryptocurrency introducing itself into the business of facilitating cross border payments it has created a kind of competition between itself and the other institutions who were initially in charge of processing or facilitating these cross boarder transactions or payments as a result of this competition it is safe to say or conclude that there will be a lot of technological advancement and improvement on the part of the inferior institution so has to meet up with its competition.

Additionally as their technological advancement increases owing to the pressure to become the preferred platform for cross border transactions, it will likely gain attraction of the media, potentially attracting investors who will help to further facilitate additional development and growth in the sector of cross border transaction.

• FACILITATES INCREASED TRANSPARENCY AND SECURITY

In the world we live in today, a technologically and digitally advanced world, there are two things that are very important to people in this world today when it comes to their finances and transactions and that is security and transparency this two features are part of the fundamental building block on which cryptocurrencies operates.

Additionally, cryptocurrencies was built on blockchain technology, this blockchain technology is basically the mechanism that ensures features such as decentralization, transparency and security, through its complex cryptographic protocols and a immutable transparent ledger in which all transactions done on the network are recorded.

Cryptocurrencies are beneficial for cross border payments and transactions because, it's transparency basically ensures trust in the network, also it's cryptographic security protocols ensures that the network is almost impossible to hack or compromise hence, ensuring the safety of its users forms funds.

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CONCLUSION

In conclusion, cryptocurrencies are a dynamic innovation whose superior features and structure allows it to offer more advantageous and beneficial services to its users, just as seen in the case of cross border payments and transactions.

By implementing cryptocurrency in cross border transactions and payments we have been able to reduce the high cost of transactions, increase transaction processing speed, and also improve security and transparency in Cross border transactions.