There is a prevalent sentiment in the US and US-focused businesses that crypto is a fad that has past its peak and has no real utility. However, companies with this mindset completely ignore the practical usage in the technology: the efficiency, the cost-saving, the red-tape eliminating, of a system that anyone can use by simply owning a computer. In today’s globalized economy, the agility to conduct transactions across borders is not just an advantage; it’s a necessity for survival and growth. Traditional financial systems, with their layers of intermediaries, fees, and regulatory complications, significantly hamper the speed and efficiency required for modern international commerce. In this article, I hope to shed some additional light on the practical benefits of the technology and how it will revolutionize the way we approach global business interactions.
The Transformational Impact of Blockchain
Blockchain technology provides a robust platform for secure, transparent, and instantaneous financial transactions that can cross borders without the cumbersome processes typical of traditional banking systems. This technology decentralizes financial control, allowing businesses and individuals to bypass problematic economic infrastructures, particularly in regions afflicted by financial mismanagement or political instability. One of the paramount benefits of blockchain is its ability to streamline transactions. Traditional methods for international payments involve various financial institutions, each adding layers of processes that slow down transactions and increase costs. For example, according to a report from World Bank, remittances cost 6.01 percent of each transaction, or $12.02 to send $200. Furthermore, it can take several days for the money to arrive:
Blockchain eliminates the need for these intermediaries, facilitating direct transactions that are not only faster but also cheaper:
Role in International Commerce
Many multinational companies have begun to incorporate cryptocurrency payments within their business operations. According to a 2021 survey, 58 percent of multinational businesses responded that they had used at least one form of cryptocurrency.
CoinGate, a leading cryptocurrency payment processor, reported facilitating 927,294 payments in 2022, noting that the processor was used for payments once every 34 seconds. (Anthony, 2023). Companies such as CryptoCadet, which is a decentralized payment processor that facilitates payments of custom tokens across several chains including Ethereum and Solana, are among the leaders in completely eliminating boundaries for international payments. In the summer of 2024, CryptoCadet reported a 267% increase an active users during this period alone, indicating a heightened interest not only in the ability to make cryptocurrency, but the flexibility to include altcoins as an available option.
Overcoming Cryptocurrency Skepticism
Despite its growing acceptance, blockchain technology and cryptocurrencies still face significant skepticism. Critics often dismiss these as speculative or unstable, meant to finance underworld criminal activity, overlooking their practical benefits in improving transactional efficiency and expanding global commerce.
As blockchain continues to prove its utility in real-world applications, such skepticism is gradually being replaced by recognition of its potential to transform the economic landscape.
Looking ahead, the potential applications of blockchain extend beyond simple financial transactions. Industries such as supply chain management, healthcare, and digital identity verification are beginning to explore how blockchain can solve some of their most intractable problems. Each successful implementation further demonstrates blockchain’s versatility and its capacity to redefine traditional business practices.
By providing a secure, efficient, and transparent method for cross-border payments, blockchain is not just an alternative to traditional financial systems; it is becoming the preferred solution for businesses that require global reach. As this technology continues to evolve and integrate into mainstream business practices, it promises to significantly alter the global economic system, making it more interconnected and efficient.
TechJD is the Founder of Ascendant.Finance, which assists web2 businesses to transition to web3, consulting on all facets including SEC compliance, tokenomics, development, and connecting with angel investors. For more information check out ascendant.finance or join the Discord.
