From the strategic insights of founders to the operational expertise of a COO, eight industry leaders weigh in on the transformative potential of blockchain for cross-border payments. Spanning from blockchain’s future in global transactions to blockchain as a catalyst for payment evolution, this article explores the eightfold path to a more interconnected and efficient financial future.
- Blockchain’s Future in Global Transactions
- Revolutionizing FX with Blockchain
- Speeding Up Money Transfers
- E-Commerce Growing Through Blockchain
- Innovating Property Investments
- Enhancing Security with Blockchain Payments
- Simplifying Identity Verification
- Blockchain as a Catalyst for Payment Evolution
Blockchain’s Future in Global Transactions
Blockchain has transformed cross-border payments, gaining interest from major financial institutions and companies like MoneyGram, which partnered with Stellar. This technology allows for instantaneous, cost-effective, and trustless peer-to-peer cross-border transactions, with networks like USDT processing billions.
Blockchain’s efficiency has prompted companies like Visa and PayPal to embrace it. I predict ongoing disruption in traditional transactions, such as remittances, with blockchain eventually becoming the go-to for major transactions, such as cross-nation commodity purchases, business-to-business transactions, treasury operations, foreign loans, and relief packages.
Tayler McCracken, Editor-in-Chief, Coin Bureau
Revolutionizing FX with Blockchain
The single biggest hurdle in current FX transactions is the need to buy one currency and sell another. This friction and daily movement of funds inhibits the efficient operation of markets and increases transaction costs for all parties.
Blockchain currencies could establish a new common international currency, and remove the need to rely on the USD as a base-currency for international hires.
Additionally, payments are instantaneous, regardless of geography. Therefore, someone on the opposite side of the world could receive funds immediately with zero fiscal penalty as a common currency (such as Ethereum) was leveraged.
It could be a GAME CHANGER.
John Mac, Founder, Oz Backcountry
Speeding Up Money Transfers
I recently initiated a transfer of USDC to a friend of mine in the Philippines; it was already there in his wallet, ready to spend. Anyone who has ever had to walk to a bank to physically sign a wire transfer knows that this speed is the difference between an email and sending a letter in the post.
There are no limits on how much you can send, and you can, for yourself (or through the use of a smart contract), verify receipt or even escrow funds in a “trustless” manner. While AML and KYC need to be further integrated into this process, specifically for businesses so they can be sure their irreversible transfer is being sent to the right entity, I believe this is a true zero-to-one moment for international commerce. Money is finally at the speed of the internet.
Johnny Gabriele, Treasurer and Tokenomics Consultant, CryptoOracle
E-Commerce Growing Through Blockchain
Blockchain technology is going to have a big impact on e-commerce businesses and cross-border payments in the future. Starting with transparency, blockchain technology is going to provide businesses with a much more effective way to show consumers that they can trust the brand and different transactions. This could help brands build their customer base and improve the number of sales. And, from a security perspective, this transparency will ensure that brands take accountability for mistakes as well as are more careful about the way they go about certain processes.
Blockchain technology will also help to speed up the cross-border payment process. This means it’ll be a lot easier for customers to purchase products from abroad, and it’ll be a lot less expensive for both brands and customers.
Blockchain tech is the way forward for improving the online business landscape. The future holds exciting prospects for this technology and e-commerce business.
Lauren Carlstrom, COO, Oxygen Plus
Innovating Property Investments
One use case in finance is mortgage tokenization, which leverages blockchain technology to revolutionize cross-border payments. By fractionalizing real estate assets, this approach simplifies global investment in properties. It expedites transactions through decentralized ledgers and smart contracts, cutting intermediary costs and time delays.
This matters in 2024 and beyond because of its efficiency, making homeownership more accessible, fostering inclusivity for small-scale investors, ensuring transparency, and bolstering security in international transactions.
As finance evolves, the impact of mortgage tokenization and blockchain continues to reshape cross-border payments, promising a future of streamlined, secure, and accessible transactions in the mortgage industry.
Abby Shemesh, Chief Acquisitions Officer, Amerinote Xchange
Enhancing Security with Blockchain Payments
Blockchain technology will transform the security of cross-border payments. Traditional systems, where a single central entity, like a bank, controls the records, can be vulnerable. If this central system faces any breach or damage, it risks the users’ data.
Blockchain secures every transaction through cryptography, links each transaction to the previous ones, and shares the data across a ledger network. This distributed nature of blockchain makes it almost impossible for hackers to manipulate. They’d have to change every single record from the beginning, which is highly impractical.
Governments and financial institutions globally have been extensively testing blockchain. They are finding that these technologies offer exceptional security in large-scale applications. In the realm of international transactions, blockchain is paving the way. It’s secure and efficient, and companies that adopt blockchain for cross-border payments will likely outpace those who don’t. This technology is set to revolutionize the way we handle international payments, offering a more secure and reliable method than ever before.
Lucas Ochoa, Founder and CEO, Automat
Blockchain Simplifying Identity Verification
Blockchain technology is seen as a pivotal factor in transforming cross-border payments in the future. One major hurdle in international trade is verifying the identities of parties involved throughout the transaction process and establishing trust at various stages.
The potential of blockchain technology to address these issues of third-party verification and trust in international transactions is significant. Its inherent features, like immutability and transparency, present a unique chance to utilize digital identities in cross-border dealings.
The combination of blockchain technology and digital identities for companies could lead to substantial global savings, amounting to trillions of dollars. This saving would be achieved by streamlining the processes of third-party verification and enhancing trust in the international trade arena.
Thomas Franklin, CEO and Co-Founder, Bitinvestor
Blockchain as a Catalyst for Payment Evolution
Blockchain technology is poised to revolutionize cross-border payments and enhance international transactions in several ways. Having worked in the tech industry for years, I’ve witnessed its potential firsthand. Blockchain’s decentralized nature eliminates the need for intermediaries, reducing transaction costs and time. Smart contracts ensure trust and automation, streamlining cross-border transactions. Additionally, its transparency and security make fraud less likely, providing a safer environment for global payments.
In my experience, blockchain has the potential to make international transactions faster, cheaper, and more secure. It fosters financial inclusion by enabling individuals in underserved regions to access global markets. As blockchain continues to evolve, it will undoubtedly play a pivotal role in shaping the future of cross-border payments.
Krishna Rungta, Founder and CEO, guru99
