{"id":116391,"date":"2020-11-20T16:09:00","date_gmt":"2020-11-20T13:09:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-cross-border-payments-explained\/"},"modified":"2020-11-20T16:09:00","modified_gmt":"2020-11-20T13:09:00","slug":"crypto-cross-border-payments-explained","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-cross-border-payments-explained\/","title":{"rendered":"#Crypto cross-border payments, explained"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2edcac72664\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2edcac72664\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-cross-border-payments-explained\/#What_are_the_downsides_to_using_crypto\" >What are the downsides to using crypto?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-cross-border-payments-explained\/#How_much_money_is_sent_around_the_world_using_crypto\" >How much money is sent around the world using crypto?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-cross-border-payments-explained\/#What_advantages_does_crypto_offer_over_fiat\" >What advantages does crypto offer over fiat?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-cross-border-payments-explained\/#How_do_crypto_cross-border_payments_work\" >How do crypto cross-border payments work?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Crypto cross-border payments, explained<\/strong>&#8221;<\/p>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy81MWZlNDljMDdjOGU4OTlhNjlkZDkwZDc3ODIzODRhNi5qcGc=.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                What are the main advantages that crypto can offer when making cross-border payments, and what are the main challenges for consumers?\n                &lt;h2&gt;How can you easily, securely store and exchange cryptocurrencies?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;&lt;em&gt;By using a platform that has a carefully cultivated reputation for keeping digital assets safe.&lt;\/em&gt;&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;Crypto platforms are emerging that aim to make cross-border payments far less expensive than what many of us are accustomed to.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;One of them is\u00a0&lt;a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/pro.changelly.com\/?utm_source=cointelegraph&amp;amp;utm_medium=pr&amp;amp;utm_campaign=explained_pro_cross&amp;amp;ref_id=cointelegraph_explained_pro_cross\/\"&gt;Changelly PRO&lt;\/a&gt;. The company firmly believes that cryptocurrencies offer far greater levels of transparency than traditional financial institutions, and this will help instill confidence among consumers. Dozens of trading pairs are offered across the world\u2019s biggest digital assets.&lt;\/p&gt;&lt;p dir=\"ltr\"&gt;The platform is aiming to level the playing field by offering zero deposit fees, as well as competitive fees when funds are withdrawn from an account. This is coupled with an easy-to-use, intuitive interface \u2014 and 24\/7 support for users around the world. Changelly PRO says its priority is making crypto simple, and offering cutting-edge solutions that beginner and professional traders alike will find advantageous.\u00a0\n<\/code><\/pre>\n<p>Education is another area that Changelly PRO is hoping to address. To ensure that newcomers can get the most out of the service, in-depth learning materials cover everything from setting up an account to keeping it secure.<\/p>\n<p dir=\"ltr\">In September, the platform unveiled a brand-new <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/apps.apple.com\/ru\/app\/changelly-pro-crypto-exchange\/id1535485468?l=en\/?utm_source=cointelegraph&amp;utm_medium=pr&amp;utm_campaign=explained_pro_cross&amp;ref_id=cointelegraph_explained_pro_cross\/\">iOS app<\/a> for iPhones, giving users the freedom to complete transactions while on the move. This will also prove advantageous for those who don\u2019t use a computer.<\/p>\n<p dir=\"ltr\">With demand for remittances unlikely to subside, crypto-focused platforms are likely to play an instrumental role in delivering a fairer deal for consumers. This could help inject some much-needed competition in the space, forcing traditional institutions to innovate.<\/p>\n<div style=\"background-color:#f0f0f0;color:#253137;font-weight:bold;padding:8px 21px\">Learn more about <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/pro.changelly.com\/?utm_source=cointelegraph&amp;utm_medium=pr&amp;utm_campaign=explained_pro_cross&amp;ref_id=cointelegraph_explained_pro_cross\/\" style=\"color: #253137\">Changelly PRO<\/a><\/div>\n<div id=\"post-content\"><span style=\"color:#a9a9a9;font-size:12px\">Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. <\/span><\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_downsides_to_using_crypto\"><\/span>What are the downsides to using crypto?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><p dir=\"ltr\"><em>The likes of Bitcoin often get criticized for being too volatile, and some say blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> is too difficult for everyday consumers to understand.<\/em><\/p>\n<p dir=\"ltr\">It\u2019s important to note that there\u2019s one factor that will determine whether or not crypto-based cross-border payments are cheaper: the digital asset that\u2019s being used.<\/p>\n<p dir=\"ltr\">Making transfers using Bitcoin and Ether can be expensive, especially during times of peak demand. Ethereum has been overwhelmed by transaction volumes on multiple occasions over the years \u2014 fueled by a rise in demand for collectible cats and decentralized finance. Addressing scalability concerns is going to be crucial if cryptocurrencies are going to be used more widely for remittances. Ripple, which doesn\u2019t have a blockchain, offers solutions that are designed to make cross-border payments less expensive through the XRP asset. Several banks are already on board, and Ripple claims that\u00a0it can process 50,000 transactions per second.<\/p>\n<p dir=\"ltr\">Crypto will only help to solve financial inclusion provided that those who stand to benefit most from remittances can be educated about how digital assets work, and have access to internet-enabled smartphones so they can access their funds. There are reasons to be optimistic here. As we mentioned earlier, 80% of consumers in sub-Saharan Africa are unbanked, yet 91% own a mobile phone \u2014 and smartphone adoption is rising. On the continent, mobile payments are also exceedingly popular, meaning that the leap to crypto-based transactions may not be a big one.<\/p>\n<p dir=\"ltr\">The final challenge concerns regulation. Industry executives have warned that\u00a0more crypto regulation is coming, with the European Union\u00a0recently announcing plans to comprehensively monitor the market in just four years\u2019 time. This doesn\u2019t necessarily mean that a ban on digital assets is on the horizon \u2014 indeed, many lawmakers have acknowledged that they can have advantages in reducing the costs associated with cross-border payments. As a result, some are exploring whether they should launch their own\u00a0central bank digital currency.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_much_money_is_sent_around_the_world_using_crypto\"><\/span>How much money is sent around the world using crypto?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><em>Digital assets have a modest market share of overall cross-border payments \u2014 but demand is growing.<\/em><\/p>\n<p dir=\"ltr\"><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.juniperresearch.com\/press\/press-releases\/international-digital-remittances-520-billion-2024\">According to Juniper Research,<\/a> international digital remittances are set to surge to $525 billion by 2024\u2026 a 102% rise from where they were in 2019. This figure includes fintech platforms that solely deal in flat.<\/p>\n<p dir=\"ltr\">\u201cUtilizing a blockchain-powered network, operators can offer their users a much faster, cheaper and more transparent service,\u201d the authors said.<\/p>\n<p dir=\"ltr\">This view has been echoed by BlockData, which recently revealed that\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/download.blockdata.tech\/blockdata-remittance-market-blockchain-technology.pdf\">blockchain-based transactions<\/a> are typically 388 times faster and 127 times cheaper than traditional remittances.<\/p>\n<p dir=\"ltr\">It\u2019s a fast-moving industry, and it\u2019s difficult to put an exact number on the volumes of cross-border payments made using crypto. However, figures from Clovr showed that 15% of those who made remittances from the U.S. in 2017\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.clovr.com\/page\/sending-money-back-home\/\">used a digital asset<\/a> such as Bitcoin \u2014 making it more popular than prepaid cards, checks and cash. When it comes to business-to-business payments made via blockchain, this figure stood at $171 billion in 2019, but Juniper Research estimates that\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.juniperresearch.com\/press\/press-releases\/blockchain-based-cross-border-b2b-transactions\">this will exceed $4.4 trillion<\/a> in just four years\u2019 time.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_advantages_does_crypto_offer_over_fiat\"><\/span>What advantages does crypto offer over fiat?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><em>It\u2019s cheaper and faster\u2026 and could also help clamp down on money laundering.<\/em><\/p>\n<p dir=\"ltr\">There\u2019s a lot of excitement surrounding how crypto could transform cross-border payments as we know it \u2014 making remittances, where workers in foreign countries send funds to their loved ones back home, much less expensive.<\/p>\n<p dir=\"ltr\">At present,\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/remittanceprices.worldbank.org\/sites\/default\/files\/rpw_report_september_2020.pdf\">the World Bank estimates<\/a> that remittances sent through fiat channels result in average fees of 6.75%. For someone on a modest income, this can take a substantial chunk out of their earnings. Although this is less than the 9.67% charged in 2009, there\u2019s still a long way to go. In the early 2010s, the G8 and the G20 set a target of slashing remittance costs to 5% \u2014 and the United Nations\u2019 Sustainable Development Goals also set a target of 3% by 2030.<\/p>\n<p dir=\"ltr\">Cryptocurrencies could help these goals be realized much faster.\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/global\/Documents\/grid\/cross-border-payments.pdf\">According to figures from Deloitte,<\/a> blockchain has the potential to reduce transaction costs by 40% to 80%. But the advantages may not end here. Currently, it can take three to five business days for funds to clear through old-fashioned wire networks \u2014 not ideal for someone who needs money in a hurry. But on certain blockchains, it\u2019s possible for payments to be confirmed in seconds.<\/p>\n<p dir=\"ltr\">The advantages may not end here. As Deloitte notes, blockchain transactions can be data rich \u2014 meaning that metadata can be transmitted from end to end. All of this can help clamp down on money laundering and terrorist financing, two areas of concern for regulators. Many crypto platforms have introduced Know Your Customer checks to verify users, too.<\/p>\n<p dir=\"ltr\">One crucial benefit that cryptocurrencies can offer is unlocking access to financial services for the unbanked.\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/lu\/Documents\/technology\/lu-blockchain-accelerate-financial-inclusion.pdf\">Research suggests<\/a> that 80% of consumers in sub-Saharan Africa fall into this category \u2014 and worldwide, a total of 1.7 billion people don\u2019t have a bank account. There can be a multitude of reasons for this. Financial institutions may not operate in their geographic area, these services could be too expensive, or consumers may have a lack of trust.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_do_crypto_cross-border_payments_work\"><\/span>How do crypto cross-border payments work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><em>These transactions are executed using blockchains \u2014 eliminating the need for banks, who often slow payments down substantially.<\/em><\/p>\n<p dir=\"ltr\">Let\u2019s imagine that you\u2019re in Spain but want to send funds to Africa. The first step involves converting fiat currency into a digital asset of your choice. A wide range of websites and platforms exist that serve as an \u201con-ramp\u201d \u2014 meaning purchases can be made using bank transfers and credit cards.<\/p>\n<p dir=\"ltr\">This cryptocurrency can be held in a secure wallet. When it\u2019s time to make a transfer to your friends, they can give you the address for their wallet \u2014 comparable to the account number you\u2019d get at an old-fashioned bank. These addresses can contain dozens of characters, so transcribing them carefully is crucial.<\/p>\n<p dir=\"ltr\">Once funds have arrived in an account, the recipient has several choices. They can either convert the crypto to fiat and withdraw it, or swap it for a less volatile digital asset such as a stablecoin.<\/p>\n<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/explained\/crypto-cross-border-payments-explained\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Crypto cross-border payments, explained&#8221; What are the main advantages that crypto can offer when making cross-border payments, and what are the main challenges for consumers? &lt;h2&gt;How can you easily, securely store and exchange cryptocurrencies?&lt;\/h2&gt;&lt;p&gt;&lt;\/p&gt;&lt;p dir=&#8221;ltr&#8221;&gt;&lt;em&gt;By using a platform that has a carefully cultivated reputation for keeping digital assets safe.&lt;\/em&gt;&lt;\/p&gt;&lt;p dir=&#8221;ltr&#8221;&gt;Crypto platforms are emerging that aim&#8230;<\/p>\n","protected":false},"author":1,"featured_media":116392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1024_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy81MWZlNDljMDdjOGU4OTlhNjlkZDkwZDc3ODIzODRhNi5qcGc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-116391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/116391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=116391"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/116391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/116392"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=116391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=116391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=116391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}