Annie GOLD Oakley 8 months ago

Bitcoin will win if adopted for Business' Cross Border Payments, Worldwide After today post about B2B Businesses in Bitcoin, leaving aside the topic about businesses needing or not a debit/credit system based on bitcoin, I thought I'll need to dive a bit deeper into the current dynamics. ## How businesses, especially in the B2B sector, are moving with cross-border payments. What I found is actually reeeally interesting! It's a huge market and for what I know not many are taking attention. Let me feed my point with some images, because look's like **small and medium-size businesses are turning to nonbank providers for cross-border payments** [^1]. ![](https://m.stacker.news/91487) Cool, Mckinsey reports we still use traditional banks, however NeoBanks are taking place and considering have been around for around a decade, it's probable they will overtake really soon > While domestic payments are becoming instant and digital, cross-border payments have yet to benefit from the transformative power of digital technologies. Fees for international payments currently average 1.5% for corporates and as much as 6.3% for remittances. And it can take up to several days for these payments to reach their recipient.[^2] Fees and delivery time, this topic sounds from the past for us in the bitcoin space... it's even more incredible that the preferred payment method for cross border payments is PayPal, followed by Checks and Wires [^3]! Really? I can't believe it! ![](https://m.stacker.news/91488) And checking at last year flows, B2B is covering a big chunk of the volume [^4] ![](https://m.stacker.news/91491) ![](https://m.stacker.news/91494) ... and the revenue it generates. Here some projections: ![](https://m.stacker.news/91493) Bitcoin... > ~~Blockchain~~ technology has the potential to help financial institutions to leapfrog to an infrastructure that is able to support near-instantaneous transactions and automate complexity. Blockchain was initially created to enable cryptocurrencies to operate without the need for centralized clearing and settlement of transfers between two parties. In the traditional system, banks keep their own separate records (ledgers) of all their transactions. When a payment is made, the ledgers of the two parties have to be reconciled. With cryptocurrencies, there is a single digital ledger, the blockchain. Every time a transaction is made, it is checked against this shared ledger to make sure the participant has the required funds to complete the transaction. — JP Morgan says [^5] Unfortunately traditional businesses, worldwide, continue operating under regulations just because they don't know better. The alternative is there, we can still be operating in commerce and following laws that have been there for us all for centuries. Where do we make a difference as business then? How one could operate without the need of reporting, bend to boring super-strict data privacy regulations just because someone took authority and decided it's safer for fraud prevention? How free is the current global market considering all the regulations that are in place to safeguard? We continue behaving that to do business, we should register a company, pay our taxes and follow the book of rules. 16 years of bitcoin, probably 14 of fiat bitcoin-flavored companies, and we see them failing, and more will fail, mostly because not even the authority know how to keep up with tech. Is this really the way we want to continue doing business, _innovating_? My last question for the poll below: # What's your preference? [^1]: Global payments in 2024: Simpler interfaces, complex reality - [PDF Report](📄.pdf) https://www.mckinsey.com/industries/financial-services/our-insights/global-payments-in-2024-simpler-interfaces-complex-reality#/ [^2]: Extending the benefits of digital technologies to cross-border payments