The future of cryptocurrencies is not going to be just about NFTs or games. Of course, games are becoming one of the best use cases for cryptocurrencies and blockchain technology but there are other use cases too that make this technology more useful in the real world. This is one of the oldest use cases where we can make use of cryptocurrencies to do cross-border transactions. Some banks have already started doing it with the help of XRP. The biggest advantage we get for using cryptocurrencies is that we can rely on it and it is also more secure. There are a few more advantages to using cryptocurrencies for cross-border transactions.
As bitcoin is the first cryptocurrency, many people try to use that for cross-border transactions but they end up having a lot of challenges. I think that we should be using cryptocurrencies that are cheap to transfer and very easy to implement. We shouldn't be using a cryptocurrency just because it is popular. That's what is happening with Bitcoin, just because it is very popular, people want everything done with Bitcoin and it becomes a failure.
Instant transaction and stability
With the help of cryptocurrencies, we can do transactions across the globe that can be nearly instant. For a SWIFT transfer, we have to wait for a few days and we have to also pay a lot of fees during the transfer. With the help of cryptocurrencies, it would be pretty much instant and we get a stable fund transfer. Currently, inside the country, the transactions have become faster and the transfer of funds happens pretty much instantly. With the help of these cross-border capabilities or integration with cryptocurrencies, soon the transactions overseas should also be pretty much instant. The only concern is the middle man but it will be great if we can do this without the middleman. But the technology is promising making it fast enough.
Global maturity and regulatory concerns
One of the biggest challenges we have currently is that cryptocurrencies are not globally mature enough. The adoption is very little. Many people still don't know what cryptocurrencies are and they fail to understand the difference between Bitcoin and other cryptocurrencies. They usually think it is all Bitcoin. We need to have a basic understanding of cryptocurrencies globally. That will only pave the way to adoption and common usage. When this is done, the next biggest thing would be to have some regulations around cryptocurrencies. There should also be some global regulation so that people can still use this technology and abide by those regulations. This way things can be faster to do cross-border transactions and at the same time they are fully regulated as well. This creates an additional layer of security where illegal transactions can be prevented.
Cost-effective solution
This is the next biggest feature we have with cryptocurrency cross-border transactions. The methods are cost-effective because with FIAT transfers we have to pay a lot of money as fees even the transfer itself would cost a lot of money. With the help of cryptocurrenices, there is also a possibility where we can even make it a free transaction. If we use Hive for cross-border transactions, the transfers are free. There are also other blockchains available that have relatively low costs for transactions.
For all these things to happen, cryptocurrency adoption is very important. When we have more sellers we will also need a lot of buyers and if there is a decentralized exchange available that can facilitate this, it will be a great thing. This is currently the biggest problem and there are also regulatory concerns if we do a peer-to-peer transaction. In some countries dealing anything with cryptocurrencies also incurs a heavy tax of up to 30 percent. Not all countries are crypto-friendly.
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