- Merchants who support crypto are receiving more cross-border sales.
- Blockchain-based payments are often faster and cheaper than traditional methods like bank transfers or credit cards.
Blockchain technology in commerce has the potential to improve cross-border sales by providing a decentralized, secure way to track and record transactions. This would create transparency and trust between buyers and sellers and reduce transaction costs. An analysis from CryptoMonday.de shows that crypto payments are still relevant amid the crypto winter. In fact, 77% of businesses that accept cryptos payments reported a rise in international sales.
Commenting on the analysis, CryptoMonday's CEO Jonathan Merry said
Cross-border crypto payments are increasingly becoming popular among businesses as they provide a hassle-free way to receive payments from international clients. The trend is likely to continue as more businesses wake up to the benefits of crypto payments.CryptoMonday CEO, Jonathan Merry
Blockchain in Trade
The use of blockchain technology in business is becoming more widespread as companies attempt to address the sourcing disruptions caused by the COVID-19 pandemic. By providing a straightforward and immutable record of transactions, blockchain can help to ensure compliance with cross-border regulations and improve the efficiency of supply chain management.
Walmart is utilizing blockchain to create a more automated process for handling invoices and payments from its 70 third-party freight carriers. To ensure the safety of their products, Walmart has sent letters to their suppliers of farmed goods, urging them to begin tracking produce using blockchain technology.
IBM is also working with Maersk to create a digital shipping platform that will use blockchain to manage the paperwork required for international shipping. The platform will be used by more than 20 shipping lines, ports, and customs authorities.
Alibaba's cross-border e-commerce platform, AliExpress, uses blockchain to verify the authenticity of products and track them through the supply chain. More than 150,000 suppliers use the AliExpress platform from over 200 countries and regions.
Improving Cross-Border Trade
Since its launch as a mysterious phenomenon, cryptos have become a far more widely used medium of exchange and method of payment. Bitcoin and Ethereum are at the forefront, and most people easily accept them for payments.
The cross-border boom in trade catalyzed by digital assets indicates how the world is enthusiastic about crypto. Besides, some countries are making it a legal tender to improve international trade. The Central Africa Republic and El Salvador are among the countries that have mainstreamed crypto.
President Biden has also signed an executive order setting forth goals for creating digital assets. He requested departments to provide recommendations on cryptos for future action.
The world is changing, and so is the way we do business. The traditional banking system is no longer as efficient as it used to be, and blockchain-based payments are becoming more popular.
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