Cryptocurrencies and international payments
The virtual industry demonstrates not only sustainable development but also continues to penetrate all spheres of modern life. Even everyday services and goods can be paid for with electronic money. Virtual assets have long been involved in financial transactions between entrepreneurs from different countries.
Possibilities of using cryptocurrencies for international payments
In the modern world, virtual money has become an integral part of the financial system. The legal environment regulates the status of e-finance, the operation of crypto exchanges, taxation, and the ability to pay for goods and services with crypto. The economic approach to government regulation should include the integration of cryptocurrency payment systems into business processes.
In Ukraine, cryptocurrency is not considered a means of payment, but transactions with cryptocurrency are not prohibited. Also, individual entrepreneurs on the single tax system of groups I-III have the right to use coins to pay for goods and services. International payments in cryptocurrencies are regulated by a special law.
Taxation is imposed only on profits earned from cryptocurrency transactions, as crypto in Ukraine is an object of intellectual property. In other words, legislators have envisaged the possibility of using cryptocurrencies for international payments, but have not yet fully proven the use of crypto in business. In other countries, cryptocurrency has long been legalized as a means of payment between companies located in different jurisdictions.
Examples of companies using cryptocurrencies for international payments
The rapid development of the crypto industry has led to the rapid spread of this alternative to fiat currencies. Around the world, many companies are already switching to digital assets to pay for goods and services. In the American Starbucks chain, visitors have the opportunity to buy a cup of coffee for bitcoins.
In addition to catering establishments, crypto has also reached educational institutions. First, the University of Nicosia in Cyprus started using virtual money, and then universities in the United States and the United Kingdom adopted such innovations. But these organizations are not the only ones that widely use a replacement for conventional currencies:
- Amazon. The well-known trading platform offers to download the Purse.io app and buy necessary goods for bitcoins.
- Wikipedia. The world's largest educational project accepts donations in cryptocurrency.
- Coca-Cola. The widespread soft drink brand has started accepting bitcoin as an official means of payment.
- Xiaomi. Smartphones of the famous Chinese brand can now be purchased for virtual coins.
- PayPal. The popular e-wallet provides the possibility to pay with crypto.
As you can see, examples of companies that use cryptocurrencies for international payments include many different structures of various profiles.
Comparison of cryptocurrency and traditional payment systems
Payment with fiat currencies is made by sending a certain amount of cash or to a card account to the supplier of goods or services. This process involves banks, payment systems, and other processing systems. In case of failures, funds may be lost.
Proponents of virtual currency draw the attention of their opponents to the ease of using crypto. Payment does not require intermediary structures, as the transfer takes place from one crypto wallet account to another. Another option is to scan a QR code provided by the recipient. To compare cryptocurrency and traditional payment systems, you can make payments using both methods. The first method is safer because it is protected by cryptography.
Risks and benefits of using cryptocurrencies for international payments
The main advantages of using digital coins to pay for goods and services in financial relations between parties from different countries are:
- security of operations;
- confidentiality of transfers;
- low fees;
- absence of intermediaries;
- checking account status.
- But despite these features, you can still lose your crypto assets, as criminals have come up with many ways to steal them. Such methods are based on schemes to lure out personal information and user gullibility.
As you can see, there are risks and benefits of using cryptocurrencies for international payments, but this does not prevent the popularity of crypto from growing among the general population. That is why this area will have broad prospects for further development in all spheres of life.
The future of cryptocurrency international payments
There is no unanimous opinion on the prospects for the development of electronic funds. Proponents point to a "bright" future for cryptocurrency international payments, which will displace traditional currencies from circulation. Skeptics consider crypto to be another lottery-like bubble. But the fact that the demand for virtual currency is growing is a fact that affects a large number of processes.