You’re probably warming up to the Bitcoin idea if you run an international business. Investors around the world want to buy and hold onto their Bitcoins. This primary virtual currency has hit the news headlines in recent years after hitting an all-time-high market price. What’s more, early adopters earned significant profits from their Bitcoin sales after its recent price increase. Today, many countries have Bitcoin millionaires whose stories inspire others to invest in this digital currency.
But some people see Bitcoin as the future global currency. Thus, Bitcoin is an investment tool and an exchange medium suitable for cross-border transactions. However, Bitcoin operates differently from fiat money. With this virtual currency, international traders don’t require intermediaries like banks. What’s more, no central bank or government regulates it.
Such attributes have made some people argue that Bitcoin could change how people trade internationally. Today, business owners can pay suppliers and distributors from anywhere, anytime. Being a peer-to-peer payment method makes transactions more efficient and cheaper. And you don’t have a limit for the amount you can pay with Bitcoin as long as you have sufficient funds in your crypto wallet. Here are more reasons to use Bitcoin for international business.
Improved Efficiency for International Payments
With conventional payment methods, payment settlements take one to five business days. What’s more, traditional payments require human intervention in verifying the recipient and sender’s information. And this verification is vital for combating terrorism and anti-money laundering purposes.
Consequently, payment speed depends on the instances the receiving and sending institutions overlap. Whether the receiving and sending institutions depend on similar messaging standards influences the efficiency of traditional payments.
Bitcoin depends on a decentralized ledger or blockchain. Therefore, people send and receive funds faster. Currently, people can receive international Bitcoin payments almost instantly. However, compliance requirements for digital currencies may affect this efficiency in the future.
No Need for Several Currency Accounts
Platforms like BitIQ enable users to seamlessly purchase or exchange Bitcoin and other virtual currencies. That means your international business doesn’t have to manage multiple currency accounts when sending and receiving payments in Bitcoin.
You only require one Bitcoin wallet for your business to receive and send Bitcoins to other users across the world. Bitcoin payments are secure, confidential, and fast. Therefore, using Bitcoin for international business reduces cash flow risk due to quick settlement. Also, you minimize credit card risk because the paying entity must have funds in their wallet to pay with Bitcoin. Also, Bitcoin transaction fees are lower than cash or other conventional payment methods.
Simplified and Streamlined FX Management
If your business operates in several regions, Bitcoin might simplify and streamline FX management. Also, using Bitcoin might attract enterprises that work in countries with local currency volatility. That’s because holding currency balances in universal settlement currencies like Bitcoin helps protect a business from sudden and adverse local currency movements.
Bitcoin is a growing digital currency with more businesses accepting it. Overall, cryptocurrencies are snowballing with a market valued at over $2 trillion. El Salvador was the first country to make Bitcoin a legal tender in 2021. What’s more, Bitcoin’s value has increased since its inception despite its wild price swings.
Taking and holding Bitcoins in your business wallet could earn you significant profits when you eventually sell the tokens once the price increases. Thus, accepting Bitcoin payments for international business could bring additional earnings to your enterprise.
Technological innovations have always shaped international trade. Blockchain and Bitcoin present innovations that could be the next game-changer for global business. If the above reasons convince you, embrace this virtual currency in your international business today.