- Cheaper cross-border transactions
- Attracting investment and developing new business models
- Surviving an economic crisis
One of the key advantages of blockchain-based cryptocurrencies is their ability to promote financial inclusion in developing and sanctioned countries. Unlike traditional financial systems, crypto helps make financial services accessible across all sections of society. This is especially important for people who do not have access to bank accounts and loan services. Crypto also plays an important role in tackling financial inequality. By using digital money, people without access to traditional financial services can use financial tools and unlock economic opportunities.
What other advantages does crypto have over traditional banking?
Cheaper cross-border transactions
Traditional cross-border payment systems are usually associated with high fees and low transaction speeds. Crypto, on the other hand, makes transactions faster and cheaper, being a perfect tool for cross-border payments. As a result, entrepreneurs and businesses can benefit from lower cross-border fees for international transactions and improve their efficiency.
Fast and cheap transactions also improve international trade conditions. Crypto makes cross-border payments easier, eliminating the need for intermediaries and reducing fees. This simplifies international transactions and promotes global economic development.
Crypto provides small and medium-sized businesses with access to international markets and helps them expand their export opportunities. This results in new jobs and increased household income. Crypto can also attract investment in developing countries, helping them develop a stronger modernized economy.
Attracting investment and developing new business models
It would be hard to overestimate the role of crypto in attracting investment and developing new business models. First, digital money promotes a favorable investment climate that attracts both local and foreign investors. Thanks to blockchain technology, crypto ensures the transparency and security of transactions, which increases investor confidence and encourages capital inflows.
Second, crypto opens up new opportunities for startups and innovation. Entrepreneurs can raise capital for their projects through an ICO (Initial Coin Offering) or an STO (Security Token Offering). This allows startups to quickly raise the funds required for developing their project and attract the attention of investors from around the world.
Moreover, crypto gives rise to new blockchain-based business models. For example, smart contracts can be used to automate and simplify processes across various industries, including logistics, finance, real estate, etc. This reduces business costs and improves efficiency.
Surviving an economic crisis
Crypto can ensure stability during an economic crisis. A financial turmoil often jeopardizes the traditional financial systems. In such situations, digital money can serve as an alternative means of exchange and store of value. Being decentralized and independent of government authorities, crypto can become a source of stability and security in times of economic chaos. Despite their high volatility, cryptocurrencies such as ether and bitcoin are still more reliable than fiat money in times of high inflation. Notably, they do not depend on any government, and it is difficult to restrict their use.
Crypto can contribute to economic development and reduce the risk of crises. The use of blockchain technology ensures that transactions are transparent and secure, reducing the risks of fraud and corruption. Finally, by providing access to fast and cheap transactions, crypto can contribute to the development of small and medium-sized businesses, which is an important factor in economic growth.
