Crypto Cross Border Payments - Adding The Next Trillions In Business Growth
A lot of people underestimate cryptocurrency simply because it's not a regulated piece of technology to which the government can just bend its reality to their wishes and in the process fail to see the solutions it brings to the table, even without stressing a muscle, crypto solved a huge business flaw(which I strongly believe was a by-design flaw aimed at giving authorities of nations easy control over economic activities) in the system.
This flaw has been designed to restrict the system of trade over the years and has cost traders trillions of dollars in export value. Of course, not a lot of people realize this but quite a handful have simply decided to stay limited by building business value in their limited ecosystem and letting the dreams to go global simply die.
The fact facilitating cross-national trades involves a lot of paperwork not even to simply move the goods but to simply move the value paying for these goods, so while on one end, a producer is losing export value, on another end, a sales company is losing import value due to this restrictions and of course, this majorly affects the small fishes in the sea, the deep pockets always get away with everything.
Lost Trillions For Goods and Services
What's the value of having a global network for your business? Well, there's a lot to it, take blockchains for an example, what's the entire concept of interoperability and the adoption of aggregation protocols? It's a narrow focus on tapping into major economies in the cryptocurrency ecosystem.
So the value of going global based on this blockchain illustration is that one or a business is able to build a broad band of value by tapping into diverse economies at once. The system limitations which really aren't limited to goods but also services have cost these traders and businessmen a handful of billions - potentially speculated to be trillions in lost value for their businesses. But how so?
The Value Of Cross Border Payments
Appears as though it were a very irrelevant piece in business developments but this little wall has blocked a hell lot of value from entering many economies, I mean, if we look at Africa specifically, it's quite easy to tell that given the stage at which advancements in tech is in the region, major global services will be limited, thus, many businesses within the continent is limited to trade or operate majorly in the four walls of its ecosystem just as businesses outside cannot easily tap in.
According to Statista, as per 2021 gathered statistics, the global trade value of goods exported throughout the world amounted to approximately 22.3 trillion U.S. dollars. Now, this number is quite impressive but if you look at the fact that throughout the globe, economies are frankly separately functioning, there aren't any jointed edges to its operations, thus, value isn't quite easily distributed or absurd across the business space. Beginning with the currency system, whereas a large percentage of the network of nation tenders are not accepted for business trades globally, thus the need to acquire stronger currencies like the US Dollars comes in, and here's where a lot of limitations come in for most businesses.
Although small-scale businesses are often underestimated, we're dealing with millions of businesses amongst billions of people, we are definitely losing trillions of dollars to the restrictive nature of global trades, the fact the system isn't interoperable makes it incredibly difficult to pass value across either monetary value or value as service or good. Lots of companies of different sectors have lost a handful of revenue because they cannot easily reach a global network of people and the people are frankly aware of just how limited the system is and frankly don't bother to initiate any financial contracts.
That said, crypto is bound to change this with near zero, low cost(sometimes feeless) and borderless transactions, powered by blockchain technology. The ease there is to move value across the world is giving lots of businesses, especially service providers who don't need to move physical products or receive any, that's to say, room for massive growth. These businesses are in a position to make the most out of their time in the market as global operations are a lot easier with these crypto-powered global communications systems which span through monetary benefits.
We are going to see economies grow exponentially with crypto powering major businesses and finance sectors.