Trends in Technology
Digital currencies are a revolutionary technology that allows people and businesses to make digital payments and transfer funds instantly. Digital money can potentially expand international commerce, support financial institutions, and improve businesses. The Coronavirus pandemic has changed how we live and put businesses in survival mode.
To survive, humans have done what they do best — adapt. It’s time SMEs transform their operations following developing consumer and business trends for 2021 and beyond.
In this post, we’ll talk about the benefits of digital money and the top 7 digital currencies for businesses today.
The Benefits of Digital Currencies for Businesses
Businesses can use digital currencies as payment methods for their operations and market offerings the way fiat money like the US dollar and European Euro are used. In a digitally-evolving world, adopting cryptocurrency for business is the way to move forward.
Here are the top 5 benefits of digital currencies for businesses:
1. Faster and Cheaper Bank Transfers
International banks can take up to a week to transfer funds as the process involves correspondent banks and country-specific clearance. Conventional currencies have international rates, but digital money does not. Using a digital currency can make bank transfers instant, cheap, and safe.
2. Digital Currencies Boost Global Remittances
Every year, migrants who own businesses send home billions of dollars in remittances. With international transfer charges averaging 6% to 10%, many expats lose hard-earned money. Digital currencies have the potential to help these transfers become cheaper. Instead of relying on banks and financial institutions, expats can send money directly via their phone.
3. Convenient Cashout
As businesses receive digital payments, they can conveniently withdraw them from dedicated ATMs. This means they can convert them into cash in no time. This is useful for vendors that use multiple payment methods in daily operations. For example, if you have suppliers that don’t support cryptopayments, you can pay cash or transfer money to your account from your digital wallet.
4. Instant Digital Money
Businesses can transfer digital money into their accounts to make online purchases and even pay for office equipment and utilities. The best thing about this is that the transfers are instantaneous. Moreover, businesses can use this currency to pay employee salaries as well.
5. Optimized eCommerce Operations
eCommerce is the future of online shopping, not just for small businesses but also for large enterprises like Amazon. Hence, it’s only logical to use digital currencies already present in the digital space. Digital money could also allow small businesses in developing countries to engage more in global eCommerce. For example, Chinese teachers could offer Mandarin lessons over Skype, and Latin-American vendors could sell hand-crafted goods globally.
The Top Digital Currencies for Businesses Worldwide
Now that you are aware of the benefits of digital currencies, the next step is to choose a reputable platform to get started and then optimize network security for protection against hackers. Below are the top 7 digital currencies that can improve your business:
1. Etherium (ETH)
After Bitcoin, Etherium is one of the most popular cryptocurrencies. The platform runs using its cryptographic token called Ether. Companies like JP Morgan, Amazon, and Microsoft Azure are only aboard, and small businesses can set up their private Blockchain.
2. Ripple (XRP)
Ripple is a payment protocol network that offers international exchange and affordable payments. It is ideal for a business with customers in different countries. The company has partnered with multiple money transfer giants like MoneyGram and SendFriend just to name a few.
3. Bitcoin Cash (BCH)
Bitcoin Cash is a digital currency that is a hard fork of bitcoin. It succeeded in the industry due to its greater block size (8MB) compared to Bitcoin’s 1MB. The main purpose of Bitcoin Cash is to serve as an online payment system for businesses to exchange multiple transactions instantly.
4. Litecoin (LTC)
Litecoin is among the oldest digital currencies. It is an open-source, peer-to-peer software that allows businesses to trade worldwide. With this platform, small businesses benefit from decentralized commerce to transfer money without intermediaries, resulting in lower fees and quicker transfers.
5. Tether (USDT)
Tether is one of the more stable coins in the digital currency world. With smoother fluctuations in exchange values, the platform is becoming one of the most go-to options for businesses. Most forecasts indicate that it will offer a good return in 3 to 5 years, making it a great long-term investment for businesses looking to expand.
6. Monero (XMR)
Most platforms have a unique selling proposition for different types of businesses and customers. Monero is popular for its high level of security because it focuses on fungibility, privacy, and decentralization. Hence, any business or individual can exchange digital payments without outside observers.
7. Libra (LIBRA)
Libra is the latest emerging digital currency set to hit the market. It is a product of Facebook and aims to introduce Libra Coins backed by a reserve of cash or cash equivalent assets. For businesses that heavily rely on Facebook for business, they need to adopt this digital currency once it comes out.
Digital Currencies are the Future of SMEs
The world is still adapting to COVID-19 times, and businesses should start considering digital currencies as payment modes for their products and services. As we’ve seen above, digital money offers many benefits for both consumers and businesses. More importantly, as eCommerce grows, more vendors will need a digital platform for exchange while selling their products and services.
With 2021 just around the corner, it’s time to prepare your business for the future. If you need more information and advice specific to your business use case, get in touch with Percento Technologies today.