Top crypto exchange Binance believes that blockchain technology is poised to overhaul global payment systems, according to a report. The network believes that blockchain technology will transform the global payments landscape by addressing inefficiencies in traditional financial systems.
“Despite being one of the largest, fastest-growing global sectors, the payments industry still largely runs on outdated, 50-year-old bank-tethered infrastructure,” Joshua Wang of Binance writes. “Blockchain technology offers a new set of globally-enabled infrastructure rails for payments, built from the ground up.”
Around the world, blockchain technology is gaining prominence in daily finance. More countries are turning to online tech to make cross-border transactions quicker and easier. Crypto investors work predominantly on blockchains to keep transactions safe, private, and secure. Binance doesn’t see the technology slowing down any time soon, with near-instant settlements and transactions becoming increasingly important.
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Blockchain Technology to Aid Global Transactions in the Future
Binance’s report also highlighted some of the cost advantages of blockchain payments. Traditional remittance services charge high fees, particularly in regions like Sub-Saharan Africa. There, the average cost of sending money is 7.73%. Using blockchain for payments is becoming increasingly popular due to its significantly lower costs compared to traditional methods.
One essential piece of blockchain technology is the stablecoin. The stablecoin market has grown steadily, with a combined market cap of over $160 billion. Stablecoins are pegged to fiat currencies and are a vital part of the handling of cross-border transactions. The BRICS alliance has also worked to implement stablecoins and blockchain technology in its quest for de-dollarization.
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“Blockchains, in essence, offer a new, decentralized medium via which payments can take place more seamlessly on a global scale,” the Binance report closes. “As the modern payments industry continues to experiment with this new technology and integrate it into parts of the overarching global payments system, the end goal we should always keep in mind is that of creating a world where there exists cheaper, faster, and more efficient freedom of money for everyone.”