Cryptocurrencies enhance cross-border payments

Cryptocurrencies are revolutionising cross-border payments by addressing inefficiencies, costs, and security challenges.

Cryptocurrencies, particularly stablecoins like USDT, offer a solution to the traditional hurdles of international money transfers, including high costs, time delays, and counterparty risks. 

Abel Seow, Director of Asia-Pacific Sales at BitGo, emphasised the unique advantage of digital assets in regions like APAC, where diverse currencies and varying levels of currency confidence complicate financial transactions.

"Cryptocurrencies...circumvent or mitigate some of these challenges," Seow explained, highlighting their ability to execute transfers "instantaneously, like a fraction of the cost and without having to take on counterparty risk."

However, the adoption of cryptocurrency payments is not without its challenges. Seow pointed out two main hurdles: implementing the necessary infrastructure and ensuring security. The management and daily usage of blockchain technology require a solid foundation, which BitGo aims to provide through its services. 

"We provide the infrastructure with the time that we have, with the global regulatory compliance that we have the technology that's provided," Seow stated, indicating the importance of a secure and reliable framework for businesses engaging with digital assets.

Technical barriers also exist at the protocol level, affecting the scalability of blockchain networks for widespread payment adoption. 

According to Seow, there's no "clear answer today as to which blockchain or which protocol" will dominate, suggesting a future where multiple blockchain networks coexist to serve various use cases, from payments to investments.

Seow also highlighted successful integrations of blockchain-based payment systems across various industries. BitGo's client base includes a broad spectrum of businesses, from World Banks to fintechs, all benefiting from the security and efficiency offered by blockchain technology. 

Notable examples include businesses embedding wallet functions to facilitate digital asset transfers and companies utilising stablecoins for B2B and B2C payments across Asia. These cases underscore the growing interest and adoption of blockchain for financial operations.