The use of cryptocurrencies in international trade

In a world in constant and permanent evolution, where digitization and technological progress are undeniably the watchwords, crypto-currencies constitute a milestone in the history of money. Mainly known until now as investment instruments, virtual currencies are seen by some as the future currency of international trade. The world is increasingly decentralized, which is why cryptocurrencies are growing in popularity to fill the gap. Cryptocurrencies are not regulated by banks and every transaction involving them is known by the community. They are also highly resistant to any hacking attempts, making them relatively safe to use as a transaction tool in the future. Today there are many cryptocurrencies issued and individuals are given more freedom to create their own crypto tokens.

Crypto-currencies: presentation and advantages

Crypto-currencies – of which Bitcoin is certainly the most famous – are actually a sub-category of a larger set of crypto-assets, digital assets using an information network and based on the blockchain technology. Their purpose is to enable transactions to take place. A decentralized form of money, these crypto-assets are gaining increasing weight in the international financial system because of the advantages they present.

Cryptocurrencies promise a simplification of payments and, as such, they would further contribute to the strengthening of the internationalization of trade. Using these crypto-assets can make transactions simple and fast. Cryptocurrencies also have the potential to significantly divide the costs of financial transactions, thereby generating savings for users. Indeed, the fees associated with cryptocurrency transactions are significantly lower than the fees traditionally applicable to banks. Finally, crypto-currencies are not subject to the control of banks or states and, to put it another way, no administrative system (whatever it may be) is involved in the transactions. Cryptocurrencies would also guarantee better security for the holders of these virtual currencies as well as greater security for the transactions themselves.

Platforms such as “Overstock” and “Shopify” already accept payments made in certain cryptocurrencies. PayPal has also declared in a press release its intention to join the cryptocurrency market. All this therefore makes it possible to envisage a significant development in the use of virtual currencies. 

Today crypto currency trading like stock trading and forex is also getting more and more popular. Day by day more and more people are getting involved and the need for various trading tools is also increasing rapidly, including crypto trading applications like the famous Bitcoin Prime. These apps are very helpful for beginners who are confused when they first enter a trade.

In practice, what legal framework?

If virtual currencies have certain advantages, they also constitute, in particular because of their volatility, a challenge in terms of user protection, taxation, cybersecurity, or even money laundering. In the case of Europe, since not all crypto-assets fall within the definition of financial instruments within the meaning of the MiFID Directive, a certain number of them are not governed by European legislation on financial services. The European Union wants to impose a stricter legal framework. In this respect, the European Commission, for example, tabled a proposal for a regulation to this effect last year (“MiCA regulation”). Some European countries are not left out since, pending European regulation, they have already approved a draft law dated last year in this area. Broadly speaking, regulations have been made in many countries, not limited to North America and Europe.

Initially seen as speculative investments or means of payment aimed at hiding the existence of financial transactions, cryptocurrencies are increasingly seen as means of payment in their own right. With the regulatory movement underway, cryptocurrencies could soon be used in a much more global way and redefine the means of payment in commercial exchanges.

Latest

What You Need For Your Perfect Collage Dorm Party

Collage Dorm Partyworms can’t highlight your notes in class, make you feel cozy in your dorm room, or help you study for that big exam coming up.

Binance customers face extensive sterling withdrawal outage

Binance customers endured a lengthy period in which they were unable to withdraw sterling, marking a significant outage for the crypto exchange that...

Elden Ring, Horizon Forbidden West have turned February into a game release bonanza

That last game, in particular, points to a broader change in how video games are bought and sold. In recent years, the video...

How to Store a Stroller in the Garage | Convincing Approaches

If we're contemplating installing a Store Stroller in the Garage "location" is likely to be the first thing that comes to mind. It should be simple to get into and clean.