Jason Simon explains the role cryptocurrency plays in foreign trade

The rise of cryptocurrencies looks unstoppable, and the world’s financial systems are in the preamble of a probable turnaround. Digital money is becoming a reality that will be part of our lives in not so many years. Jason Simon, a crypto specialist, provides detailed information on how the crypto space is having a major impact on foreign trade.

Today, countries like El Salvador are thinking about bitcoinization, Brazil is studying the creation of the digital Real and China is looking to implement digital Yuan. Globally, transactions may become instantaneous, displacing the current Swift system. It remains to be seen how states will behave.

It is important to understand what implications this revolution has on foreign trade. “The central point is the absence of commission for currency transfers. In any type of transaction with a digital currency, we will be able to make it directly to our receiver thanks to the peer-to-peer system,” Simon states.

Since it is not done through banks, there is almost no transfer fee; in addition to the fact that no intermediary is needed so, it makes it easier to carry out any movement. This has caused a great impact within the world economy in competition with traditional currencies and the established system.

“This is going to replace the current currency. It will be possible to do everything with any cryptocurrency; it will not even be necessary to have a debit card,” highlights Simon, adding that, to buy a cryptocurrency, the user will only have to create an eWallet with a public and a private key.

Blockchain-based eWallet applications to manage transactions have built-in easy-to-cash tools; they also allow withdrawing and sending money using any ATM network or mobile app.

Blockchain technology is specifically designed to drastically reduce transaction fee costs. Communication channels for cross-border currency remittances based on digital asset trading are the new landscape.

“Just as some people take refuge in gold or oil, cryptocurrencies are a good shelter from storms and crises. They appeared precisely when the 2008 financial crisis broke out,” Simon says.

Amid this boom, the challenge for governments is to see how money laundering can be avoided since by bypassing the banking system, capital from illicit activities can be legitimized.

At the same time, eCommerce has also taken a 180-degree turn. Cryptocurrencies and eCommerce have been baptized as the ‘dynamic duo of the Internet,’ and no wonder. In recent years it has become very clear that eCommerce is not only the present but may also be the future. The ease of searching for products and purchasing them from home with a single click is a huge benefit. However, the websites of these stores are acquiring a new variable in their payment methods through digital currencies.

These digital media use strong cryptography to secure transactions, control and verify the transfer of assets. In this way, cryptocurrencies have become a safe alternative to traditional money. So much so that “some studies suggest that 50% of the world economy by 2025-2027 will be covered by digital currencies, which further emphasizes their importance for the future of commercial transactions,” asserts Simon.

Digital currencies and eCommerce have one thing in common in that they are critical to the future. That is why there is a growing synergy that is visible in the organizations that are already embracing cryptocurrencies as a form of payment. Although the process is slow, more and more companies are opting for the advantages of blockchain technology to develop solutions based on this type of commerce.

The impact of bitcoin on eCommerce has been significant. It has opened up a new way of making transactions and purchases with a single universal value. In short, cryptocurrencies have become just another part of the eCommerce process.

“This initiative is surpassing the expectations of users in terms of confidentiality, security, and guarantee in the treatment of data in the online universe,” Simon explains. “Thus, we can affirm that today it is possible to pay with cryptocurrencies in eCommerce.”

Digital currencies are already becoming popular as a payment method. This is evidenced by large companies, such as Amazon, that are investing time and money in adapting their eCommerce platforms to allow payment with these currencies.