Cross-border payments have been bridged, all thanks to cryptocurrency, as countries and companies are embracing the new digital currency.
Cross-border payments have been associated with traditional finance and banking systems, as this organisation has struggled for many years to provide solutions for swift payments across the world, especially in African countries like Nigeria, Ghana, Kenya, Uganda, and South Africa, highlighting the need for the use of cryptocurrency for everyday transactions.
The use of cryptocurrency across Africa for payment solutions has addressed many challenges that businesses, companies, and individuals who freelance or offer other skills face in payment and service settlement.
Adoption of cryptocurrency has eliminated complicated cross-border complexities, a 5-10% rate per transaction, a delay period of bank closures, or 2-5 working days before receiving funds, as these funds, when transferred from the US to South Africa using crypto, will be received within a few seconds, fast, cheap, reliable, and transparent on the blockchain.
Cryptocurrency faced rejection at its early stages, as many didn't understand how it worked, labelling it as too complex and difficult due to the technicalities associated with blockchain networks and ledgers.
However, crypto usage has become a go-to digital currency for cross-border payments and settlements over the last few years, as countries and companies have adopted its use.
Here are key reasons why crypto is favored over the use of local currency for cross-border payment and settlements locally, as it provides a key solution to traditional finance limitations:
While many shy away from adopting crypto for payments due to a sense of its complexity, using crypto assets for payments is actually straightforward. Here is a step-by-step guide on how to carry this out:
The use of cryptocurrency to send money to South Africa and across the world is becoming one of the most reliable means over the years, thanks to its simplicity, fast transactions, low fees, cross-border settlement for services, transparency, and, above all, its high convenience for everyone, including companies and businesses.
Which crypto app does South Africa use?
There are many crypto assets that are widely accepted in South Africa, which include Bitcoin, Solana, Ethereum, and XRP. Many crypto exchanges support crypto activities in South Africa.
Crypto wallets for payments, both decentralised wallets and centralised wallets on crypto exchanges, work well in South Africa.