Is there anything wrong with cross-border payments today?

Mar 08 - 2022

Is there anything wrong with cross-border payments today?

Cross-border payments using traditional methods are known to involve fees and even face hurdles and delays. Every year, users spend billions of dollars on personal money transfer services that enable business transfers. Corporate development of multinational companies can choose to bear these foreign exchange management costs, online omnichannel payment,or to pass the costs on to customers. Businesses on both sides of the transaction must wait for days or weeks to better complete the transfer transaction. On top of that, cross-border remittances that can be made through traditional Chinese teaching methods are fraught with restrictions.

part of the problem is the "non-interoperability" of the money transfer system. Without the support of blockchain technology, sending money to all corners of the world will have great resistance. For decades, entire management systems have been haphazardly woven into life to enable financial interoperability among the development of financial services institutions, correspondent corporate banks and remittance operators along the enterprise value chain. Friction is unavoidable in connecting these fragmented financial systems (especially those markets that are underserved by financial services), especially those whose local currencies are not involved in global transactions - which results in every link in the financial chain There are long delays and high transaction costs.

global public network

Blockchain technology shows that we can connect financial infrastructure. Therefore, blockchain technology can help you achieve interoperability of your assets, no matter where you are, what kind of financial system and asset form will limit you.

Star Coin is a global public blockchain project designed to enable interoperability and further promote financial accessibility and system inclusivity. Stellar has a global network of more than 20 anchors that are integral to connecting the global financial system. These anchors are regulated financial institutions, money service businesses, or financial technology companies that issue 1:1 fiat-backed tokens (also known as stablecoins) or/and provide value-adjusted tokens based on the price of the fiat coin. Star's goal is to open markets for new remittances and payments, such as financial transactions between Europe and Nigeria, the largest remittance market in sub-Saharan Africa.

By:nicole