In a world continuously pushing for complete security when it comes to financial transactions, cryptocurrencies may seem like the perfect tool.
After all, cryptocurrencies are digital assets that require no supervision from a governing body to be transferred to another owner. Cryptocurrencies cut out the middleman in transactions by making sure that the transfer goes through from one owner to another, without having to pass through the regulatory eyes of a financial service or institution.
Many supporters are vouching for its security, saying that the complete anonymity that cryptocurrency transactions provide is perfect for those who are worried about giving away personal information whenever they transact with someone online.
Cryptocurrency in business
At the same time, cryptocurrency can also play a big role in any business.
Transacting in cryptocurrency assures customers that all their purchases will be private and will not be tracked in any way. As mentioned above, cryptocurrency cuts out the middleman in all transactions, making sure that the money makes its way straight to the business from the customer’s wallet. This also effectively reduces the costs from fund transfer fees imposed by all financial services.
This doesn’t mean that cryptocurrency isn’t without problems. Setting up a cryptocurrency payment option can be a hassle for businesses, in addition to adjusting some operations in the company to make way for the inclusion of cryptocurrency.
Why banks don’t accept cryptocurrency
The issues of cryptocurrency in business don’t end there. Unfortunately for those who are interested in using cryptocurrency in their business, many financial institutions, such as banks, aren’t open to the idea of using digital currency for most legitimate financial transactions.
There are many reasons for this, but one of the main reasons is the decentralization of cryptocurrency. The thing that many consumers like about crypto is the very thing that banks dislike about it.
Being decentralized means that cryptocurrency threatens the foundations that banks stand on. Banks earn money from people depositing money in their accounts and using those to purchase things that they desire. Cryptocurrency takes banks out of the picture and allows consumers to transact directly with businesses offering those things.
Another reason is the volatility of cryptocurrency. Unlike traditional currency or even traditional assets, cryptocurrency is extremely volatile, with its value changing almost every second. This extreme volatility makes banks averse to accepting them as legitimate.
Dealing with barriers
If you really want to use cryptocurrency in your business, you have to find a way to deal with all the barriers getting in your way.
Finding alternatives to traditional banks
Thankfully for aspiring crypto start-ups, many established crypto businesses have already found creative ways to overcome this problem. Some have turned to using crypto-specific services while others have even gone far enough to completely forgo the usage of fiat currency.
Examples of services that accept digital assets like cryptocurrency include Transpaygo, ConnectPay, SendFriend and MisterTango. 2019 seems like a good year for crypto, as tech news sites are reporting that over 200 banks all over the world will be starting the use of RippleNet this year. This adds more options for businesses interested in using cryptocurrency.
Transferring to crypto-friendly areas
If you really want to use bank services in addition to using cryptocurrency in your business, you may want to consider transferring to a crypto-friendly area.
There are many places around the world that are open to cryptocurrency. Some regions, like Malta, Switzerland, and Lithuania allow crypto businesses to open bank accounts with their financial institutions. Germany and France also allow crypto businesses to open accounts with them, however there may be other difficulties to be faced especially in terms of legal regulations.
Learning to cooperate with banks
Although your local banks may not be open to the idea of businesses using cryptocurrency, you shouldn’t cross them out of the list just yet.
Try to show up at the bank in person in order to clarify their rules and regulations in opening accounts, in addition to providing all the necessary documents. Learn to smile and talk politely but pleasantly, and explain your side if you have to. Cooperating nicely with the bank might just improve your chances of opening an account for your business.
Dealing with barriers is inevitable when you’re working with cryptocurrency since it’s still quite uncommon even in today’s world. Learning how to find alternatives is a must, as well as learning how to cooperate with people of authority. Sometimes, you may even need to transfer to an entirely new jurisdiction. Unless you want to get left behind by your competitors who have already adopted crypto, all these are necessary to modernize your own business.
