The pandemic disclosed all the weak points of the traditional economic system and started a range of essential changes. CBDCs are among the initiatives claimed to solve the existing problems of fiat currencies. China is the pioneer in this way, testing the digital Yuan in different sectors. Turkey, Japan, Switzerland, and several other countries are close to getting their own CBDCs, as the efforts are in the final phase.
Centralized digital currencies provided crypto-skeptics with more fuel to continue criticizing digital assets. Furthermore, skeptics are convinced that crypto-payments lose their potential with upcoming CBDCs. In fact, such a statement is far from the truth.
What are digital currencies CBDCs?
A CBDC is an abbreviation from Central Bank Digital Currency. In other words, this abbreviation means a fiat currency issued in digital form and totally controlled by the local central bank. According to financial experts, CBDCs are going to jump online payment to a new level, solving the following problems:
- Centralized digital currencies may increase the transaction speed, making it possible to transfer money within seconds.
- CBDCs are more secure than traditional fiat money. Launched on the blockchain, these currencies can hardly become the subject of fraud.
- Central banks are going to serve as payment providers, excluding the involvement of third parties; this is why lower fees are expected.
The herein mentioned pros move the economic system forward, but CBDCs do not remove all the troubles and headaches related to online payments.
Why should merchants still accept crypto payments?
Crypto payments solve the following essential problems:
- More than 2 billion people around the world are underbanked. They have no access to banking services, and CBDCs don’t solve this problem as well. The same people just need a smartphone and Internet access to open a crypto wallet and use digital currencies to pay for goods and services.
- Most countries set limits for transactions, while crypto payments have no limits. A person may transfer as many coins as he (she) wants. As of today, the largest crypto transaction (161 500 BTC) equals $7.59 billion.
- Crypto transactions protect a merchant, as consumers cannot cancel those transactions after they’ve confirmed the action.
- Fees for crypto-payments are minimum, and this factor is equally important for both consumers and merchants. For instance, reliable providers charge as little as 0.5% for payment processing.
What’s even more important, crypto payments reflect CBDCs’ benefits as well, as transactions are exceptionally fast and secure.
Are crypto payments complicated for a business owner?
When a merchant wants to accept Bitcoin payments as well as other cryptocurrencies, the whole process should be mastered by a reliable provider of crypto payments. In this case, business owners get their websites connected to an API that redirects customers’ requests to a payment provider. As such, merchants themselves face no headaches.
B2BinPay leads the market of crypto payment providers, as merchants get a secure wallet and an opportunity to get fiat currencies to their bank accounts. As for the fees, a 0.5% commission is among the lowest in the market.