Crypto could solve cross-border remittance issues

Stripe CEO believes cryptocurrencies could solve the problems of low demand for cross-border remittances three years after the company stopped processing Bitcoin transactions.

The president and co-founder of payment processing firm Stripe, John Collison, has revealed that the company is very enthusiastic about Bitcoin. This comes three years after the payment processor suspended Bitcoin transactions on its platform.

Collison revealed this during an interview with Bloomberg TV yesterday. He was asked if Stripe is thinking of changing its earlier decision to discontinue Bitcoin transaction support on its platform.

Collison said, “If you think of the kind of world that crypto people and we are trying to bring about, I think it’s a very related set of goals.” The payment processor suspended Bitcoin transactions in 2018 but could be looking to resume operations soon.

The co-founder said cryptocurrencies could be the answer to the current cross-border remittance problems. He pointed out that at the moment, only 22% of global commerce occurred via cross-border transactions. Collison believes there is still a long way to go before the commerce that occurs with cross-border transactions is scaled alongside the huge demand.

The Stripe co-founder is confident cryptocurrency is an exciting solution to this problem. “We are stuck down at this level where only a fifth of interactions is cross-border. Crypto is one very exciting direction for trying to solve that,” he added.

Cryptocurrencies make it easier to send money to people in various parts of the world. Unlike the traditional financial systems, cryptocurrencies don’t require intermediaries to handle cross-border transactions. Also, crypto transactions are faster, cheaper and easier compared to the traditional financial systems.

Cryptocurrencies also ensure that people living in the unbanked and underbanked regions of the world gain access to financial services with ease and comfort.

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