Although it has been adopted by many multinationals, blockchain is among the least understood forms of modern payment technology.
Accurate information about the risks and benefits of adopting blockchain can be difficult to find among the wealth of myths circulating online and in the media. and myths about the technology abound online and in the media. Some of these more prevalent myths include:
Blockchain will never be regulated and is therefore bad choice for basing a cross-border payments strategy
Blockchain technology providers and legislative bodies around the world are discussing how to regulatory blockchain in a way that support business growth while creating official guidelines for the industry.
Setting up blockchain technology for cross-border payments is too complicated an undertaking for startups
Enterprise-grade blockchain services provided by financial institutions (FIs) or FinTechs can offer comprehensive end-to-end solutions that let companies of any size implement secure and compliant blockchain-based payment systems.
Blockchain makes companies more vulnerable to data breaches
Just as with other payment methods, blockchain solutions managed by reputable, experienced FIs or FinTechs will use multiple layers of security to guard their clients’ information and transactions.
A stablecoin issuer may work with a bank verification service to ease and accelerate automated clearing house (ACH) bank verification while maintaining compliance. Anyone looking for an arrangement like this in action need only look to the collaboration between Circle and Plaid.
Blockchain is just for big companies
Blockchain technology can make it easier for smaller companies to scale when developing cross-border business.
Like any business tool, blockchain is most effective when an organization can easily integrate it into its existing growth strategy as a “plug-and-play” solution. Honing in on the most compatible solution, however, first requires discovering and addressing what hinders blockchain adoption
To learn more about the benefits of blockchain, download PYMNTS’ new Cryptocurrency, Blockchain And Cross-Border Payments playbook, a Circle collaboration.
NEW PYMNTS DATA: 70% OF BNPL USERS WOULD USE BANK INSTALLMENT OPTIONS, IF AVAILABLE
About: Seventy percent of BNPL users say they’d rather use installment plans offered by their banks — if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments And FIs’ Untapped Opportunity, surveyed more than 2,200 U.S. consumers to better understand how consumers view banks as BNPL providers in a sea of BNPL pure-plays.