- The Ethereum co-founder adviced that cryptocurrency-based payments can be an “big boost” to international business or charity the ability to pay in other countries.
- 85% of the renowned companies use crypto payments
Ethereum co-founder Vitalik Buterin advices the advantage of using cryptocurrency to pay for transactions is frequently “underrated” compared to fiat which he says is due to the convenience of international transactions and the ability to make payments to charities as the most prominent examples.
Buterin posted the comments in an Twitter thread on August. 24 elaborating that it’s not only the ability to resist censorship, but also the ease of use which makes cryptocurrencies “superior” when it comes to international commerce as well as charity and ability to pay within countries.
The use of cryptocurrency in payments is growing worldwide. A study by the data platform PYMNTS called “Paying With Cryptocurrency” in July showed that, among the companies that were surveyed, with an annual revenue of more than one billion dollars, 85 percent said that they were using crypto payment to discover and attract more customers.
Binance is working to launch prepaid credit cards.
The number of cryptocurrency debit cards has been increasing rapidly and recently, Binance working with Mastercard to launch the credit card that is prepaid for argentinians. Some of these cards like Wirex’s cards, also reward customers with cashback on crypto transactions with the card. It also allows the use of a variety of major cryptocurrency and fiat currencies and the ability to withdraw cash at ATMs.
As outlined by Vitalik, cryptocurrencies can be extremely useful when it comes to transferring money internationally or for donations to charities. In the past, when using money that is fiat, these transactions can take a lengthy time to process, and can result in high fees. The conflict in Ukraine is a prime instance of its effectiveness in this respect, with Vice-Prime Minister Mykhailo Fedorov that has tweets on August 18 that $54million had been raised by the non-profit as well as activist groups Aid For Ukraine alone.
The Bitcoin blockchain is able to handle around 5 transactions per second (TPS) which is averaging charges of $0.819 in August 24 and Ethereum has been managing about 29.3 TPS, with an average fee of $1.57. Visa however boasts that it can handle 24,000 transactions in a second and is charging between 1.4 to 2.5 percent per transaction.
The advancement of the Lightening Network which is a layer-2 technology that is built on Bitcoin’s blockchain technology, could provide an answer to Bitcoin’s slow TPS, whereas Ethereum is looking into roll-up technology for layer-2 for a number of years, including ZK roll-ups to drastically reduce costs and processing time.
Source: https://www.thecoinrepublic.com/2022/08/25/many-people-are-still-unaware-of-the-value-of-crypto-payment-says-vitalik/