Anchor as a Universal Payment Solution
Due to high fees and slow processes, traditional payment methods are slowly becoming obsolete. The world is in dire need of a stable universal payment solution that overcomes the obstacles of the regular payment system. Throughout this article, we will show you how and why Anchor would be extremely beneficial as a universal payment solution.
How many times have you waited for your income for days? If you are an expat worker, have you been surprised by the cost of your transaction? If so, read the following article and find out how your money transfer can be both fast and cost-effective.
Traditional Payments vs. Stablecoins
When it comes to the traditional payment system, you have to opt for either a slow transaction process with lower fees or a faster one with higher fees. With stablecoins, you do not have to choose, you can have your cake and eat it, too.
- Slow transaction process
- High transaction fees
- Accessibility issues
Banks have once been the best and only option for any kind of payment, but with the faster pace of life, waiting in line has become pretty time-consuming. In order to save time and speed up the process, online banking has come up as a solution. Even though it may seem like an improvement, it still has its drawbacks. When it comes to cross-border payments and the speed of the transaction, there is almost no difference whether you use online banking or a regular bank. Yes, you do not waste time queuing, but it is all the same for end-users, the time for receiving money is unchanged, and it may take up to three days. This may be a real problem if you are in immediate need of cash.
Additionally, in order to be profitable for the banks, they need to charge fees, which sometimes may be pretty high. Then, the accessibility of banks may be another issue. If, for example, you as an end-user receive money on your bank account, but you are not in a position to go to the bank and verify your income, then your money may be sent back after some time.
Since speed was noticed as one of the main downsides, many platforms for worldwide online money transfers such as PayPal, MoneyGram, etc. appeared to solve the issue. And they did provide the solution to some extent. If you used some of these platforms, the time needed for the transaction would be greatly reduced, but still not instantaneous. It usually takes 30 minutes, but it may go up to one business day. However, even though they partially resolved this particular problem, the fees they charge are extremely high, even higher than banks.
- Fast transaction process
- Significantly lower transaction fees
- Accessible to anyone with an internet connection
That is where we make a difference between traditional payment methods and stablecoins. Stablecoins were created with the aim to maintain stability, and thanks to their non-volatile nature, they are seen as the future for cross-border payments. They are built on blockchain which means that they have constant and global access and all transactions are simultaneous, transparent, and secure.
Anchor stablecoin is built on Ethereum blockchain, so it is further regulated with smart contracts, it has a global access 24/7 and would enable you to receive money instantaneously. So, it comes as a perfect solution when we talk about the speed of transactions. Also, if you used Anchor, your transaction would be carried out with minimum fees and the process would be really cost-effective. And when it comes to the accessibility of banks and users’ inability to withdraw money, Anchor overcomes this issue, too. Through the Anchor wallet, your ANCTs would be saved for as long as you need it.
Therefore, Anchor stablecoin surpasses traditional payment systems on many levels. With Anchor, sending money both domestically and internationally would be both time-saving, profitable, and secure.
A Great Need for Stable Payment Solution
The number of migrant workers is constantly increasing and the remittance market is becoming bigger and bigger. Precisely, this market reached an all-time high of $554 billion in 2019. The remittance market did experience a decline in 2020 due to the pandemic, but it is expected to soon recover and it is still very important. Statistics say that the remittance market alleviates poverty in developing countries, provides food and shelter for families, reduces child labor, and increases education. Therefore, the need for secure remittance providers is more than obvious.
But, it is not a rare situation that an expat worker coming from a developing country is the only breadwinner. So, paying high fees every time they send money back home is a huge expense for a salary that is usually not so great. That is just one of the reasons why we need a better payment solution, that would be fast, cheap, and secure at the same time.
Another market that is growing in number is the e-commerce market. The global e-commerce market size was valued at $9.09 trillion in 2019. The convenience of this market is great because it enables people to shop from their homes. However, in order to make a purchase, you need to have a credit card, meaning that there are middle-men and consequently fees that go up to 3% per purchase. So, if this whole process was done directly between buyer and seller, it would be much facilitated and economical for both sides.
Stablecoins are built on blockchain, and that enables fast, economical, secure, and direct purchases and transactions. Moreover, they are non-volatile in nature, so high exchange rates for every transaction would also be bypassed.
That Answer Is Anchor Stablecoin
As has been previously said, the remittance market is growing from year to year and migrant workers do not always have an opportunity to open a bank account, so they are limited to online money transfer providers, which further implies high fees. Even if they do have a bank account, the transfer is still slow and costly. So, this is a huge obstacle for them. But, they can overcome all problems if they use Anchor stablecoin as a means of payment. First of all, if they cannot open a bank account, the only thing needed for a transaction in Anchors is to have internet access and create the Anchor wallet, which consists of just a few simple steps and it takes just a few minutes. Then, the transaction made through the Anchor wallet would highly reduce the costs, as the fees charged are minimal. Moreover, Anchor stablecoin has full liquidity and the end-users would be able to transfer their ANCTs into fiat any time they want.
There is a need for cross-border payments on a daily basis, and not only on the P2P level but also on B2B. Businesses from one country are constantly cooperating with businesses from another country and they need a fast, secure, and cost-effective payment system. By using Anchor for international payments, speed, and cost of a transaction would no longer be a problem. Also, being done on blockchain means that they would be able to follow their transactions at any point in time. In that way, they would be able to establish new global collaborations as they would not be limited by different fiat currencies and high exchange rates that would make the collaboration unprofitable.
It is often heard that stablecoins are the next big thing for the e-commerce industry. Why is this? To recapitulate, the current e-commerce system is dependent on middle-men, which means that high fees are charged for every purchase, and exchange rates are constantly changed, depending on the change of fiat currency used. How can Anchor make a purchase profitable for both buyer and seller? Anchor is built on Ethereum blockchain and in that way it enables direct collaboration between the buyer and the seller. Moreover, as it is on Ethereum, it has smart contracts, so this direct collaboration is completely regulated and secure. Then, it does not depend on the bank, and the fees are significantly lower, thus it makes it profitable for both sides. Additionally, Anchor is pegged to a completely stable value peg, the Monetary Measurement Unit, whose value does not alter over time, and that way you would not have to worry about the exchange rate because it would always be the same, no matter the fiat you use.
Even though stablecoins are not usually related to salaries, Anchor represents the perfect solution in this area, too. Convenience and speed of payment and lower fees are certainly part of it. But what else makes Anchor perfect for salaries? The fact that Anchor is an algorithmic stablecoin that has a value peg that is unaffected no matter the circumstances and makes Anchor truly stable. That way, employees would have salaries whose value would not change over time and if they decided to save money, having holdings in Anchors is also the ideal solution. No matter how long they have their holdings, they would not lose the purchasing power of their money. Therefore, paying out salaries in Anchors would be beneficial for both business owners in terms of convenience and cost and employees, in terms of preserved value.
The world has become one big global market. An increasing number of people are opting for online shopping and online banking. But, the handicap of the traditional payment system is becoming more and more obvious. The world is speeding up, so the payment system needs to move into higher speed, too. And the unnecessary costs need to be reduced. That is why Anchor is here. To remove the hurdles and enable you to have a universal, fast, cost-effective, and secure payment system.
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.
Title photo by QuinceCreative, Pixabay.