- Cross board payment and the role of the bank.
- Merits and demerits of banking.
- Comparison of different modes of payment.
There are many ways or methods of the payments that are used by the countries that do not permit crypto payment methods as they believe this payment method is not reliable but these countries that use crypto as payment method see few upsides of crypto.
International Payments And Role Of Crypto Payments
International payment means the transactions between countries with different currencies. This payment is more complex than the national payments. Every country has its own laws and regulations and they work accordingly. When it comes to domestic payments there are many factors that make the payment easy like time zone, rules regulation of banks, laws and currency.
Types Of International Payments
Retail and Wholesale
Retail is a very familiar type of payment used frequently. This includes buying things from a different country, doing business in other countries, and sending money to someone who is in a different country.
Wholesale can be a foreign exchange conversion or transaction between commercial banks.
Corresponding three banks handle import export of goods in different countries and it is a traditional way for wiring money using banks.
Different Methods Of Payment With Pros And Cons
Corresponding banks include intermediary banks that slow down the process of the transaction or the import of goods and services, almost every time no insistent payments, different time zones, and working hours also affect the work timings of the corresponding bank.
Fetches company is an intermediaries company that works as a third party example china uses WeChat, Alipay. So it makes the payment easy and changes the currency easily because they have access to the balance sheet of central banks. Sometimes they have direct access, other times they use the license of the banks.
CBDCs have other interpotable modes of payment in which retail customers hold access to commercial banks or have access to central banks.
Bitcoins as a mode of payment can be the most unstable method of payment between the countries. Also known as peer-to-peer electronic payment also this is the centralized exchange system.
Stablecoin is growing rapidly in 2022 but it is short -term volatility in bitcoin payment. It is an easy method as it has the possibility of further liquidity and easy access to the online payment or digital payment. There are a few downfalls as this payment, like oligopoly, is not accepted worldwide, and transactions can be frozen.
Need Of Worldwide Network
Every country needs import -export facilities for completing the process of buying and selling. They need currency. It can be in digital form or in physical form but the digital currency is easy to transfer and there is no need of changing the currency so the market accepts the different methods that make the process easy, reliable, and secure. The financial market is making the regulation for making this payment more secure but it will take some time.