- Binance.US CEO Catherine Coley describes how cryptocurrencies like Bitcoin, Ethereum and XRP make people’s everyday lives easier and solve the problems of the various fiat currencies.
- As adaptation continues, cryptocurrencies will enter the mainstream and cross-border use will continue to increase.
Binance.US CEO Catherine Coley addresses a fundamental problem of the traditional financial system in a new interview: Every country has its own fiat currency, which must be used to pay for services or goods in that country. As a business traveller or tourist, many different fiat currencies often have to be used, often resulting in disproportionately high exchange fees.
Cryptocurrencies can solve exactly this problem and now offer a simple and well-documented introduction on several platforms. Coley is convinced that more resources should be put into the education and training of content about cryptocurrencies.
Bitcoin, ETH and XRP overcome national borders
Coley notes that the adoption of cryptocurrencies has continued to grow worldwide as more and more people recognize the benefits of Bitcoin or XRP. Especially when paying in different countries, cryptocurrencies have a decisive advantage over the US-Dollar, the Euro or the British Pound:
“One of the reasons why we’ve seen such a better global adoption is that the pain point Bitcoin, XRP and Ethereum resolves is felt so much greater outside the United States.
For international frequent travellers it is a considerable financial burden if different fiat currencies have to be used for payment:
Every flight out of Hong Kong or Singapore is an international flight. That’s a significant burden on your change purse when you’ve got to go to Malaysia, Singapore, and Thailand in an afternoon and have four different fiat currencies to handle. Going from Alabama to Nevada to Washington to New York, you can keep Uncle Sam dollars in your pocket.
Although cryptocurrencies such as Ethereum offer far more complex use cases through the use of smart contracts, oracles or other technical refinements, a basic function is the fast and, above all, cost-effective processing of cross-border payments. It is irrelevant whether a service is to be paid for in Germany, the United States of America or Thailand.
As long as there is an acceptance point for Bitcoin or XRP, the same transaction fees apply worldwide. Coley sees a great need to catch up in the area of education about cryptocurrencies, especially in the USA, and has set himself the goal of providing the American population with additional tools and instructions to enable them to enter the crypto-market:
It’s my mission to make sure that every American can have financial confidence and crypto literacy.
Coley continues to argue that the adoption of Bitcoin has continued to grow rapidly and, compared to other assets, has the most points of acceptance worldwide and therefore remains the most used cryptocurrency. Coley further describes that the demand for “micro-payments”, transfers with very small amounts, is growing, especially in poorer countries.
Ripple provides a suitable technology for this special application with average transaction fees of currently $0.0002 per transfer. In addition, transactions are processed in near real-time without the need for a third party such as a bank to act as an intermediary and incur exchange fees.
The halving of Bitcoin and the influence of Covid-19
Coley argues that Bitcoin’s limited supply of 21 million BTC and the halving has exposed the real weaknesses of the current monetary system of “infinite money printing” and the resulting devaluation of money and has caused many people to question it:
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We now have a reality on our hands that points to why you would want to have a fixed monetary supply and a deflationary aspect to a currency rather than an inflationary one.
Coley outlines that the Corona pandemic has accelerated the adaptation of cryptocurrencies. She predicts that the use and acceptance by the population but also by governments worldwide will continue to increase.