In recent years, the importance of cryptocurrencies in our lives has increased exponentially, whether it’s for investments or to make payments to different parts of the world while avoiding the high costs of conventional methods.
When it comes to investments, many people are choosing to allocate part of their portfolio to crypto. This type of highly liquid asset is gaining popularity among people who choose to invest with a view to grow their assets in the medium or long term. In fact, we are even seeing more and more interest from investment funds that wish to offer ETFs that will track the Bitcoin price.
Making payments in a changing world
When discussing payments, it's crucial to understand that in an ever-globalising world, it's becoming a more common occurrence to hire services from individuals who might be in a different part of the world. Additionally, we should also understand that these individuals may not have access to the same traditional systems, or they may intentionally choose not to. This is where the importance of a fully decentralised payment method becomes evident.
Twenty years ago, for example, it was impossible to think about an international transfer of 15 dollars. Mainly because the associated costs exceed the amount of the transfer itself. But what happens when we talk about crypto? This transfer can be made with far more efficiency, thanks to the low costs involved.
But even with these low costs, there is a second obstacle to consider: How do you convert crypto into USD or other traditional currencies? While the adoption of digital assets continues to rise along with the crypto market cap, there are things that still cannot be paid with cryptocurrencies, and people need to convert them to dollars, euros, pounds or any other local currency.
It’s also true that for those who are familiar with the world of cryptocurrencies, conversions like Bitcoin to USD aren’t a problem, but there is still a large number of people who are not as familiar with this world and don’t feel the same comfort, or simply do not have access to the same tools or systems.
The crypto solution
This is where the necessity arises for seamless and secure interaction between traditional currencies and cryptocurrencies. If we need to make a payment in US dollars, and the US Dollar is not the official one of the country we are in, any bank would be able to help us convert our local currency into dollars. Why can’t we have the same flexibility when exchanging between Bitcoins and Dollars, for example?
Understanding this need is where I see one of the main advantages of Xapo Bank — a fully regulated bank that gives you access to both fiat and crypto, based in Gibraltar, that allows you to operate with total freedom between both worlds. Xapo Bank positions itself as the perfect bridge between Bitcoin, Dollars and Stablecoins.
The possibility of making transfers and payments, regardless of whether we are talking about Bitcoin, Dollars or Stablecoins, presents an enormous advantage in our globalised world.
Xapo Bank is the best ally for those who do not have a solid understanding of the crypto world but still want to gradually delve into it, as well as for experienced people who are looking for a place where they can operate safely.
This article is for general information purposes only and is not intended to constitute legal or other professional advice or a recommendation of any kind whatsoever and should not be relied upon or treated as a substitute for specific advice relevant to particular circumstances. We make no warranties, representations or undertakings about any of the content of this article (including, without limitation, as to the quality, accuracy, completeness or fitness for any particular purpose of such content), or any content of any other material referred to or accessed by hyperlinks through this article. We make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up-to-date.
Eligible fiat deposits are protected by the Gibraltar Deposit Guarantee Scheme up to a maximum of the US Dollar equivalent of EUR 100,000 (subject to prevailing exchange rates on the compensation date).