Blockchain technology is not only revolutionizing international payments but also opening up new possibilities to address other business challenges. From supply chain traceability to process automation, blockchain offers innovative solutions that go far beyond money transfers.
These are four important benefits of using stablecoins in cross-border payments.
Blockchain excels at recording transactions immutably, ensuring the traceability and authenticity of goods. In the food and beverage industry, companies in Mexico are using blockchain to track the origins of products like avocados and tequila, guaranteeing quality and authenticity for global consumers. In the pharmaceutical sector in Brazil, a pharmaceutical company implemented blockchain to combat counterfeit drugs, resulting in a 40% reduction in illegitimate products within its supply chain. Additionally, logistics companies in Argentina have adopted blockchain to monitor shipments in real time, reducing losses by 25%.
2. Automation through smart contracts
Smart contracts automate agreements and transactions without intermediaries, delivering unprecedented efficiency. In Chile, international trade companies are using smart contracts to release payments once goods arrive at the destination port, eliminating delays and disputes. In Colombia, insurance companies have implemented blockchain to automatically process claims, reducing resolution times by 60%.
3. Decentralized Finance (DeFi)
Blockchain technology is transforming business financing, particularly for large multinational corporations. These companies often manage complex operations spanning multiple jurisdictions, presenting significant challenges in liquidity and financing management. DeFi offers solutions to these challenges by providing access to instant and adaptable credit lines, enabling real-time cash flow optimization.
For example, large companies can leverage decentralized platforms to negotiate loans under more competitive terms than those offered by traditional financial institutions. In Mexico, multinationals have tokenized inventories as collateral to secure credit at more favorable rates than traditional institutions. Additionally, a manufacturing company in Peru saved 20% in operational costs by using DeFi platforms for international payments.
These platforms facilitate asset tokenization, allowing companies to use inventory, intellectual property, or other resources as collateral to obtain financing. This is especially valuable for multinationals seeking to maximize the use of assets dispersed worldwide.
Another crucial advantage is DeFi transactions' ability to reduce dependence on financial intermediaries. This not only streamlines processes but also lowers costs associated with fees and waiting times. For multinationals conducting hundreds of thousands of transactions monthly, this efficiency translates into significant operational cost savings.
4. Emerging use cases
The application of blockchain extends to innovative areas beyond traditional processes. For instance, in digital identity management, blockchain enables secure data storage, facilitating quick and reliable verifications for various purposes. Regarding intellectual property, the technology provides an immutable record to protect copyrights and patents, reducing the risk of legal disputes. Additionally, blockchain-based voting systems offer transparency in decision-making processes at both the corporate and governmental levels, strengthening participants' trust.
In Central America, startups are implementing blockchain for secure verifications in banking processes. Designers in Colombia are using blockchain to register copyrights, reducing legal disputes by 30%.
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Blockchain-based solutions are redefining how businesses operate, offering tools to improve efficiency, reduce costs, and increase transparency. Adopting these technologies could be the key to staying competitive in a globalized market. Companies that quickly adapt to these trends will not only optimize their operations but also lead their respective industries into a new era of digital transformation.
Stablecoins backed by blockchain have reduced transaction costs by up to 50% in cross-border operations across Latin America. Companies adopting this technology also report a 40% improvement in operational efficiency, positioning themselves as leaders in the digital economy.
To leverage these benefits, companies can start by identifying strategic areas where these technologies address specific challenges, such as optimizing international payments or improving liquidity management. Bitso Business offers businesses a secure and easily integrable infrastructure to efficiently and strategically implement these tools, positioning them at the forefront of digital transformation in their industry.
This article is based on the report “From Barriers to Bridges: How Blockchain Can Reshape Cross-Border Payments in Latin America”, recently published in collaboration with PCMI, our commercial partner specializing in market intelligence consulting in the global payments industry.
This article is based on the report “From Barriers to Bridges: How Blockchain Can Reshape Cross-Border Payments in Latin America.”, recently published in collaboration with PCMI, our commercial partner specializing in market intelligence consulting in the global payments industry.
Read the full report here and prepare your business to compete in an increasingly digital world.
Stablecoins: The Key to Revolutionizing International Payments
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