Crypto: A solution against poverty and economic instability according to Paxos

A few days after launching the stablecoin PYUSD with international payments giant PayPal, the company Paxos sheds light on the direct impact of blockchain technology and cryptos on poverty reduction, the level of consumption and stability economy of countries. Part of a diagnosis of the importance and challenges of international remittances, the company explains how companies and governments can control inflation and the economic situation of their respective countries thanks to payment platforms and innovative solutions. blockchain-based. Details.

Cryptos provide a guarantee of security and transparency in remittances

In a article published on August 23 on his blogthe company Paxos explains that remittances represent an important lifeline for many thousands of families and communities.

The article recalls that these international transfers help reduce poverty and increase the purchasing power of low-income households.

They sometimes constitute a reliable source of income which stimulates local consumption, the demand for goods and services and, in turn, economic growth and the dynamism of the financial sector in several underdeveloped countries of the world.

According to Paxos, which launched a 100% regulated stablecoin with PayPal during this month, the blockchain helps to maximize the impact of remittances on the economic situation of families and those of the countries involved in the transfers.

Indeed, by its nature, the blockchain guarantees the security and transparency of transactions, especially since the data related to the transactions is recorded in an unfalsifiable register, which can be consulted by both parties and is immune to the risk of fraud, falsification and unauthorized access.

Instant sends and reduced fees thanks to cryptos

Blockchain and cryptos also contribute to the fight against poverty in that it eliminates the costs incurred by intermediaries, transaction fees and exchange rates on the final amount received by recipients. The recipients thus receive a larger share of the charges sent by the sender.

Blockchain also comes to solve the issue of speed and accessibility in cross-border transactions. Indeed, notes Paxos, technological innovations based on the blockchain make it possible to circumvent the cumbersomeness characteristic of the traditional banking system.

For urgent needs of funds, especially in case of natural disaster, illness, accident, etc., this near instantaneousness of transactions allows blockchain technology to gain ground. Transfers are made on secure platforms accessible via smartphones connected to the Internet, which allows better accessibility in regions with a low banking rate.

Clearly, Paxos is announcing to players in the payment sector that blockchain-based fund transfer platforms will transform the fund transfer sector and act directly on the purchasing power of the populations receiving these funds, which can contribute strengthen the economic stability of countries.