Article 14

make up your own website

Though still far from mainstream use, cryptocurrencies continued to mature throughout 2017, and businesses are increasingly exploring the opportunities they offer to improve the efficiency of international payments. Yet key risks remain, including extreme volatility: Bitcoin, for example, the first cryptocurrency, surged past $10,000 in late November 20171 after briefly falling 15 percent in one day to a low of $5,507 in the middle of that month.2



Pildiotsingu cryptocurrency tulemus


International Payments, the Old-Fashioned Way

 

For centuries, international payments have depended on banks. Networks of correspondent banks enabled international businesses to transact with each other around the world. Until the mid-20th century, this process was very slow, since it depended on postal communications between banks and could fail if payment instructions didn't arrive or the correspondent bank lacked the funds to make the payment.

 

Technological improvements in the last half-century mean that international payments now take days rather than weeks to arrive. The SWIFT international messaging system has replaced faxes and postal communications, speeding up the transmission of payment instructions. And central bank real-time gross settlement (RTGS) systems such as Fedwire and CHAPS (in the U.K.), together with the Continuous Linked Settlement (CLS) system for FX settlement, have eliminated the risk that payments will fail to reach their destination due to lack of funds in intermediary banks.

 

However, there is still a trade-off between speed of settlement and price. Businesses can send USD payments intraday via Fedwire, but the fees are high. Meanwhile, using the cheaper ACH system means payments may not settle for several days. International payments in many other currencies remain slow and expensive.

 

Cryptocurrency Technology is Changing the Face of International Payments

 

Cryptocurrencies are sometimes described as the "Wild West" of the financial system, breaking new technological frontiers and threatening to disrupt existing financial service providers.3 Bypassing traditional bank intermediation, they can enable businesses to transfer funds anywhere in the world quickly and cheaply. Advanced cryptographic techniques protect funds from theft and hacking, and the underlying blockchain technology filters out fraudulent or duplicate transactions. Transaction fees are generally low compared to central bank RTGS fees.

 

The oldest and best-known cryptocurrency is Bitcoin. Other popular cryptocurrencies include Ethereum, Litecoin, Dash and Monero. The international digital payments protocol Ripple has its own native cryptocurrency. Both Ethereum and Bitcoin have "clones" – new cryptocurrencies created by a technical change, known as a "hard fork." Ethereum's clone is Ethereum Classic, and Bitcoin's is Bitcoin Cash. All of these can be used for international payments, though Bitcoin is by far the most widely used.

 

Cryptocurrencies can be particularly useful for cross-currency payments. For example, suppose an American business wishes to pay a Japanese supplier. The American business's main income is in U.S. dollars (USD), but the Japanese supplier wants to be paid in Japanese yen (JPY). Conventionally, either the American business must exchange USD for JPY before making the payment, or the Japanese supplier must make the same exchange on receipt. As the payment can take several days to settle, the USD-JPY exchange rate can move while the payment is in transit, causing losses for one or the other party to the transaction.

 

Typically, businesses use forward contracts or other FX hedging products to protect against this risk. However, if both parties agree that the payment will be made in Bitcoin (BTC), BTC's fast settlement can significantly reduce the risk of adverse exchange rate movements. The American business exchanges USD for BTC and sends BTC to the Japanese business, which exchanges BTC for JPY. If the two businesses use Ripple rather than BTC, conversion into and out of cryptocurrency is automatic.

 

Alternatively, if cash flow allows, both businesses can run BTC accounts, converting to and from their respective currencies when the BTC exchange rate is in their favor. Businesses that send and receive payments in multiple currencies could find using BTC for settlement streamlines cash flow management.

 

Key Risks to Consider When Using Cryptocurrencies for International Payments

 

However, using cryptocurrencies for international payments is not risk-free. Firstly, there is the problem of exchangeability. Cryptocurrency exchanges such as Coinbase will readily exchange Bitcoin and Ethereum for major currencies such as USD, Japanese yen and euros, but other cryptocurrencies may only be exchangeable for USD or Bitcoin. Clearly, if a British business whose main income is in pounds (GBP) wishes to pay an Australian supplier in Australian dollars (AUD), using a cryptocurrency that can only be exchanged for USD or Bitcoin creates additional FX risk.

 

Secondly, cryptocurrency exchange rates are extremely volatile. Businesses can risk significant losses if they run cash positions in cryptocurrencies for any length of time, though they may of course also profit from exchange rate gains. Opportunities for hedging against adverse exchange rate movements are currently limited: some cryptocurrency futures and options are traded on specialist exchanges, but they can be expensive and volatile. There are also some over-the-counter derivative products, but these can be highly speculative: one such product, the "contract for difference", was recently the subject of a regulatory warning from the U.K.'s Financial Conduct Authority.5

 

However, there are signs that a deeper and more liquid market for cryptocurrency derivatives may be on the way, to the benefit of businesses looking to hedge cryptocurrency cash positions arising from international payments. Recently, mainstream derivatives exchanges CME Group and the Chicago Board Options Exchange (CBOE) decided to offer, respectively, Bitcoin futures6 and options.7 The Nasdaq stock exchange and broker Cantor Fitzgerald followed suit, announcing plans to offer Bitcoin futures from early 2018.8

 

As cryptocurrencies challenge international payments protocol, traditional payments service providers are responding. They are looking for ways of helping businesses to benefit from cryptocurrencies' fast settlement, security and cost-effectiveness while minimizing the FX and cash flow risks. For example, American Express recently announced a joint venture with international payments protocol Ripple and a large British bank to provide fast, secure transatlantic payments for U.S. customers.



Publisehed in: Guides-for-beginners 04-2020

Similar in Guides-for-beginners

i need to create a website
how to prepare web page
create internet site
Setting up a new website
Top website builders for online shops
what is the best way to set up a website
Create my own website for free
create wordpress site
Start building a website
Step by step guide to building a website
web page maker online
help me build a website
i need help creating a website
Build my own website free
Dream website builders
free website for small business
set up a website free
Want to create a website where do I start
Free business website
Setting up a free website for business
How to create your own website for free?
i want to make my own website
Steps to building your own website
make your own site
create your own website uk
Free web page setup
Design own website
Beginners online platforms
how do you set up a website for free
how to make my own site
Create website domain
need to build a website
web page maker free
learn how to create a website
Build your website
i have a domain how to make a website
I want to create a website?
build this webpage
how do i create a website for free
how do you get a website
how to set up a site
new website open
How can i make a website for my business?
Set up a website for my business
Best way's to setup your own website
i want to build a website
Help setting up a website?
how to create my own website
How do i set up a website for my business?
how to set up my own website
Top ecommerce shops
how to build a website
how to set up a wordpress website
help me build a website
how do i make a web page
step by step guide to building a website
how to create a website for free
easy website maker
wordpress website builder
what do you need to set up a website
make up your own website
i need to make a website
setting up a company website
how to make my own website for free
how to build a wordpress site
Where to create a website?
Online website maker
what do you need to start a website
Make a business website
setting up a web page
How to make your own website?
create your own website online
quick website setup
how to set up a web page for business
Starting up a web page
Help setting up a website?
how to create and host a website
how do i make a website for my business
Make my own website
wordpress site builder
How to build an easy website?
How to build my website?
Top online stores from the future
how to set up web
Starting a website
setting up a web address
how to build a website
How to make a dream online store
Best website builders for online
Best online shops in UK
Create my website for free
Dream website builders
Building ecommerce shops
setting up a free website for business
create a website for my company
i want to make my own website
how can i build my own website
Develop my website
business website
need to build a website
how to build an easy website
setting up a company website
Set up a website for my business
What do I need to do to create a website?
How can i make a website for my business?
how to build a simple website
Build my website
build own website
How to build a web site?
setting up a business website
Best website builders for online marketing
what do i need to make a website
i need help setting up a website
how to get own website
Create business website free
create website step by step
how to design a website
How to build my own website for business?
how to build up a website
How do you set up a website for free?
create web page
how to build a web page
build your own website free
Website building sites
Create a website for my company
Website building sites
how to build my own website
setting up a website
Web creator online
build this webpage
how to have own website
How to create my website?
Set up own website
Best online shops in germany
Starting a website
how do we create a website
Starting your own web page
make ur own website
website making sites
create your own website free
create your own website
Step by step guide to building a website
set up web
Setting up a simple website
Top website builders for online shops
How to set up own web page?
i want to create a website
How to make your own website?
how to build my own website for business
What do I need to do to create a website?
make new website
creating web
Build my website
How to make a dream website
start up a website for free
how to start my own website
how to get a website
Make a business website
how can i make a site
how to do a website
build your website online
who makes websites
Starting a website
how to build my website
create your web
Set up own website
create my website for free
how do you build your own website
websites to make websites
Starting a website
setting up a business website
Get your own website
Top website builders for online marketing
Creating a personal website
how to start your own web page
how to start a new website
i want to make a website
set up a website for my business
Best build your own websites
Creating a personal website
set up my own website free
How to make a dream website
Build my own website
how can i get a website
website maker
How to set up the website?
Create a website for free
Setting up a simple website
how to set up a simple website
Creating a personal website
How to set up a simple website for free?
how to sites
website builder uk
Top hosting reviews from professionals
Website for making websites?
How to build a web site?
create business website free
Best website builders in 2020
Professional website builder
how to set up your own web page
how to own a website
create site free
Need to build a website?
help me create a website
Create my website for free
web page maker online
How to build your own website for free?
how to create a website step by step instructions
Build your own webpage
how to host my own website
how to setup a free website for your business
free website for small business
How to build my website?
how to create web design
creating a website from scratch
how to build an easy website
Easiest way to set up a website
make your own website online
Create site free
I want to create a website?
Create new website free
Build my website
How to setup a free website for your business?
how to put up website
how to design your own website
how can i make a website for my business
what is needed to create a website
how to design your website
Setting up a website
How do I setup a web page for free?
Get your own website
Website maker
Professional website builder
best way to setup your own website
Creating a personal website
Setting up a website
Setting up a free website for business
how to set out a website
How do I create a website for free?
what website to create
Create website step by step
Website building sites
I want to build a website?
How can you make a website
how to start a website for free
Build own website
create own website
how to build up a website
How to create www website?
how to start a new website
creating a personal website
build my own website free
build my site
how to build a web page
Create my own web page
startup website
setting up your website
Best online hosting providers
setting up a new website
how do i make a website
Starting a website
I want to build a website?
Best ecommerce shops
how to make my website
Top online marketing tools
How to create my website?
what is the easiest way to set up a website
how to make my own website for free
how to build a website step by step
Create my own web page
free web page setup
Free business website
how to create your own site
Create own site
build me a website
Starting your own web page
Create new website easy guide
how to create my own web page
How to create a business website?
Starting a website
creating a website for your business
set up a new website for free
Website for making websites?
setting up a web sight
Best online stores
create own website free
web page maker
how to set up a web page for business
how to develop my website
Top online stores in UK
how to create a website for free
how to set up a website for your business
how was the internet created
how to create own website
create own website free
how to make my website
How to set up a simple website for free?
how to develop a website
Create site for free
how to build a web page
web builder
Building ecommerce sites
Create a website for my company
Create new website easy guide
how to set up a web page for business
Free web page setup
Best way's to setup your own website
how to create online website
make a website page
how to open your own website
how to build up a website
How to create www website?
How to make your own website?
what do i need to start a website
Professional ecommerce sites
Create your own site
how to make my own web page
Building ecommerce shops
How to create my website?
start my own website
How to build a web site?
Dream website builders
how to get a website
Where to create a website?
Best online stores around the world
what to make a website on
How to build my website?
How to set up my own web page?
how can i make a site
Starting your own web page
how to make online website
how to make your own website for free
Setting up a free website for business
how can i create a web page
Professional hosting reviews
develop my website
how can i create a website
Starting up a web page
How do I start a website for my business?
need to create a website
Create a new web page
web page setting
wordpress website builder
build my own website free
build your own website
how to set up own web page
how do you set up a website for free
Create own site
I want to create a website?
Top website builders for online shops
set up website domain
what do i need to set up a website
best way to set up a free website
How do I setup a web page for free?
i need help building a website
Step by step guide to building a website
create website uk
How to make a dream blog
i need to make a website for my business
How to build a website?
make in website
how to build my own website for business
How to build your own website?
Create website domain
How do I set up a website for my business?
Build me a website
website to
Best ecommerce shops
build my own site
Create website domain
how do i create a website for free
how to make new site
Build my own website
How to create my website?
how to build a website for free
where to start creating a website
Dream online marketing tools
Free business website
how can i create my website
Dream online marketing tools
Create website domain
Best online hosting providers
how do i setup a web page for my business
Where to create a website?
how to learn web designing step by step
where to create a website
Where to create a website?
Step by step guide to building a website
set up web
Best online shops in US
creating a personal website
Easiest way to set up a website
how to create your own site
where to create a website
Best online shops in US
Create a website for my company
how to build my website
Top ecommerce shops
design a website
free easy to set up websites
how 2 make website
Create my own web page
Setting up a website
Dream online marketing tools
how to set up a website for your business
setting up your website
create a website
online website builder
Create a simple website
How to build a website?
where to build a website
Best online stores in US
make a simple website
Create website step by step
How do I create a website for free?
open website
Best online shops in canada
how do i get my own website
Make a business website
Starting a website
Where to create a website?
Create my own website for free
Create site for free
how do you create a web page
How to setup a free website for your business?
create your own website
How to setup a free website for your business?
Creating a website?
Modern website builders
Create internet site
how to build your own site
create your website
Top ecommerce shops
how to build your own website
Top online stores in canada
Help with setting up a website
best way to build a website
Get your own website
Building ecommerce shops
How to build a business website?
how do i set up a web page
building a web site for dummies
Free business website
my own website
What do I need to do to create a website?
a web
how to make website on internet
how can i build a website
create site free
Setting up a simple website
Set up my own website free
Setting up a simple website
Top e-commerce shops
Best online stores in canada
How do you set up a website for free?
Easy website builder
create your own website uk
creating a personal website
Building ecommerce sites
Setting up a website
design your own website
Top online stores in canada
Create site for free
Creating a website?
online webpage creator
create website step by step
setting up a free website for business
Professional website builder
how can i create my own site
best way to set up a website
How to build my own website for business?
create web page
how to create a website
Build my own website
Best online hosting providers
create own website
How to set up own web page?
How do I setup a web page for free?
start a web page
create a business website
Creating a personal website
How can we make a website?
Build my own website
How to build a web site?
starting a website
how to make online website
How to make your own website?
build me a website
Create site for free
setting up a business website
Setting up a website uk
How to create my website?
How can i make a website for my business?
Building a website where to start
create wordpress
how to build a webpage
Build my site
setup web
to make your own website
Create a new website for free
make ur own website
Build my own website
free business website
How do I set up a website?
How to build my website?
free website maker
How to create my website?
how to build a simple website
Best website builders for online marketing
Professional website builder
How can I make my website?
Best ecommerce shops
help creating a website
how to set up a web page
build my site
how to develop my website
setup site
How can I create my website?
free easy to set up websites
Create a website for my company
how to create a website and host it
Make my own website
wordpress website builder
i have a domain how do i build a website
Make my own website
Creating a personal website
help me build a website
How to create best online stores in 2020
how do i make a web page
Best online shops in canada
create site free
Best online stores in germany
how to make own web page
online website maker
online webpage creator
make a website from scratch
easiest way to create a website
how to set up my own web page
I want to create a website?
Help with setting up a website
Top website builders for online marketing
How do I set up a website for my business?
How to make a dream online store
how to design your own website
to make your own website
Build my site
how to make your own site
Build my site
how to set a website
how do i create a website
how to set up a personal website
Build my own website free
how to build my own website
how do i start a website for my business
Build my site
how can i make a website for my business
start your own website
build this webpage
set up own website
how to put a website online
how to make a website in bangla
create your own website
how do i build a website
create new website
How do I setup a web page for free?
Best online shops in germany
how yo make a website
How do you set up a website for free?
create own site
how do you set up a website for free
how to make own web page
How do I set up a website for my business?
create your website
Build my website
websites to make websites
How to set up a simple website for free?
how to build a webpage
create your own website online
How to make a dream blog
configuration website
what is needed to set up a website
free website builder
how can you make your own website
How to create my website?
what do i need to do to create a website
Build your own webpage
Best ecommerce shops
How can we make a website?
Best e-commerce shops in 2020
Create site
how to start a website business
programs to make websites
create your own website
Create a website for my company
creating and designing a website
Free website maker
Create a new web page
Best hosting gurus in 2020
Professional online platforms form beginners
Make my own website
can you set up a free website
Make my own website
Professional ecommerce sites
How do I make a website for my business?
how to put up a website for free
free easy to set up websites
make your web page
Build my website
Build own website
Free business website
what do i need to do to create a website
instructions on how to create a website
Build my website
how do i set up my own website
set up a website for my business
what are the steps to create a website
basics of setting up a website
setting up your own web page
How to open blog in 2020
Steps to building your own website
web creator online
Create site
how do i setup a web page for my business
set up your own website for free
Build own website
Set up a website for my business
web page maker free
business website builder
Help with setting up a website
Dream blogging tools
Beginners online marketing tools
Make a business website
Creating a personal website
Best website builders in 2020
How to build your own website for free?
how to make my own website for free
Create website domain
create website step by step
How to build your own website for free?
free web page setup
create new website free
starting up a website
Help with setting up a website
How do I make a website for my business?
Starting up a web page
online website builder
Need to build a website?
wordpress website builder
Create web page beginners guide
I want to create a website?
How to build my website?
Build your website
Create site for free
How to set up the website?
Want to create a website where do I start
how to develop my website
How can i make a website for my business?
Website for making websites?
Free website maker
where can i make my own website
design my website
how to build your website step by step
wordpress website builder
can i set up a website for free
need to build a website
Where to create a website?
Build my site
Modern website builders
where can i build a website
best way to make a website
Hosting gurus in 2020
How do I set up a website for my business?
making a website uk
Best online shops in germany
how to develop my website
what do i need to set up a website
create your own website online
Professional ecommerce sites
how to create my own site
Dream online stores
how can you make a website
create site
Instructions on how to create a website
Building a website where to start
Best website builders for online marketing
How to open blog in 2020
Top hosting reviews from professionals
Starting up a web page
how to create a homepage
create your webpage
Instructions on how to create a website
How to create a free website for business?
easy website setup
how to create my website
Build my own website
want to create a website where do i start
how to set up a business web page
Website building sites
How do I setup a web page for free?
How to build my website?
Best online stores around the world
Best website builders in 2020
how to set up my own web page
How to open website in 2020
build your own website uk
creating a website for dummies
what does it take to set up a website
Step by step guide to building a website
how to build your own website
Create new website free
website developer
build your own webpage
Create my own web page
Web creator online
Set up own website
making a wordpress website
How do i set up a website for my business?
How to build your own website?
create site free
How do I make a website for my business?
how to start building websites
how to make your own site
how to create online website
Setting up a free website for business
How do I create a web page?
How do I start a website for my business?
Starting a website
Starting a website
How to build my own website for business?
Build your website
how to start up a website for free
Design own website
make website popular
best website setup
i need to make a website
what are the steps to make a website
how to create my own website for free
New website builders
step by step guide to building a website
steps to building your own website
Top online stores in canada
How to set up the website?
make my own web page
I want to open online store
how to develop a web page
where to make your own website
how to create my website
Setting up a website
Create site
How to make own web page?
Best online stores in canada
How do I set up a website?
how do i build my own website
Top online stores in UK
How can I make my website?
how to make your own site
Setting up a simple website
best way to design a website
Build my website
How to build my own website for business?
Create own site
how to open a website
Setting up a simple website
Best website builders for online
Website building sites
Develop my website
wordpress create website
How to create my website?
make your own website
Get your own website
build your website- pharmacist
make your own webpage
How can i make a website for my business?
Step by step guide to building a website
make a business website
how can i start my own website
Online website maker
Build your website
How do I set up a website for my business?
create your web
how to build a website
How can i make a website for my business?
easiest way to make a website
create site
How do I create a web page?
where to make a website
help with setting up a website
i want to create a website
Create my own web page
How to create my website?
Best online stores in UK
Free business website
How to set up my own web page?
Create site
online website maker
how to configure a website
How to create your own website for free?
build my website
Create my own website for free
build your own website
Set up own website
how do i create a website
Create own site
How do I create a website for free?
how to make a website step by step
Building a website where to start
how to setup a free website for your business
Setting up a website
making a website uk
How to create www website?
steps to building your own website
create website online
Free business website
Top online stores in germany
how to make a good website
design your own website
Step by step guide to building a website
Create my own web page
where to create a website
business website builder
How to build a web site?
Top online stores in UK
Top ecommerce shops
step by step website building
setting up a website uk
i want to build a website
how to make how to make
Easy website builder
website creating sites
how hard is it to create your own website
how to build your own website
How to set up a web page for business?
can i create my own website
Create own site
How to make own web page?
Build my site
Design own website
to make your own website
steps to create a website
what do i need to do to start a website
how to design your website
Create own site
Starting a website
set up my own website free
easiest way to create a website
Create a simple website
websites to create websites
Set up own website
build your own site
how do i create a website
Building ecommerce sites
how do you build your own website
Set up a website for my business
How to make your own website?
how to create my own website for free
Create site
setting up your website
Create internet site
create your webpage
Build my own website
how to create a wordpress site
how can i make my website
creating and designing a website
build a website from scratch
design a website
creating a website for your business
Help with setting up a website
setup site
i want to create my own website
Professional ecommerce sites
how to set up a business web page
making a website uk
Build my site
website design
Hosting gurus in 2020
website build with
create your web
how to build a website for free
create site free
Create site
How can I build a website
website for
how to build a website
Top website builders in 2020
how to make new website
making a wordpress website
build your own webpage
help with setting up a website
quick website setup
free easy to set up websites
procedure to create a website
Best online stores in US
first step in creating a website
how to build my own website for business
Step by step guide to building a website
i want to create my own website
make your own website easy
Develop my website
Create own site
how to build your website
Building ecommerce sites
how to get a website
set up my own website
How to build a website?
create your website
how can you make a website
How do I create a web page?
want to create a website where do i start
design my own web page
need to build a website
Easy website builder
Build me a website
make my website
get website
How to build my website?
Create website domain
Setting up a website
starting up your own website
steps to building your own website
Create website step by step
design my website
Hosting gurus in 2020
to set up a website
Where to make a website?
Create my own web page
How to make own web page?
Steps to building your own website
how to make an easy website
How to create a free website for business?
How can i make a website for my business?
setting up a website
what you need to create a website
how to build my own website for business
Setting up a website
how do i create a web page
build up website
Create a website for my company
Build my own website
Create business website free
Make my own website
Website for making websites?
is it easy to set up a website
best way to build a website
I want to create a website?
setting up a new website
Setting up a website
Starting your own web page
Help setting up a website?
How to create best online stores in 2020
web builder
Make a business website
how to build a wordpress site
Best build your own websites
How to create my website?
Creating a personal website
How to create my website?
How can we make a website?
Professional website builder
how we make our own website
make own website
how to set up online website
Top online stores from the future
Help with setting up a website
how to make a site
setting up a business website
create a website
design your web page
Quick website setup
Top online stores in germany
Create my own website beautiful website
How to make own web page?
I want to create a website?
Help with setting up a website
start a website free
make up your own website
create a business website
Setting up a website uk
how to create a website for free
Dream website builders
develop own website
what do i need to do to create a website
Develop my website
How to build a business website?
how to create your own website for free
How to set up my own web page?
how to design a website
Top e-commerce shops
How to create www website?
how to set up a simple website for free
creating web
get website
setting up your own web page
Create my website for free
how to create my website
How to make a dream youtube channel
how to make website on internet
Free business website
a website
how to make a web page for my business
How to build your own website?
How to set up the website?
Make my own website
Start building a website
how to create a website step by step
how can i start a website
what to make a website
How to create my website?
how to build a website for dummies
free website builder
Make a business website
Best online shops in US
Best online shops in canada
web page maker free
Create a new web page
Set up own website
how to make a website for my business
How to build my own website for business?
Make my own website
how to create a website step by step
web page maker free
How to build my website?
want to create a website
how to build a simple website
Set up a website for my business
Build my website
Top website builders for online shops