What is cryptocurrency?

In July, Coindirect’s very own Head of Partnerships, Jonny Griffith led a webinar on all things crypto – exploring how Crypto FX can take the pain out of payments, and put you back in control. In case you missed this session, here’s a quick recap on everything Jonny covered:

Cryptocurrency is a form of digital currency that enables people to send and receive money anywhere in the world, quickly and efficiently. Created and stored electronically, in the blockchain, cryptocurrency derives its name from the encryption techniques used to validate the transactions – cryptography. Put simply, advanced coding is involved in creating monetary units and verifying the transfer and storage of funds. The purpose of this encryption is to provide a layer of safety and security.  

This security layer is necessary as cryptocurrency’s supply is not determined by a central bank, and it is completely decentralised. When you transfer cryptocurrency funds, the transactions are recorded in an online database making it extremely difficult to counterfeit or double-spend. 

Blockchain is a decentralized database that stores a record of all cryptocurrency transactions across a peer-to-peer network. Through this technology, users can complete transactions without a need for a central clearing authority or bank.

Traditional cross border settlement systems are slow, inefficient and expensive. Built on legacy infrastructure that was never fit for purpose, and lacking a standardised data sharing method, this accepted practice is long overdue an overhaul to match today’s increase in global trade and overarching digitalisation. 

Crypto cross border settlement is driving innovation and efficiency in this space. Via cryptocurrency, sending money across borders has never been easier or more secure. You can enjoy same day settlement  – all while avoiding the high costs associated with sending money across borders. 

Taking advantage of cryptocurrency transactions can enable you to: 

• Unlock access to more customers
  • Transacting via Cryptocurrency is a cost effective and fast way to safely move high volumes out of local markets that you may otherwise struggle to reach. 
• Have greater control over your client transactions
  • Using cryptocurrency removes the need for multiple touch points. As shown in the above diagram, the transaction takes place one-to-one on the secure network. The transparent nature of the transaction makes it simpler for you to establish audit trails and means money can often be moved faster. 
• Unlock a new revenue stream for your business
  • Using cryptocurrency can reduce payment processing fees as it has lower transaction fees than certain cards. And because of the permanent nature of transactions, chargeback risk is eliminated.

The Pavilions Hotels & Resorts partnered with Coindirect to enhance its guest experiences by becoming the first global boutique hotel group to accept Cryptocurrency from any country for hotel bookings, leading the tourism industry into the future of secure online payments.

By adopting crypto payment processing, The Pavilions Hotels & Resorts are able to future-proof their acceptance strategy, providing enhanced choice to existing customers, and attracting an entirely new demographic of paying customers.

Future-proofing your payments strategy to retain and grow your customer base is only part of the reason that incorporating a crypto processing solution made sense for The Pavilions Hotels & Resorts. The solution adds huge value operationally, which makes it more than just beneficial to the consumer. Through Coindirect’s platform, The Pavilions Hotels & Resorts will be able to speed up settlement times to same-day – reducing the working capital constraints of existing payment rails, optimise margins by reducing processing costs, and unlock access to broader geographies and markets while reducing FX exposure.

If you’d like to learn more about this use case, you can do so here. 

Coindirect is a global cryptocurrency services provider with security and efficiency at its heart. Serving fast-growth businesses and individuals, we harness the power of cryptocurrencies to create new ways for our customers to achieve their financial and wealth management goals. Our payment services enable corporate and private clients to process international payments and settle foreign exchange transactions quickly, easily and with minimal costs.

If you’d like to learn more, get in touch: jonny.griffith@coindirect.com