Have you heard of Ethereum, Binance coin, or stablecoins like USDT, USDC, BUSD, etc? Those are all Altcoins. So, what are Altcoins, and how to apply them in the fintech industry, especially in international payments and remittances?
Altcoins are all cryptocurrencies other than Bitcoin, as the name suggests, alt stands for "alternative". Different types of Altcoins have their own characteristics, different technologies, and different uses. Each altcoin usually has its own network, its own technology, and its own intended use. Some popular altcoins in the cryptocurrency market include Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Dash (DASH).
As a business specializing in remittances, FinFan has many articles on this field, especially on the transfer and receipt of remittances in fiat currencies.
With these articles about remittance in fiat currencies, we know that this industry can help not only developing countries but also developed countries that need this amount of money to develop their strengths more quickly such as tourism, technology, etc.
So why must stablecoins be present? Can't people use Bitcoin to transfer remittances? The answer will be yes, but there will be huge fluctuations in price, causing the amount deposited and the amount received to no longer be equal.
Do you still remember Bitcoin's massive dump from $60,000 to $30,000? What if you placed a money transfer order right at that time? Perhaps the recipient can only receive half the amount you want to send or less.
In the article about the definition of stablecoins, FinFan gives you detailed information about these coins as well as a detailed listing of some of them.
The nature of stablecoins is to prevent price manipulation and market speculation, while also making money transfer easier.
By staking the value of a coin with the value of fiat currencies or a fixed asset such as gold, silver, or even oil, it will help users always determine the value of the coin, and at the same time make the most accurate decisions for yourself in converting cryptocurrencies to fiat (specially to Vietnam).
Up to now, major exchanges have accepted payment in fiat in many different forms such as cash on delivery, credit cards, debit cards, VISA cards, e-wallets, etc.
All of these forms are mostly integrated, and customers can choose the form that best suits them to make payment for the product or service they have chosen.
These payment methods are very convenient; however, they have a unique drawback: information security for users when they are required to enter detailed personal information about account numbers and CVV codes as well as some other information.
The theft of so much information from major websites and social networks has caused the world's leading technology companies to face the hearings of the century from the US Congress, such as the owner of Facebook, the CEO of TikTok, the CEO of Alphabet, etc.
Payments in altcoins are often made on NFT exchanges combined with smart contracts. However, recently, many e-commerce platforms and multi-utility apps have started using crypto as a payment method.
However, recently, many e-commerce platforms and multi-utility apps have started using crypto as a payment method. Grab's story in Singapore is a typical example of integrating blockchain and crypto technology into a multi-utility application.
PayPal's issuance of stablecoins will greatly affect traditional e-commerce sites because currently, many sites are using PayPal as one of the payment methods for them.
Currently, with fiat money, peer-to-peer lending in some countries like Vietnam is still unclear in terms of its ability to operate due to some legal issues and verifying the credit level of both the senders and receivers.
This market has been shared by FinFan in the article Exploring the Exciting Use Cases of Decentralized Finance (DeFi) – Part 1