Corporate Remittance Payment through Blockchain Network
The concept of blockchain is quite novel. Bitcoin is itself capable enough to show the true power of this technology. Bitcoin is thought of as the main digital currency which follows the concept of cryptography.
The payment needs of various corporates are multifaceted and diverse. In such as a scenario, Blockchain Network provides a safer and more secure way to conduct cross-border payments, money transfers, and remittance. The low transfer cost of transactions with cryptocurrencies work in favour of corporate houses. Here are some of the reasons for which corporate houses can use the blockchain network for remittance by using products such as HC Remit, offered by California-based company Hashcash Consultants.
No more transfers by wire
The current financial system of corporate houses relies mostly on wire which is supported by financial institutions and traditional banks. These transfer systems are good but the main problem regarding it is that huge time is taken for the transactions to be processed. But companies which are based on the blockchain technology offers a system that is secure and real-time for cross-border remittance payment.
Disruption in the developing world
Due to such advanced innovation, developing countries are booming at a faster pace. There are many countries where the banking infrastructure is poor. The remittance can be paid through blockchain networks and cryptocurrencies as this technology allows instant processing of payments.
Processing fees are cheaper
There are lots of corporate houses who send money internationally on a regular basis. Thus the processing fee adds up significantly to the cost. This monopoly of traditional banks is removed by the blockchain technology which results in making the processing fees almost non-existent. Today, it costs a corporate around 7.5 percent of the total transaction amount to send money overseas. Corporate houses are saving around 60–70% of that cost using the blockchain technology.
Increased Transparency while maintaining privacy
Blockchain technology facilitates a high level of privacy by ensuring that the details of the financial transactions are shared only with the participants involved in the related transactions. At the same time, a regulator can intercept a blockchain to validate that the parties are abiding by the regulatory and compliance laws as set forth. This level of transparency while managing privacy in the economic infrastructure has proven significant for the B2B realm. The elimination of third-party involvement has made blockchain network well-accepted by some of the largest banks and financial institutions worldwide.
Immutability in blockchain
“Immutability in blockchain” means once a data is stored or recorded in the blockchain network then it cannot be changed in the future. This feature guarantees permanent storage of every single financial transaction occurring in the blockchain network. The banks, corporate houses and financial institutions enjoy the benefit of immutability which assures tamper-proof, unaltered data for the safekeeping of financial records in the blockchain network.
Secured and impenetrable financial data storage
Blockchain technology offers high-end security which is impenetrable by hackers. The data cannot be compromised as hacking into a blockchain network means overcoming the computational power of 51% of nodes. Due to this reason, more organizations are opting for corporate remittance by blockchain technology as it protects them from the fraudulent activities which are existing in the financial infrastructure of many countries.
