All markets, without exception, are becoming more digital and faster. In the business world, companies seek payment methods that are easier, faster, with less bureaucracy, and lower costs. Therefore, it is not surprising that cryptocurrencies are being viewed as a hub of innovation, with a tremendous capacity to optimize commerce, especially in transactions involving different countries.
Basically, this solution creates new opportunities for organizations and consumers. And the reason is simple: simplifying financial processes. Global value movement becomes more practical and transparent with this feature, as it allows the incorporation of technologies like blockchain and smart contracts.
To illustrate, let's consider two scenarios of the same situation: a national company wanting to buy a Russian oil tanker. In the first scenario, without cryptocurrency involvement, the money would need to be deposited into an escrow account, acting as an intermediary to hold the funds during the transaction, in one of the two countries, as a payment guarantee. In other words, when the ship arrived at the destination, the amount would be released, and a forward exchange operation would occur, bringing risks related to variables such as transport, delivery, and product quality, etc.
In the second scenario, with cryptocurrencies entering the picture, all these steps could be less bureaucratic with the incorporation of a smart contract. The modality itself acts as a payment guarantee due to its instantaneous and secure nature. This way, all parties are on the same page, are less impacted by market fluctuations, and execute the transactions in question without significant difficulty.
More advantages, fewer risks
Despite elevating financial operations to a new level of efficiency, the main concern regarding cryptocurrencies is their volatility. However, we need to understand that this characteristic already exists today, regardless of the use of digital currency.
Primarily because it involves many third parties and a range of global uncertainties, this type of risk is inherent in current commercial relationships. However, leveraging technology to eliminate unnecessary processes in negotiation is a greater advantage than any obstacle that may arise.
Cryptocurrencies remove as many legal complexities as possible from international operations. Programmable modalities can absorb the nuances of contractual exchange rates, leading to greater predictability for what companies can realistically control and plan.
Regulation Day
Following the surge in crypto investments, regulation has become a major global discussion point, ensuring compliance and security in transactions. In Brazil, the only existing legislation for this market currently is Instruction Note (IN) 188, which mandates income tax reporting for Over-the-Counter (OTC) trading services and operators.
With increased investment in the sector, there's a strong need for a more sophisticated process. This would professionalize the segment, as operating companies would need to follow specific standards, bringing more legal robustness for individual and institutional investors.
Many organizations are still hesitant to invest in cryptocurrencies precisely because of the slow pace of regulatory developments. On the other hand, we cannot ignore the technological advancements in quantum computing and generative AI, which are helping numerous companies protect themselves from malicious actors, securing their operations. These tools will be essential in Brazil, given the upcoming launch of DREX, the Central Bank of Brazil's digital currency, scheduled for 2025.
The crypto world isn't something for a distant future. It's already a reality that's beginning to change how businesses operate. Individuals and corporations need to increasingly understand that this is a significant trend in the financial market, one that can propel businesses and entire economies.