The world has seen a myriad of use cases when it comes to cryptocurrencies. From staking and NFTs, to in-game tokens and DeFi participation, the possibilities are endless and limited only by our imaginations.
More importantly, the birth of digital currencies has reinvented something that our livelihoods and way of life have long depended on: payments.
According to a report by the US Federal Reserve, stablecoins (such as USDT and USDC) “have the potential to drive growth and innovation in payment systems, enabling faster and cheaper payments” .
This report also cited a previous World Bank report in 2020, stating, “This is particularly important for cross-border transfers, which can take several days to clear and incur high fees. These fees and delays are a burden on low- and middle-income countries, which receive financial support in the form of remittances. The estimated average transaction fee for a funds transfer is 6.5%, according to the same World Bank report.
As part of supporting the Indian market and other emerging economies, XREX has seen an influx of use of stablecoins in payments and as a gateway to cryptocurrency trading. Since launching its product in 2020, XREX has facilitated hundreds of thousands of BitCheck transactions for cross-border traders and crypto traders. BitCheck is a digital escrow service powered by XREX, ensuring funds are safe until both parties to a transaction fulfill their end of the bargain.
This month, XREX launched an add-on feature on BitCheck. XREX users can now add a contract when sending a BitCheck. The contract is an additional layer of protection for cross-border payments and crypto P2P transactions, allowing both parties to include the agreed terms, warranties, representation and other important information and sign the document.
Adding a contract to the escrow Bitcheck further reduces counterparty risk. An example is the use of a contract for a fiat-crypto transaction. The receiving party may include conditions such as ensuring that the crypto is not obtained through illicit means. The seller must sign the commitment; the burden of responsibility lies with the party that will send the crypto. This is just one of the many ways parties to a transaction can benefit from an additional contract.
USDT and USDC stablecoins have become an important way for traders to transact in a safe, fast and low-cost environment, as well as for crypto traders who use stablecoins as a reliable store of value and a gateway to trade. cryptocurrencies.
While P2P transactions seem to have grown in popularity with users looking for ways to buy cryptocurrency, it hasn’t been without its risks. Users reported unfulfilled P2P transactions that resulted in a loss of funds, or a foreign counterparty sending illegitimately acquired crypto. This is where BitCheck and the BitCheck contract come in.
At XREX, all users go through strict verification processes to ensure the legitimacy of their identity. Additionally, blocked BitCheck will require both buyer and seller to meet the terms of the agreement before funds can be released to the other party. With BitCheck, strangers in a transaction can simply trust the escrow technology without having to know the other party.
XREX’s proprietary Risk Level Detector informs users of the threat level of the crypto wallet they are dealing with. Any withdrawal address that has been flagged as part of illicit transactions will be automatically blocked by XREX to complete the withdrawal.
These are ways to ensure that only legitimate users who are accountable and aligned with XREX’s vision of enabling financial inclusion with cryptocurrencies will be able to transact on the platform. And now, with the BitCheck contract, the agreed transaction details are documented with signatures of both parties in verified names, making business transactions and P2P agreements much safer and more transparent.
The application of stablecoins and cryptocurrencies is endless. XREX is committed to creating a safe and clean environment, so that more people can benefit from this innovative technology, opening up more possibilities for the benefit of a wider population. Another example is BitCheck and the BitCheck contract.