You can send shipments with crypto-coins without using platforms like Coinbase | CryptoNews



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On April 2, the exchange house of crypto-activists, Coinbase announced the creation of a strange remittance service. The idea is for users of your platform to use the dollar-based XRP or cryptoactive created by Circle and the company, USDC, to send international shipments without commission as long as the fund recipient also uses an account within the platform. of the operator.

The company claims that this new service allows this type of operation much faster than through the traditional system, but also more efficiently than other crypto-coins due to the speed of confirmations of their transactions and the low price of their commissions. , is right?

An alternative to Bitcoin

The reality is that Coinbase is not innovating with this new service. Cross-border payments, which are global in scope and resistant to censorship, can be made with bitcoins, but without intermediaries, as in this case. A global value-trading system, which is Bitcoin, which has been used to ship remittances for years, offering a fast vehicle for this purpose.

With that in mind, one might ask why choose XRP and USDC over BTC. Are there other interests besides offering a "faster" and "cheaper" service, as they say of the exchange office? Why these and not other crypto-coins?

Also, when performing this type of transaction, is the speed or irreversibility of transactions preferable? Why would someone choose to use a centralized service to send shipments using tools designed to dispense third parties? Or do these crypto-actives have no such purpose?

These "no commission" services only work across platform users, and the primary incentive is that recipients can receive their funds directly in fiduciary cash. These crypto-assets are difficult to settle, so Coinbase becomes an essential (and centralized) actor in the remittance system. If the idea is to benefit users, why not choose a highly liquid option like BTC, which can be exchanged even in P2P portals?

The "convenience" of using the new Coinbase service

The USDC is a dollar-based cryptoactive created by Circle, a Coinbase business partner, so the company offers this currency as a competitive option. If it is to avoid the volatility associated with BTC, would not it be better to use other crypto-active agents anchored in the ecosystem? In addition to the business interest of the company, what real competitive advantage does your USDC offer for shipping remittances?

XRP and USDC may be better suited for smaller international money transfers due to faster processing and lower transaction fees. The USDC also has the added advantage of being exchangeable for one US dollar, rather than being volatile in price, like other encrypted currencies.

Coinbase

In addition, the company repeatedly suggests the "advantages" of using its services, that is, beyond the potential of the crypto-coins themselves. is your service structure that provides true value to the users, is this true or just a marketing trick?

It should be noted that when operating as a token in the Ethereum network, the mobilization of funds in the USDC is not exactly cheap (the price of switching the token and gas from the transaction in the Ethereum should be spent), so in the long run the "zero commissions" service should change its model to be profitable.

And XRP? The criptomoeda, focused on corporate and bank profile clients until recently, had been virtually ignored by this house of change. However, suddenly all the potentialities of the cryptoactive stand out, even over other options. Because? What is the point of promoting this encryption?

https://i2.wp.com/cdn.pixabay.com/photo/2016/02/11/23/24/ballots-1195013_960_720.jpg?resize=960%2C640&ssl=1

Among the multiple encrypted options for sending shipments, Coinbase chose only two. Source: joelfotos

Although the argument for the competitiveness of these crypto- natives over traditional shipping instruments may be true, to suggest that these are the best options in the crypto market is based only on (unclear) Coinbase criteria.

Given the operation of this remittance service, customers are not affected by the cryptomoeda that the exchange house uses in this system, once these transactions are settled in trust money, why choose these cryptographic assets more than for the convenience and disposition of the own company. company?

With Bitcoin, you can send payments globally, without relying on third parties (such as Coinbase) for these transactions. As the cryptoactives are more liquid, users can receive their funds in the BTC and resolve them in several exchange offices or P2P exchange platforms. Do we really want to use tools to decentralize the exchange of values ​​through centralized services like the American company?

Image Posted by: sorapop / stock.adobe.com


Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CryptoNoticias.

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