July 20: The world has seen myriad use cases when it comes to cryptocurrencies. From staking to NFTs, to in-game tokens and DeFi participation, the possibilities are endless and limited only by our imagination.
Most importantly, the birth of digital currencies reimagined something which 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 spur growth and innovation in payment systems, allowing for faster, cheaper payments.”
This report also cited a previous report by the World Bank in 2020, stating, “This is especially important for cross-border transfers, which can take several days to clear, and carry high fees. These fees and delays are a burden on low- and middle-income countries, which receive financial support from remittances.” The estimated average transaction fee for a remittance is at 6.5%, according to the same World Bank report
In the course of supporting the Indian market and other emerging economies, XREX has seen an influx of stablecoin usage in payments and as a gateway to trading cryptocurrencies. Since its product launch in 2020, XREX has facilitated hundreds of thousands of BitCheck transactions for cross-border merchants and crypto traders alike. BitCheck is a digital escrow service powered by XREX, ensuring the safety of funds until both parties in a transaction fulfill their end of the deal.
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 extra 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 signing on the document.
Adding a contract to the escrowed Bitcheck further reduces counterparty risk. One example is using a contract for a fiat-crypto transaction. The receiving party can include terms such as ensuring that the crypto is not obtained from illicit means. The seller must sign the undertaking; the burden of responsibilities lies on the party who will send the crypto. This is just one of many ways parties in a transaction can benefit from an added contract.
USDT and USDC stablecoins have become an important medium for merchants 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 as a gateway to trade cryptocurrencies.
While P2P transactions seem to have gained popularity with users looking for ways to purchase cryptocurrencies, it has not been without risks. Users have reported unfilled P2P deals that resulted in a loss of funds, or a foreign counter party that sent crypto acquired via illegitimate means. This is where BitCheck and the BitCheck contract come into play.
At XREX, all users go through strict verification processes to ensure the legitimacy of their identities. Furthermore, the escrowed BitCheck will require both buyer and seller fulfill their terms of the deal before funds can be released to the other party. With BitCheck, strangers in a transaction can simply trust escrow technology without actually having to be acquainted with 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 for being part of illicit transactions will be blocked automatically by XREX from completing the withdrawal.
These are ways to ensure that only legitimate users who are responsible and aligned with XREX’s vision on enabling financial inclusion with cryptocurrencies will be able to transact on the platform. And now with the BitCheck contract, transaction details agreed upon are documented with both parties’ signatures in verified names — which make business transactions and P2P deals 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 can benefit from this innovative technology, further opening up more possibilities to benefit a wider population. BitCheck and the BitCheck contract are another example.