With all our recent focus on trading cryptocurrencies it’s important to remember that the original use case for blockchain was as a payment network. Now bitcoin payments processor BitPay Inc. is reporting that forex traders and brokers are still turning to bitcoin for this purpose.
BitPay allows forex firms to accept bitcoin payments and receive EUR, USD, or other local currency settlement to their bank accounts, without the risk of bitcoin’s price volatility. The service is already known to be used in Europe by FXPrimus, Axiory, ShiftForex, and Golden Capital FX in Latin America.
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Explaining the reasons for its adoption, BitPay says that bitcoin is especially valuable for forex traders in developing countries which have limited access to wire transfers or credit card payments. It settles faster and more cheaply than any wire transfer. And unlike credit card payments, bitcoin transfers can be as small as one dollar, and they are not subject to the frequent credit card declines which affect forex traders from developing countries. For the firms, bitcoin removes the cost of credit card fees and the risk of chargebacks on what are typically large payments, reducing the cost and effort of processing deposits from traders.
“Bitcoin isn’t just one of the most interesting currencies trading today on forex platforms – it’s also a payment technology that can add unique value for trading platforms that process large payment volumes,” BitPay’s Chief Commercial Officer Sonny Singh commented to Finance Magnates. “We’ve seen repeated interest from forex platforms who want to reach international customers, and BitPay provides them a risk-free option to accept international payments.”
Back in January we reported that Carl Stern, the former CEO and Chairman of Boston Consulting Group, has been elected to join the board of directors at BitPay. CEO Stephen Pair framed the hiring as a move that would further demonstrate his company’s commitment to financial world, as it seeks to expand bitcoin adoption among global merchants in the sector.