International Trade And Crypto Real Usage
Two years ago I was having a meeting with an old friend who has a manufacturing business in Johannesburg. He had just placed an order for some new machinery and tools and there had been some delays along the way slowing the process up.
The problem was he needed to order some other things and was told he couldn't by the Reserve Bank. He had unfortunately reached his limit of Forex and could only apply again once his order arrived. How stupid is that as this is preventing foreign trade and from stunting a companies growth that happens to also export products internationally.
He needed my help in order to facilitate the purchase as I do know some of the shadier types of characters and why we were meeting. Getting money in and out the country is a problem legally due to strict rules in place but very possible illegally for roughly the same rate the bank rips you off for their "service" which is absurd.
Crypto on the other hand changes things drastically as all you need is enough stake built in your cold wallet or cash to buy a certain coin. Businesses will no doubt have this facility going forward and presume many will already have it in place and are already doing deals in crypto. This is where business is heading and Governments cannot stop it with their tight regulations using Forex as a weapon of control.
Firstly there are no waiting on decisions to see if you are allowed to buy or not, but the savings made actually will force businesses to buy this way. Forex normally has a fee for it's use which is never on par with the real value so the cost is always inflated plus the additional banking commissions for servicing the deal. Someone buying $1 million worth of whatever it is could easily be paying more than $50 000 in fees which they can now pocket. The ability to do the trade is more important than just the savings in most cases.
I have been meaning to chat with some of my contacts to see if they are involved with crypto and to what extent the business has changed the way they work moving money around the world. They must be and it will be interesting to know so I will do a post after I have a coffee chat.
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