Leverage the Power of Digital Blockchain Currencies
The race for the number one digital currency is on in 2020. Unlike in 2018 when Bitcoin was thought to only exist in a bubble, Bitcoin is now seen as an undeniable hedge and a solid investment similar to gold. The DeFi cryptocurrencies later created through smart contracts via the Ethereum network have also created lucrative financial instruments void of any involvement from banking institutions.
Throughout the year, every respective nation has responded to the pandemic differently as the shock arrival of COVID-19 kickstarted a new technology revolution with the advancement of digital money at the forefront.
- Facebook wanted to launch its Libra coin amidst opposition from central banks
- China wanted to roll out its nationally renowned digital currency known as the Digital Currency Electronic Payment (DCEP) by the end of this year
But which one will gain the support of the masses? The once liquid scarce 2018 stablecoin USD Coin or USDC, has recently skyrocketed in popularity due to its recent advancements. In our ever-changing agile business environment, early adopters of new technological advancements will gain an advantage compared to their competitors. Since the COVID-19 outbreak, USDC has risen by 500% in market capitalization and will only continue to increase with more businesses adopting this inevitable social norm.
USDC is currently operating on the Ethereum network and can interact with smart contracts to be much more than a stablecoin that is simply pegged to the US dollar. Originally used as a transparent hedge against volatile cryptocurrency positions, it is now utilized in more varied fields like the DeFi space, which could also be used as collateral for loans. In business infrastructures, it is used to process payment. Financial institutions are also taking part as they convert their clients’ funds to USDC to take advantage of the high APR provided by sophisticated coding and its interoperability with other ERC-20 tokens and their features.
Convenient Uses of a Digital Currency
Blockchain Bank is building on USDC and we have created the first-ever HRM software that deals primarily in USDC. We have created a platform where business essentials such as payroll processing can be handled with smart contracts on the Ethereum network. A business generating cash flow in USD can automatically convert it to the digital equivalent, the USDC. Why let banks make all the money as they lend out your cash balance to other borrowers?
With our innovations, businesses can automatically convert a portion of their cash flow to USDC and securely store those funds at Blockchain Bank. We have built-in compound rates so that your balance will continue to grow and there will be more options to utilize those funds such as processing payroll in multiple currencies.
COVID-19 has accelerated the growth of remote work and employees no longer need to be within commuting distance to their company. Sourcing new talent from overseas may become more difficult as the process of sponsorship and obtaining a work permit post-COVID-19 will take even longer than before. With digital money and a borderless banking system like Blockchain Bank, an individual can easily receive their salary through the blockchain.
USDC will also not be our only method of payment as we will be supporting many other popular cryptocurrencies. Considering the current instability of the USD due to high levels of stimulus aid pouring into the American economy, a decentralized crypto-denominated payment system can boast convenience and avoid volatility.
Common Cases and Solutions with Digital Currency
Consider the following situation where an employer is based in the USA and their employee is based in AUD:
- The employee is not familiar with USD/AUD exchange rates but is bullish on Ethereum and wants to get paid in Ethereum
- Employee negotiates a one year salary to be 2 ETH per week
Through Blockchain Bank, the employer will have multiple options to accommodate this request:
- The employer believes that ETH is currently undervalued at the current market rate of $400 per ETH
- The employer buys 104 ETH (2 ETH x 52 Weeks) at $400 per ETH for $20,800
- Every weekly pay period, the employer pays employee 2 ETH
- When ETH is rising, the employee is happy
- If ETH reaches $1,000, the employee will be getting $2,000 per week instead of $800 (2 ETH x $400 Unit Price of ETH)
- Employer will accrue no additional expense despite paying the employee to double its fiat monetary value
- The employer is uncertain of the price of ETH or believes the price of ETH to be overvalued
- The employer keeps reserves in USDC
- Every weekly pay period, the employer processes payment of 2 ETH
- Blockchain Bank via smart contracts will automatically purchase 2 ETH at the current market price and pay employee 2 ETH during each pay period
- Employer will now have the option to take on the role of a trader and buy ETH on dips before the payment date
Blockchain Bank can make many accommodations and support many different cryptocurrencies. A lot of our business owner clients have also negotiated fiat rates with their respective employees so that they can provide flexibility to their employees.
For example, if an employer has negotiated a weekly paycheck of $800 to be paid out in Ethereum, our backend will automatically purchase $800 worth of ETH or 2 ETH at $400 each via smart contracts, and make a payment of $800 to that individual on behalf of the employer.
If ETH goes back to $1,000, then that would be more than 100% gain on that particular paycheck. This business solution can be very rewarding and engaging. For companies that deal with cryptocurrencies or are a part of the fintech revolution in the realm of digital money, it offers a lot of new features.
Programmable money provides a limitless number of new opportunities for businesses, one of which is sourcing foreign talent that has become increasingly difficult with the emergence of the COVID-19 virus. USDC has increased by over 500% in market capitalization in less than a year and Ethereum has increased over 500% in value from last year’s low of $80 to now over $400. For employers that are looking to process payroll in Ethereum, Blockchain Bank also specializes in Ethereum and we have subsidiaries dedicated to cryptocurrency mining with a limited amount of mining contracts. Please see the link below and sign up for more information: