Part two … Speed and Cost of International transactions If Speed...

Part two … Speed and Cost of International transactions

If Speed and Cost are the primary considerations, then as of 2021:Cryptocurrency Transactions would generally have the advantage:

1. Speed: Cryptocurrencies like Bitcoin Cash, Litecoin, or some newer blockchains offer fast transaction times regardless of geographic distance. Transactions can often be confirmed in minutes, and even the slower Bitcoin network typically settles within an hour or so (though it can be longer if the network is congested).

2. Cost: While the costs for transactions on networks like Ethereum or Bitcoin can fluctuate and become expensive during peak times, other cryptocurrency networks maintain relatively low fees. Utilizing layer-2 solutions or alternative cryptocurrencies with lower fees can reduce costs. Also, cryptocurrencies bypass traditional banking systems, which might involve multiple intermediaries each taking a fee.

However, there are caveats:

• Volatility: Cryptocurrencies can be volatile. This means the value could change between initiating the transaction and its receipt or conversion to another currency.

• Liquidity: Depending on the cryptocurrency and the region, converting a cryptocurrency back to fiat can have associated costs or delays if liquidity is an issue.

• Regulatory Environment: The regulatory environment for cryptocurrencies is still evolving. In some countries, there might be restrictions or additional costs related to converting crypto to fiat or vice versa.ISO 20022-compliant Transactions through traditional banks:

• These are generally slower for international transactions, often taking several days for cross-border transfers.

• There might be multiple fees involved: from the sending bank, intermediary banks, and the receiving bank, plus currency conversion fees if applicable.

In summary, if speed and cost are the sole considerations, cryptocurrencies would typically offer a more efficient solution for international transactions as of 2021.

However, users should be aware of the specific cryptocurrency’s dynamics, liquidity in both sending and receiving locations, and the current regulatory environment.

Cheers Anton

PS. DYOR - opinions are not facts but can facts be opinions?