People have been talking about how cryptocurrencies could change payments in a world where banks are expensive and rules are hard to understand. Kate Lifshits, the CEO of NOWPayments, talked about how cryptocurrencies can make transactions easier in Europe’s highly regulated market.
Navigating European Regulations
It can be hard for any business to follow the rules in Europe, especially those that deal with crypto. Kate says that following the rules is very important, and NOWPayments is doing everything it can to do so.
She says, “We know that every country has its own rules.” “That is why we are working so hard to get the MiCA (Markets in Crypto-Assets) rules in place.” It is not enough to just get the right licenses; you also need to be ready for inspections. Our whole compliance department makes sure that everything is in order, from KYC/KYB to keeping track of transactions.
It is not just about the paperwork; it is also about being ready for what is to come. Kate says that having the right tools is very important for following these rules. She stresses this point.
Reducing Fees with Crypto
One of the biggest problems businesses have today is that traditional banking is too expensive. Many people wonder if crypto could be a less expensive option because bank fees can be as high as 10%. Yes, Kate’s answer is very simple.
“Moving money between European countries can cost between 4% and 10% in traditional banking fees,” she says. “But with crypto, the fees are only 0.5% to 1%, which is a lot less. Those fees stay the same no matter where the transaction takes place. You have to pay some fees to use the network, but they are much lower than what you would pay at a bank.”
This could change the way businesses do business that need to pay people in other countries.
Debunking the Security Myth
Another big concern about crypto is security, especially since banks like to brag about how safe their systems are. Kate, on the other hand, says that crypto can be just as safe, if not safer.
“People think crypto is not safe, but that is not true,” she says. “The truth is, it can be safer than banks.” Banks need middlemen, who are people who can make mistakes or get hacked. There are no middlemen in crypto; the blockchain itself keeps things safe.
She then goes on to say that NOWPayments has both custodial and non-custodial models. In the non-custodial model, the money goes straight to the merchant and does not go through NOWPayments’ systems.
“Security is the most important thing here,” Kate says. “Actually, hackers have never been able to get into our systems. Regular banks can not give you this tech-based answer.”
Building Trust with Stablecoins
People who are new to crypto trust stablecoins as a way to get there. Digital currencies like USDT and USDC are stable and are often thought to be safer than cryptocurrencies that change value a lot.
“Stablecoins are like a digital dollar, but their value does not change,” Kate says. “For people who can not get to banks, stablecoins are a way to get into the financial system.” Using USDT or USDC with us does not cost anything in network fees, and it is cheaper than using regular money.
This special deal makes it easier for people and businesses to use cryptocurrency, especially in places where traditional banks are hard to get to.
Crypto in the Gaming Industry
Kate also believes that there is a big chance for the gaming industry to start accepting crypto payments. Adding crypto to online casinos and gaming companies can help them reach more people, speed up transactions, and cut costs.
“Gaming companies can make their users’ experience better by accepting crypto payments,” she says. “The technology is already there to process payments quickly, and it is easier to get new users who already have crypto.”
She also makes an interesting point for businesses that might be worried about losing customers who do not use crypto yet.
“We offer off-ramping, which means that casinos can accept cash payments like USD and still get crypto, like USDT. This way, they can enjoy all the benefits of lower fees and faster transactions.”
This flexibility, according to Kate, allows companies to embrace both fiat and crypto payments, expanding their user base and offering better services.
Final thoughts
Kate Lifshits’ perspective on crypto in the European market reveals just how much potential there is for disruption. By reducing fees, improving security, and offering better access to financial systems, cryptocurrencies are more than just a trend, they’re a business development tool.
“It’s about embracing both sectors, crypto and fiat, and expanding your user base,” Kate concludes. “In a world where speed and flexibility are key, crypto provides businesses with a unique edge.”
Companies in Europe and other places may find that the best way to deal with payment system problems and find new ways to grow is to use cryptocurrency.