Saxo Payments CEO: Bitcoin offers FinTechs a number of advantages

Co-founder and Chief Executive Officer of Saxo Payments, Anders la Cour, has recently expressed his views on digital currencies, in an article titled, "Cryptocurrencies - One way to eliminate international payments fees".

He begins by acknowledging that the virtual currency is gaining momentum and recognition suggesting that people, governments and organisations are discovering various ways to benefit from this new payment method.

"Bitcoin is the first and most well-known cryptocurrency and offers FinTechs a number of advantages", he said.

He said that bitcoin eliminates the need for an intermediary such as a bank or credit agency to move money online. Moreover, as Bitcoin transactions are traceable, it makes it almost impossible to introduce fake, new money.

Another benefit of bitcoin is low transaction cost which stems from the fact that no banks or financial institutions are involved.

He added, "They [users] don't need to worry about fraudulent purchases and international payments don't incur conversion fees because Bitcoin doesn't have to be changed into local currency. It also opens up new markets, which may be banned by traditional payment providers due to increased risk of fraud or for political reasons."

He further discussed latest developments related to cryptocurrency, including, the European Court of Justice recent proposal that Bitcoin operations should be exempt from Value Added Tax (VAT), the Greek island of Agistri, which agreed to trial Nautiluscoin in July and Unicef's launch of its own cryptocurrency, Unicoin.

Digital currencies do present some risks, such as high volatility and the hassle of finding suppliers who are willing to take Bitcoin or an equivalent as payment, he added.

He concluded saying, "However, with charities and even governments looking at the possibilities cryptocurrencies offer, it's no surprise that businesses are also considering the benefits of currencies like Bitcoin."