Clavis Fintech Says Blockchain Will Simplify and Secure International B2B Payments

Small and medium-sized enterprises (SMEs) will greatly benefit from increased simplicity and security by using blockchain technology to make international business-to-business (B2B) payments, Clavis Fintech Founder Kazi Monirul Kabir says.

According to Kabir, B2B payments in the traditional banking system rely on correspondent banks to get money to change hands, sometimes requiring multiple steps. These banks charge fees for almost every step along the way, increasing the cost of doing business. By using blockchain, businesses can cut out the correspondent banks, making the payment process simpler and cost less.

Kabir also says that, despite what skeptics may think, blockchain is also much more secure, because each transaction is easier to trace and verify.

“Each transaction on the blockchain is unique. There is no way to hide from and to where the payment is going. The entire blockchain’s ownership is decentralized. You may fool one owner, but you cannot fool the entire chain. So that’s why it’s very transparent and secure.”

Kabir clarified that B2B blockchain payments are different from illicit cryptocurrency trading, which can be used for money laundering, cybercrime, or terror financing.

“B2B blockchain payment uses fiat currency, transforms it to a stablecoin cryptocurrency, then exchanges it back to fiat.”

Kabir believes that it is important for SMEs to adopt blockchain for B2B payments because these businesses are the main drivers of the economy. Many large businesses are mostly satisfied by the traditional banking system and have the scale to absorb higher costs. On the other hand, SMEs need all the help they can get.

“Small and medium businesses are responsible for the largest chunk of economic activity around the world, and they are the main drivers of economies and growth. As the world goes into post-pandemic recovery mode, these companies are becoming more and more relevant. While the payments they make…