A Case Study on International Business in Developing Economies
Introduction
In today’s global economy, businesses are constantly seeking innovative solutions to overcome the challenges of international trade. One such solution gaining traction is the use of stablecoins, a form of cryptocurrency designed to maintain a stable value. Independently of the technical choices behind one stable-coin or another, what always remains is that a stablecoin’s value is always pegged to a state currency.
In this post, we’ll explore the transformative potential of stablecoins for international business, focusing on developing economies such as Nigeria—a country with numerous businesses in the world of e-commerce and online services. These countries are typically the type that would benefit greatly from stablecoins to connect businesses across borders throughout Africa.
Understanding the Business Landscape in Developing Economies
Developing economies, like Nigeria, are characterized by a vibrant ecosystem of businesses operating in the digital realm. From e-commerce giants like Jumia Group, which connects consumers and businesses across Africa, to digital logistics platforms like Kobo360, facilitating haulage operations across borders, these businesses play a crucial role in driving economic growth and innovation.
However, despite their significant contributions to the economy, businesses in developing economies face unique challenges when it comes to international transactions. Cross-border payments are often cumbersome and expensive, with regulatory hurdles and bureaucratic processes causing delays and inefficiencies.
The Promise of Cryptocurrencies and Salesforce Integration
At the forefront of modern business operations is Salesforce, a powerful Customer Relationship Management (CRM) tool known for its well-organized automation systems. Despite its efficiency, Salesforce users face a significant challenge—the lack of seamless integration of crypto-payments, including stablecoins, into the platform’s accounting systems. This gap presents a barrier for businesses seeking to leverage cryptocurrencies for international transactions.
Because let’s face it: although Salesforce is a powerhouse, it can also drive a team crazy when there are so many different apps interacting with each other to configure. So having a crypto-payment app is really a blessing, here (conflict of interest from the writer of this article? Absolutely! We built Web3 Enabler, specifically because of that, but if you’re reading this, you know that this is our product).
When we started developing Web3 Enabler, we did so for a reason: we wanted “Mike from Sales” and “Janice from accounting” to be able to track down crypto-payments without requiring the whole team to gain expertise in crypto-currencies.
Another classical problem in the field of decentralized payment solutions is the safety issue: who insures lost funds? In the little world of private users, there is a motto: “not your keys, not your coins”, to say that your crypto-wallet has to be yours so that you can keep custody of your funds. But what happens when the wallet belongs to a company?
While this safety practice is interesting for an individual, having multiple people accessing a crypto-currency wallet in a company is properly terrifying… Since it’s a decentralized system, no insurance company whatsoever will cover such a risk. This is again where a solution such as our Web3 Enabler app comes in: only one person has to connect your company’s crypto-wallet to your CRM (we have a knack for Salesforce, but you can fancy another one), and then your whole team can interact with it without ever touching the funds nor accessing the wallet directly.
Case Study: Leveraging Stablecoins for Cross-Border Transactions
Let’s delve into a hypothetical scenario to illustrate the potential of stablecoins in the context of developing economies. Consider a thriving Nigerian export company using Salesforce to manage its client relationships and sales pipeline. Traditionally, the company faced delays and complexities when receiving payments in foreign currencies due to regulatory constraints and bureaucratic processes.
However, by integrating stablecoins into its Salesforce platform, the company streamlines its international transactions. Stablecoins offer stability and efficiency compared to traditional banking methods, circumventing the regulatory hurdles that hindered the use of traditional currencies. Moreover, stablecoins provide a solution to the bureaucratic nightmare of delays in interbank payments, ensuring seamless and timely transactions.
Overcoming Regulatory and Adoption Challenges
Despite the transformative potential of stablecoins, regulatory challenges persist in developing economies like Nigeria. Businesses must navigate these complexities and advocate for regulatory clarity to facilitate the widespread adoption of stablecoins. Strategies such as engaging with regulatory authorities and collaborating with industry partners can help pave the way for a more conducive regulatory environment.
Conclusion
In conclusion, stablecoins represent a game-changer for international businesses operating in developing economies.
By offering a stable and efficient alternative to traditional currencies, stablecoins streamline cross-border transactions and mitigate the regulatory and bureaucratic challenges inherent in international trade. As businesses continue to embrace innovative solutions like Salesforce and cryptocurrencies, the integration of stablecoins into CRM platforms holds immense promise for driving efficiency and growth in the global marketplace.
Which is why we at Web3 Enabler love offering a simple yet practical solution to invoice your customers directly from Salesforce, across countries and across currencies.
