Everex | Use Cases

Ever since the advent of blockchain and cryptocurrencies, a specific type of coins has occupied a special place on the pages of digital economic forecasts. The slump in the cryptocurrency market has proven that inherent volatility is the doom of many projects and that even the founding pillars of the entire digital economy are subject to market dynamics. Having monetary rates based on promises of technological development and speculative factors is not a viable course of action for the digital economy and its assets as a whole. As such, stablecoins have emerged as an alternative offering the best of both worlds of traditional and digital economics. Although there are several types of stablecoins, in this article, we will be discussing coins representing digital fiat currency (DFC) stablecoins that are pegged to national currencies and are backed by full reserves under the custody of licensed financial institutions.

New Money For New Users

The prospects of applications for DFC stablecoins are immense, considering the ever-greater expansion of digital assets into the broader masses of users. The convenience they offer in being tied to real currencies, such as the US dollar and the Euro, to which the underlying assets are pegged, ensures their stability and availability in any corner of the globe. In addition, their commission-free nature and their operation on the blockchain provides them with lucrative prospects as both investment assets and as an everyday financial instrument in replacement of conventional fiat.

A new breed of digital asset users is coming to the forefront and their dissatisfaction with legacy payment systems is growing, as it limits their potential. The millennials are rewriting the rules of financial systems with their strive for travel and constant connectivity to the internet. Those who were once digital natives have turned into digital nomads, as an ever-growing number of people are refraining from traditional work in offices and are moving to remote working formats. Such employees are adept at using digital assets, and DFC stablecoins fit the bill as their instrument of choice.

Southeast Asia As A proving Ground

The Southeast Asia region is one of the leading environments for digital nomads with its highly favorable climate, cultural backgrounds and highly progressive infrastructure designed for global accessibility. As many of the digital nomads come from Europe and the American continents, they find it highly inconvenient to work with their native bank cards that charge high commissions for international transfers and the availability of ATMs is limited. Withdrawal fees in foreign countries are also quite biting for the nomads’ wallets. Currency exchange rates are another limiting factor of traditional fiat that is playing in favor of the transition to DFC stablecoins as an instrument for both salaries and payments for goods and services.

Employees are not the only ones in the Southeast Asia region looking at DFC stablecoins as an important asset leading the new economic revolution in the digital space. The abundance of small and medium-sized businesses (SMEs) in the region creates vast, untapped potential for cost reductions by transferring operations onto blockchain infrastructures. SMEs are constantly looking for ways of paying both domestic and international suppliers by passing high commissions. The US is one of the most promising markets for the domestic use of DFC stablecoins along with the Southeast Asia region, and seeking settlements in US dollar pegged coins on blockchain is a highly coveted feature that can be a valuable product for the US economy.

Everex | Use cases of stablecoins in the Southeast Asia region

Tourists traveling to the Southeast Asia region and thousands of expats living across the globe are also prime users of this new financial product. The possibility of avoiding high transfer commissions and bypassing other payment barriers, such as withdrawal fees makes DFC stablecoins a convenient instrument for tourists who do not want to be burdened by the troubles associated with carrying large amounts of cash. By resorting to stablecoins, the expats will be able to save on commission fees and send larger amounts to their home countries, thus contributing to their economic development.

The Everex Solution

One company that has already caught on the trend and established its business for catering to the growing demand is Everex, which has recently started working on stablecoin settlement system. US merchants are the primary beneficiaries of the new payment system that offers clear advantages over constantly increasing credit card processing fees and long settlement times. Such a situation in the industry and the market as a whole has become the norm, but it should not be tolerated in the presence of alternatives, like those offered by Everex. The company has employed this fact as an important competitive advantage for domestic payments inside the US. Among the advantages are up to 1% fees, near instant settlements, and no POS required, only a printed QR code for receiving payments directly. By using the Everex system, US merchants can pay their suppliers and employers with DFC stablecoins instantly without a need to withdraw funds to a bank account first. Indefinite forward can be done directly from merchant’s Everex wallet.

Being located in Thailand, Everex has developed Thai Baht DFC stablecoin as the first product offering of its type to cater to individuals and merchants in the South Asia region. The Thai Baht stablecoin with the THBEX ticker is the original test version of electronic digital currency, the eTHB, that is equivalent to one unit of Thailand’s national currency, the Baht (THB). The Everex stablecoin is powered by Ethereum smart contracts, and is the main component of the Everex Wallet application, which is currently one of a few blockchain wallets that has received regulatory approval on KYC/AML compliance. The Everex Wallet is designed for a global audience with Asian markets in focus. It will allow users to deposit, send, receive and withdraw cash or transfer funds to a bank account in a number of DFC stablecoins representing different national currencies, including the US dollar, Euro, and the Thai Baht. Everex’s native utility token, the EVX, will also be included in the wallet ledger and will function as a service fee payment method. Given that the system operates on the basis of the blockchain, all transactions are fully transparent and immutable, and are available for review to anyone at Ethplorer.

The Everex Thai stablecoin can be used by tourists and digital nomads alike during their stay and work in the Southeast Asia region. At the starting stages of the system’s launch, US merchants can make use of the convenient stablecoin settlement system for domestic payments and appreciate the many advantages offered by the Everex solution.

As Asia is one of the main target markets for Everex, currency exchanges for EU and US travelers and expats living in Asia are an important service the company seeks to develop as a highly attractive alternative to traditional exchange services. Users will be able to save on exchange and withdrawal fees, as well as gain access to cryptocurrency markets through the Everex system and open new prospects in the application of digital assets available for payment and investment.