How would crypto have solved this ?
Can she do business accepting only bitcoin ?
How does crypto accounting work ?
A crypto payment processor allows setting up a payment gateway like Paypal, but accepting USDC instead. When accepting payment, the amount is deposited into the business owner's own wallet. The business owner can choose to accept payment in USDC. USDC is a ERC20 token, each backed by 1 USD or Treasury equivalent, operated by Circle, registered with FinCEN and dozens of other regulators, with monthly reports published by Grant Thornton. USDC token is available for use on the Polygon network, where a transfer costs between a tenth to one cent.
The main advantage over Paypal using the above process involving USDC on Polygon is, she can run her business via a wallet she controls without worrying about a clumsy corporate locking up her funds, and lower transaction fees.
The main disadvantage is - her customers must use USDC on the Polygon network - and adoption of crypto for ecommerce payments, let alone on a specific network like Polygon, is still early.
By holding the funds in the business' own wallet, if the payment provider suspends services, the funds are not seized by default - and not having liquidity immediately seized during the crucial moments where the business is suspended have important advantages for many businesses.
The payment provider and the bank are separate. It seems to me that you could substitute the word “bank account” for “wallet” in your second paragraph and it would still be true. Bank accounts have very well proven reliability at this point, plus the fact that currency in a bank account does not fluctuate in value like a stock. So again, it’s hard to see how that virtue is unique to cryptocurrency.
