E-Crypto News talks to Wayne Huang, CEO of XREX on Cross-Border trade
Growing foreign exchange shortage has always been an issue. The COVID-19 pandemic has made things a lot worse for businesses that need foreign inflows to enable their businesses to operate seamlessly.
Cryptocurrencies and other digital assets in their various forms have enabled the international transfer of capital to become easy and seamless.
However, one problem has been the lack of exchanges that can offer fiat withdrawals for everyday people.
Recently, the blockchain trade technology company XREX launched MyXchange. The first of its kind, MyXchange is a blockchain-as-a-service that allows just about anybody to start a cryptocurrency exchange easily.
All he or she has to do is follow a few simple steps.
Wayne Huang, Co-Founder, and CEO of XREX
- Congratulations on MyXchange Launch! What are the benefits for those who want to launch their cryptocurrency exchange on the go?
XREX benefits licensed MTOs, MSBs, and merchants that need to execute B2B payments across emerging economies but have issues due to the lack of dollar liquidity and are in need of crypto solutions.
XREX allows organizations to focus on building their core business functions and not have to waste time and money in developing, maintaining, scaling, and securing their own exchange.
Without XREX, if one were to outsource their exchange development and operations they would need to find a Managed Exchange Service Provider like AlphaPoint or OKEx and then find banks to support the exchange.
Developing the exchange in-house would require finding an exchange stack, liquidity providers, wallet providers, KYC providers, AML providers, and banks. Instead, XREX takes on this entire process.
With XREX it takes FinTech merchants 3 minutes to launch their exchange, for free.
2. What is the difference between MyXchange and other similar products?
The difference between MyXchange and other products is cost, security, and convenience
. Exchanges like AlphaPoint and ChainUp are able to launch moderately quickly, but with a high cost while Binance, OKEx, and Huobi are slow to launch and costly. Using XREX is low cost and launching is significantly faster.
- 3. Is MyXchange a white label service? What makes it so or not so?
When the industry talk about a white label service, we usually mean a “managed exchange services provider” (MESP) such as AlphaPoint.
A MESP will custom-build an exchange for a client, and then operate that exchange for the client. An MESP project can easily cost $1M.
XREX is SaaS — you launch your exchange online, in 5 minutes, for free. There’s neither upfront fee nor contract negotiations required.
4. What benefits can cryptocurrency exchanges bring to cross-border trade at this time?
Crypto can be used to acquire USD, just as exporting gold can achieve the same effect
5. Do you think that we are seeing a shift from physical forms of fiat money to digital forms? What are your thoughts on Central Bank Digital Currencies (CBDCs)?
Most fiat money is already digital
CDBC should be seen as “digital cash.” Cash does not require banks to be held.
Similarly, CDBC will make it much easier for merchants in emerging economies to access stronger currencies such as USD or RMB because CDBC does not require support from local banks.
CDBC will allow stronger currencies to enter weaker jurisdictions.
6. What are your thoughts on the emergence of Stablecoins? What role do you think they will play in the future as regards cross-border trade? Will Stablecoins compete directly with Central Bank Digital Currencies (CBDCs)? Please tell us the reasons for your answer.
Stablecoins, commercial or state-issued, will be an extremely useful tool for merchants in emerging markets to access stronger currencies. This is because stablecoins and CDBCs are like “digital cash.”
Cash bypasses banks. CDBC achieves the same purpose. Local merchants will not require support from local banks, in order to access stronger currencies.
7. How will MyXchange help improve foreign exchange liquidity in cross-border trade? Can you give us a simple scenario of how this will work?
An MTO launches a local MyXchange
A client (a local merchant) can use local currency, buy crypto (BTC, XRP, USDT, etc) from this MyXchange owner, by leveraging our Escrowed BitCheck. Then, sell on the MyXchange for USD.
The merchant can now withdraw their USD
8. How can anyone start a MyXchange business? What steps do they need to take?
Setting up MyXchange is rather simple. 1) Sign up to XREX and pass KYC. 2) Launch MyXchange in 5 minutes for free. 3) Generate an invitation link and invite clients to trade on the exchange.
9. Do you think digital currencies will ultimately replace fiat currencies? Please tell us the reasons for your answer.
Most fiat currencies are already digital.
We don’t believe cryptocurrencies will
For governments to help stimulate and balance economies, we are still most experienced in using fiat currencies as a tool to control monetary supply.
So fiat currencies aren’t going away in the foreseeable future.
But certain crypto, such as BTC, will be used more and more like gold — as a long term store of value.
At the same time, stablecoins and CDBC will be used more and more to replace paper cash.
10. Can you describe the future international economy in say one decade from now?
CDBC will make it a lot faster for stronger currencies to penetrate into weaker sovereignties. Many weaker sovereignties will lose their own currency, as their citizens select to use a stronger global currency.
Stronger currencies that have powerful support of either stablecoins or CDBC, will become global dominant currencies; likely USD and RMB.
About Dr. Wayne Huang
Dr. Wayne Huang is Co-Founder and CEO of XREX Inc.
Before founding XREX, Wayne served as VP Engineering to Proofpoint (NASDAQ: PFPT), where he spent 5 years building and growing TAP (Targeted Attack Protection) from 0 to $350M+ in ARR (annual recurring revenue), servicing 9 of the top 10 US banks, and 56 of Fortune 100.
Prior to Proofpoint, Wayne was Co-Founder and CEO of Armorize Technologies, which was successfully acquired by Proofpoint in 2013.
Wayne frequently speaks at cybersecurity and blockchain conferences, including:
ABS 2020, 2019, Chain-in 2018, BLOCKConscious Summit 2018, SecTor 2018, Blockchain Technology Conference 2018, Swiss Cyber Storm 2018, BlackHat US 2010, BlackHat APAC 2017, DEFCON 2010, RSA USA 2007, 2010, 2015, 2016, RSA APAC 2015, Hack in Paris 2017, Troopers 2016, AusCERT 2016, Virus Bulletin 2016, SteelCon 2016, Hack.lu 2016, HackFest 2016, SyScan Taiwan 2008, 2009, OWASP Asia 2007, 2008, Hacks in Taiwan 2006, 2007, WWW 2003, 2004, and PHP 2007.
A diligent blogger about cyber threats, Wayne’s research has received worldwide media coverage, including reports in Reuters, Forbes, IDG, USA Today, Wired, Dark Reading, The Register, The Hacker News, HackerNoon, SC Magazine, eWeek, Threat Post, CSO, and Krebs on Security.
Wayne received a Ph.D. in EE from National Taiwan University, and a BS and an MS in CS from National Chiao Tung University. He holds two US patents on source code analysis.