If you’re a large multichannel international iGaming operator, your company already deals with various fiat currencies such as U.S. Dollars, Euros, Great British pounds or even the Brazilian Real.
Adding a Bitcoin SV to your deposit and payout options isn’t a daunting task, but there are a few points you’ll need to consider, and we hope to answer them here.
Bitcoin Price Fluctuations
Exposure to price fluctuations will depend on whether the operator accepts via a payment processor or directly holding Bitcoin SV in your treasury.
Virtual currency payment processing – Admittedly, at the moment, Bitcoin, along with all cryptocurrencies, fluctuates much more than traditional currencies. Your accounting management team will want some stability to better record your revenues. The price swings can mean your players $100 deposit could be worth $120 or $80 in a matter of days unless you mitigate the risk.
One of the ways to handle bitcoin price fluctuations is with a virtual currency payment processor. These companies work much like your traditional payment processors, albeit for a fraction of the cost. These service providers will seamlessly convert your Bitcoin SV to the base fiat currency of your treasury. Most will guarantee you will receive the converted amount regardless of any price fluctuations between the request and receiving your settlement.
Stable Coins – A stable coin is a token pegged to a fiat currency price at a 1 to 1 ratio. Your treasury can convert your Bitcoin SV to a stable coin, and while it’s still in a digital token format, the price will remain steady to that equal to the chosen currency, in most cases, it’s the U.S. Dollar.
Unlike using a virtual currency payment processor, the transaction’s price can fluctuate between your request and conversion to the stable coin. The exchange that provides this service will also charge a small vig to process the transactions. Again, these are all just a fraction of traditional payment credit card and banking processors.
The process would work in reverse to exchange your stable coins back to Bitcoin SV when it was time fund withdrawals or convert to fiat currencies.
How will this affect the speed of deposits and withdrawals for players?
Your treasury will want a liquid float, as you would with your fiat currencies held with your payment processors. You know your players best, so we’ll leave the amount needed up to you, but it would be comparable to the percentage you park with your fiat processor.
If you convert the Bitcoin SV payments into fiat, the speed at which your deposits and withdrawals occur will ultimately depend on the pace at which your bank and BSV-to-fiat service provider process transactions. However, these transactions typically settle within 48 hours of initiation.
If you convert the Bitcoin SV deposits to a stable coin, you will first need to switch from the stable currency to Bitcoin SV before you can honour your withdrawal requests. These typically settle in 20 minutes.
In terms of the speed of your deposits and withdrawals, we covered the speed advantages of Bitcoin payments in this article for your reference.
To find out more about Virtual currency payment processors, please consult our resource directory.