How Will Crypto Currency Revolutionize Remittances?
- By Mohit --
- Wednesday, 06 Jan, 2021
There is a lot of hype about cryptocurrencies and their usefulness, but there's a lot to take in. Ensuring that you understand what cryptocurrency is and how it can be beneficial to your business is an important step. This blog will look at the different aspects of cryptocurrency and why it's an essential development for the future of money.
What are remittances?
Remittances are the money that migrant workers transfer to their families back in their home countries. In 2012, the global average cost of sending $200 was 7.2%, and the average fee of a Western Union transaction was almost 10%. In comparison, the average Bitcoin fee was around 1%. This is why remittances are an ideal use case for cryptocurrencies. With Bitcoin, money can be sent inexpensively to family members in developing countries. Remittances are a $62 billion industry, and over 200 million migrants live worldwide.
How much money is sent through remittances?
Remittance is the money a worker sends home to family and friends. Globally, remittances are a huge industry. In 2017, it was estimated that $466 billion was sent by people living in one country to their family and friends living in another country. In a world that relies heavily on money sent through remittances, it’s not surprising that there is a push for better cryptocurrency methods. Cryptocurrency is a digital currency that uses cryptography to secure transactions and control new units. Bitcoin, the most well-known cryptocurrency, is the first decentralized cryptocurrency and is the most widely used digital currency globally.
How can cryptocurrency revolutionize remittances?
Global remittances are made easier with the help of cryptocurrency. Digital currencies are transferred between peers, created by a process called mining. It is decentralized, meaning no single entity can control it. Cryptocurrency can be sent and received by anyone with a wallet address, similar to email. The most popular cryptocurrency is Bitcoin, which was established in 2009.
What are the issues with remittances today?
One of the most significant features of the internet is connecting people from around the world. However, this doesn’t mean that sending money to other countries is easy. It can be quite expensive and time-consuming. If you work in the United States and have family in another country, you can probably relate.
The process has never been simple. But today, with so many middlemen involved, it has become even more difficult. The process is also risky, especially for those living in developing countries. The World Bank estimates that nearly 2% of all money transfers are fraudulent. These numbers can be devastating for families who depend on these funds for basic needs. The good news is that the new cryptocurrency world could offer a solution.
About Bithashex Crypto Remittance Solution
With Bithashex Crypto Exchange, the transaction fees are low and at the same time, you don't have to worry about your funds getting hacked because we make sure our exchange is secured. We also offer a system that allows our users to earn money by holding their coins in their accounts. Moreover, if you're traveling abroad and need a small amount of money sent back home, then we got you covered with our Remittance Services.
Remittances are a large industry, and cryptocurrency will be a huge part of it. Sending money across the world is no longer a tough thing to do. You can easily do it by using the Internet and your bank account. While this is very convenient, it also is very expensive. Banks charge a lot of money for international transfers, especially for small international transfers. This means that transferring money can be hard on your wallet.