Crypto based remittance service

Assalamualaikum

Greetings to you all!

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Crypto based remittance service are revolutionizing coss border payments.Remittance industry has been plagued by more cost from long time, more times for processing and restricted level of accessibility. But regarding emergence of cryptocurrency and blockchain we can say that they have paved different ways for much efficient, effective for fees and inclusive solutions.

Traditional remittance Challenges

• Traditional remittance services most often take over much cost so eat funds of recipients.
• Cross border transactions may take many days or even weeks for settling.
• Many areas don't have accessibility to traditional remittance services.
• Transactions which are cash based are vulnerable for theft and frauds.

Crypto based remittance benefits

• Crypto transactions may incur in a significant way by minimizing fees in comparison of traditional remittance services.
• Blockchain technology is used for enabling near instant settlements.
• Remittance services which are crypto based may access underserved regions.
• Crypto transactions are safest, clear, and tamper-proof.

Working of crypto based remittance service

• First sender may converts fiat currency to cryptocurrency.Then transactions processing occurs when crypto transmitted to digital wallet of recipient.Then exchange and settlement step comes in which recipient may exchange crypto local fiat currency.

Crypto based remittance players

• Cryptocurrency exchanges
• Remittance platforms like Ripple, Stellar etc.
• Digital wallet providers like Blockchain, Coinbase etc.
• Financial institutes like banks, microfinance institute etc.

Successful implementations

Ripple's xRapid

Financial institutes of partners are used for facilitation of cross border payments.

Stellar's remittance platform

These are used for enabling minimal costs and real time transactions.

WorldRemit

These are used for offering crypto based remittance services in more than 150 countries.

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Challenges and future directions

• There is definitely a lack in clear regulations which may restrict diverse adoption.
• Crypto based remittance services may be used for scaling for meeting growth demand.
• Enhancing awareness related to cryptocurrency and blockchain.
• Seamless integration of crypto based remittance with that infrastructure which is in existance.

Conclusion

Crypto-based remittance services ability to revolutionize cross-border payment landscape, offer fastest , cheapest, and secure Financial inclusions and adoption may be increased in future if technology will continue to innovate and grow.

Have a blessed day