Crypto Based Remittance Services and Solutions
In the last post, I discussed several features of remittance services that can be solved and made efficient through blockchain. Blockchain technology and smart contracts can play an important role in remittance services as discussed in detail in the last post. If you want, you can check that post. Today I will share with you how to make remittance services easier, timelier and more efficient through crypto.
As you know, cross-border money transfers involve exchange rates and various fees. Different countries have different rates and different types of import-export duties levied in different countries, which has a significant impact on the cost of remittance exchange in terms of remittance services. When this remittance service is done through cryptocurrency, many of these problems that we see in traditional remittance services will be solved. In many Third World countries, it is observed that there is no banking channel contact with the remittance receivers. When cryptocurrency-based remittance services are introduced, this problem will be solved very easily as the difficulties involved in cross-border payments will no longer exist.
The highest fees charged for remitter services are mainly for middlemen or middleman financial institutions or banks who do the conversion and transfer. These fees vary from country to country, but many remittance senders accept anywhere from 3% to 20% free. It is a huge fee and on the other hand, it is time-consuming for middlemen. When cryptocurrency is based then there is no need for any middleman as the work will be done instantly i.e. the remittance will be transferred instantly as there will be no conversion involved. It will be in Crypto Currencies ie Bitcoin Ethereum etc. So, it will be one of the best technologies for remittance transfer in a much faster, safer, and more efficient way.
That's why crypto-based remittances are so important because their alternatives in terms of cross-border payments are hard to imagine in the current era. This could be one of the biggest solutions to remittance exchange problems that current remittance services are giving us. Blockchain-based remittance solutions leverage digital assets as a medium of exchange for cross-border money transfers. Individuals and businesses can bypass traditional banking systems and intermediary institutions.
The exploration of stablecoins and central bank digital currencies (CBDCs) is anticipated to drive the mainstream adoption and integration of blockchain-based remittance solutions, fostering a more secure, efficient, and inclusive global financial ecosystem that supports the evolution and advancement of cross-border money transfers.
~ Regards,
VEIGO (Community Mod)
Well written post and carefully structured and good information you have shared here on crypto based remittance services and solutions.