Cryptocurrency is exploding as a primary source of remittances, all over the world. A survey of 707 people who sent money from the United States revealed an interesting trend in the growing influence of cryptocurrency. An investigation conducted by a cryptocurrency company called Clovr, deepens people's habits of remittance, what money is used for and what methods they use to do it.
In 2017, about $ 150 billion was sent from the United States of America to individuals from other countries. The main countries receiving the most remittances from the United States are Mexico, China, India, the Philippines, Vietnam, Guatemala. Remittances in Mexico alone were observed at around $ 30 billion. No European country has reached the top ten list.
More than half of the people interviewed said they used PayPal and money transfer services like Western Union and only 15.8% of cryptocurrency used. 25.7 percent prefer traditional bank transfers or credit union, 12.2 percent use prepaid cards, 11.8 percent of checks or postal orders by mail. Other popular methods included online money order, cash by e-mail and bank transfer via post office. Although, comparatively, less than a quarter of the people interviewed used cryptocurrency, the satisfaction rate is much higher, and it is inevitable that this method will soon reach a couple of years.
The main advantage of the criptos is that they avoid the high transaction fees and conversion rates typically associated with the transfer of funds abroad. The online money transfer methods only apply about 6% of the average cost, while traditional banks apply around 10% of the same amount. Customer satisfaction was 93.3% for online services, 84.1% for money transfer services and 73.3% for traditional bank transfers. Only 1.3% of people were more dissatisfied with online methods than about 15% for traditional cable transfer. The survey indicates that the money transfer industry is "mature for the interruption" through the introduction of solutions based on cryptocurrency. Experts say that cryptocurrency could potentially offer a cheaper and faster way to transfer funds.
Virtual assets like Bitcoin have become a household name in recent years. The report states that some of the world's largest companies, such as Microsoft and Starbucks, currently accept cryptocurrencies as a form of payment and this should instil confidence in the use of these new forms of payment for sending remittances.
Experts remain firmly convinced that this is the future. Governments, all over the world, are grappling with the understanding of technology and the passing regulation on the same, but a few years along the lane, the payments of blockchain and cryptocurrencies would be "the main ship of remittances," the report concludes.