A new report by a research company focused on blockchain states that there was a spike in people using cryptocurrencies to send remittances. This growth is partly due to the high costs incurred when using more traditional methods such as Paypal.
Read also: Seven cryptocurrency trends not to be missed in 2019
Easier, cheaper, faster
The value of remittances sent abroad from the United States is greater than ever. World Bank Data states that over $ 148 billion has been sent abroad from the US in 2017. With an increasingly interconnected world that sees more people than ever move abroad to work and send money home – the migrants seek easier ways to cut costs and avoid getting ripped off by banks and other intermediaries. An effective way to do this is obviously with cryptocurrency. Research firm Blockchain Clovr said in his latest report that this new method has become more popular than ever.
The report, called Sending Money Back Home, reveals that of the 707 people interviewed, 15.8 percent use cryptocurrency to send money home. This makes it one of the most popular methods, ranking fourth after using an online service, a money transfer service or a traditional bank transfer. <img class = "size-medium wp-image-48039 alignright” title=”Report: The use of cryptocurrencies for remittance is increasing in popularity” src=”https://news.bitcoin.com/wp-content/uploads/2017/06/shutterstock_339441632-300×300.jpg” alt=”Report: The use of cryptocurrencies for remittances is growing in popularity "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2017/06/ shutterstock_339441632-300×300.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2017/06/shutterstock_339441632-150×150.jpg 150w, https://news.bitcoin.com/wp-content/uploads/ 2017/06 / shutterstock_339441632 -768×768.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2017/06/shutterstock_339441632-1024×1024.jpg 1024w, https://news.bitcoin.com/wp- content / uploads / 2017 /06/shutterstock_339441632-600×600.jpg 600w, https://news.bitcoin.com/wp-content/uploads/2017/06/shutterstock_339441632-696×696.jpg 696w, https: //news.bitcoin. com / wp-content /uploads/2017/06/shutterstock_339441632-1392×1392.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2017/06/shutterstock_339441632-1068×1068.jpg 1068w, https: // news.bitcoin.com /wp-content/uploads/2017/06/shutterstock_339441632-420×420.jpg 420w "sizes =" (maximum width: 3 00px) 100vw, 300px”/>
According to the report, the use of cryptocurrencies is partly due to the high costs associated with the use of traditional methods of sending money abroad such as Western Union or Moneygram. When money is sent to the countries of Africa by these methods, "super-taxes" often occur, especially when sending money to the continent. A remittance from South Africa to Malawi could see a 20 percent tax increase, for example. Cryptocurrency can minimize these costs. The report notes:
If some of the largest companies in the world, such as Microsoft and Starbucks, easily accept cryptocurrencies as a form of payment, this should instil confidence in the use of these new forms of payment for remittance remittances.
There is no doubt that the use of cryptocurrency to send money abroad can save money, as the report shows by examining the cost of sending $ 500 abroad. Banks on average would charge 10.41% for such a transaction, while a post office could give back to someone $ 34. Use of bitcoin core (BTC) or bitcoin cash (BCH) to get money at all. 39; foreign could actually see the sender make money. The report states: "By avoiding the high transaction fees and conversion rates typically associated with the transfer of funds abroad, it is possible to take a few more steps (including the conversion of the currency issued by the government into cryptocurrency and then back again). ), potentially achieving significant savings ".
Breaking the numbers
The report added that men were more likely to use cryptocurrencies for international transfers than women, and of respondents, the 85% were pleased to use it as a method of submission. The report also revealed that those who were not on board with cryptocurrencies were skeptical due to their lack of knowledge of how they worked.
<img class = "wp-image-265874 aligncenter” title=”Report: The use of cryptocurrencies for remittance is increasing in popularity” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/Remittance-Method-Clovr-738×1024-216×300.png” alt=”Report: The use of cryptocurrencies for remittances is growing in popularity "width =" 455 "height =" 632 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/ Remittance-Method-Clovr -738×1024-216×300.png 216w, https://news.bitcoin.com/wp-content/uploads/2018/12/Remittance-Method-Clovr-738×1024.png 738w, https: // news. bitcoin.com/wp -content / uploads / 2018/12 / Remittance-Method-Clovr-738×1024-696×966.png 696w, https://news.bitcoin.com/wp-content/uploads/2018/12/Remittance-Method -Clovr-738×1024- 303×420.png 303w "sizes =" (maximum width: 455 px) 100vw, 455px”/>
Of the 707 people interviewed by Clovr, most of the remittances were headed to Mexico, followed by China, India and the Philippines. The most important reason for sending money was that family members could buy food, according to the report, with 41% spending to make sure the recipient was not hungry.
When governments destroy the economy of a country – as seen in Venezuela – it makes sense for those who have fled their homes to find work abroad and then send money using bitcoins. As already seen, people from Venezuela use cryptocurrency to their advantage to send money to the South American nation short of money. As the number of remittances increases, more people are set to learn the benefits in terms of cost reduction and the ease of using cryptocurrency to send money home to their loved ones.
What is your opinion on the report and on the use of cryptography to send remittances? Share your thoughts on the topic in the comments section below.
Images kindly granted by Shutterstock and Clovr.
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