Cryptocurrency has the potential to revolutionize the way international money transfers are conducted, saving people billions of dollars in fees. According to Coinbase, the fees associated with traditional remittance transfers amount to an average of 6.18% of the amount being sent. That amounts to spending around $12 billion in remittance fees each year. Major cryptocurrencies, such as Bitcoin and Ethereum, historically charge much lower transaction fees, with averages of around $1.50 and $0.75 respectively. This is 96.7% cheaper than traditional methods of remittance, allowing people to save huge amounts of money.

The majority of remittances are sent from the US to Mexico, with the USA accounting for nearly 95% of all transactions in 2022. It stands to reason that Cryptocurrency could have a massive impact in this area. American citizens investing in cryptocurrencies, or simply using them to make transfers, can put more money in their pocket and, perhaps more importantly, help to level the playing field for people in developing countries.

Cryptocurrency adoption in America has been increasing steadily since 2019, excluding two quarters at the end of 2022, and currently stands at 6% of the adult population, who hold some form of cryptocurrency. Although this is still relatively low, it is likely to grow as more investors become aware of the enormous potential they offer in terms of cheaper money transfer.

A migration from traditional to crypto-based remittances could potentially upset the global financial industry and drive away expensive fees as cryptocurrency adoption increases. With lower fees, faster transfer times and better security, it’s clear that cryptocurrencies have the potential to revolutionize the way remittance transfers are conducted.



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