By Remitbee - May 9, 2022
By Daniel Korolija
Migration has always been a cornerstone of human life. People have moved to different parts of the world in search of new opportunities, escaping from persecution, or simply looking for a better life. In recent years, remittances – money sent by migrants to their families in their home countries – have become an essential source of income for many developing countries.
Today, international remittances total more than three times the amount of official development assistance. However, there is now a new way for people to send money home: Cryptocurrency. So which is better – traditional remittances or cryptocurrencies? Let’s take a closer look.
Remittance is the act of one person gifting money to another, typically via wire transfer or online service such as RemitBee. However, the practice is much older than its latest form of execution; this current surge in relevance has occurred due to the growth of international migration.
According to the World Bank, total global remittances were estimated at $540 billion in 2020. The majority of these are sent from developed countries to relatives in developing countries. For many families, remittances are a vital source of income and a defence against extreme poverty.
Remittances are used to fund everything from home repairs to medical bills. They also fuel local economies, as they represent money that can be spent on goods and services within a community. In some cases, remittances can even finance businesses or education.
Traditional remittance methods like wire transfers and money orders have several key disadvantages compared to cryptocurrencies. For one thing, they are can be slow and include fees that add up over time. Learn how RemitBee is solving this
By contrast, cryptocurrencies allow money to be transferred almost instantly at minimal cost, making them a much more efficient option for anyone sending or receiving payments.
Furthermore, cryptocurrency transfers offer an added layer of security and privacy compared to old-school remittance methods. Cryptocurrencies represent a significant shift in the way people send money around the world. If you're looking for fast, affordable, and secure transactions across borders, investing in crypto may be the right choice for you.
Despite the many benefits that cryptocurrencies offer, many people are still wary about using them for remittance. Critics point out that cryptocurrencies are extremely volatile, meaning that large money transfers can quickly lose value.
It can also be challenging to convert cryptocurrency into local currency in some parts of the world. While these issues certainly need to be addressed, they don’t detract significantly from the overall potential of cryptocurrencies as an efficient and convenient remittance option.
Low fees and reasonable exchange rates are the primary reasons cryptocurrency-based remittances have become a popular way to send money overseas. However, there are a few things to keep in mind: First of all, cryptocurrency values change rapidly, so it's important to check the latest prices before sending any money.
Secondly, most cryptocurrency-based remittance services require you to convert your fiat currency into cryptocurrency first, meaning that you'll need to have some understanding of the cryptocurrency market. So, if you're thinking of using a cryptocurrency-based remittance service, be sure to do thorough research!
There are many different cryptocurrencies on the market today, each with its own unique set of features and benefits. Some, such as Bitcoin and Ether, are a solid value proposition as an efficient means of sending money internationally. Both currencies allow users to make fast, cheap transfers that can be processed 24/7.
Additionally, cryptocurrencies offer high levels of anonymity. However, not all cryptocurrencies are equally secure: Some provide distinct advantages for international
transfers. For example, Ripple stands out due to its impressive transaction speeds and low fees, while Dash enables anonymous transactions that can help protect user privacy. Ultimately, the choice depends on your individual needs.
The future of remittance and its relation to cryptocurrency is uncertain. Both industries are rapidly changing and evolving, and it’s difficult to predict their exact trajectory or the form they will take in the coming years.
At present, remittance services are outpacing cryptocurrencies in terms of mainstream adoption. Still, as more people begin to recognize the benefits of digital currencies, this balance may shift in favour of the newer contender. It is anyone's guess where exactly these technologies will head in the long run.
Still, one thing is for sure - whatever happens, it will undoubtedly have a major impact on how people around the world transfer money and access financial services. After all, a changing world requires adapting technologies to keep up with our ever-evolving needs. And while we can't know everything that lies ahead for remittances and cryptocurrency, we can be certain that this dynamic duo has an exciting future.
If you're looking for a simple way to send fiat abroad try RemitBee
By Daniel Korolija