Crypto Remittances Soar
Crypto remittances continue to soar, according to a new study. One of crypto’s most obvious use cases is proving increasingly popular, as diaspora and those with friends in other countries are using digital assets to send money abroad.
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A Most Obvious Use Case
A recent study conducted by Clovr has found that the use of cryptocurrencies in cross border transfers is increasing. The survey found that, of the 707 people questioned who had remitted money within the past year, 15.8 percent of them used cryptocurrencies to do so.
While still well behind traditional remittance services like wire services and online and money transfer services, over 15 percent is a significant slice of the market share for such nascent technology, especially given that in the first number of years after the creation of bitcoin, crypto was an extremely marginal industry. The bitcoin whitepaper is now ten years old.
The top two reasons given by those not using crypto for remittances were that they were unfamiliar with it and they were concerned it would be difficult for the recipients to spend, given low levels of adoption.
According to figures from the World Bank, over $148 billion USD was sent overseas from the U.S. in 2017. Mexico, China, India, and the Philippines top the list of recipient countries:
Crypto Remittances Have Enormous Growth Potential
According to the same survey, over 85 percent of crypto remittance users are satisfied with their chosen method of remittance, preferring it to other options. Most remittances–over 75 percent–are for family reasons. The use of cryptocurrencies would appear to be an intuitive means of cross-border remittances: it is fast and cheaper than any other method.
While difficult to measure, the remittance industry is worth over half a trillion dollars annually, a report by the Pew Research Center found. China, Mexico, India, and the Philippines dominate recipient figures worldwide.
The World Bank has been scathing toward remittance services, finding that from 2015 to 2016, the cost of remittances held firm at 7.45%, despite falling costs due to advances in technology.
Crypto remittances would appear to be a clear answer to those cost concerns, especially given that over 40 percent of remitted funds are intended for food, according to Clovr’s report, meaning high fees raise a number of moral issues.
Clovr is an online gambling and gaming token currently holding an ICO.
Have your say. Are crypto remittances set to continue to rise given their significant fee advantages?
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