Cryptocurrency offers a quick and easy way for remitters to do international payments at a lower fee. That’s why cryptocurrencies are a new way to send remittances.
Traditional remittance companies typically take around three days. Remittances, the practice of sending money “back home” from rich countries, makes up approximately 4% of the country’s GDP.
For remittances to continue to be a lifeline, they need to be fast. When money is needed, it is often needed instantly. Sometimes, for example, someone cannot wait three to five days for funds to clear; they need food, fuel, and medical supplies today. That’s why Crypto Remittances are a live saver.
Crypto Remittances Benefits
Money sent from abroad to support families left behind is a common yet powerful global phenomenon. Money transfers from foreign workers and members of diaspora communities are integral in providing household income to their home countries or homelands.
In 2020, remittances from around the world provided an invaluable injection of $540 billion into low and middle-income countries according to World Bank figures. As globalization continues to create an increasingly interconnected global economy, these figures are poised for explosive growth in the foreseeable future.
Despite the world-wide spread of digital money transfer options, traditional remittance channels still remain at large. According to Remittance Prices Worldwide, a publication from World Bank, sending payments through banks or dedicated services like Western Union reaches an average fee cost rate across globally — 6.38 percent for retail transactions with values around $200 in Q1 2021.
That’s why we need dua pay!
dua pay is a remittance and payment wallet that will enable cross-border remittances at minimal cost for fragmented and diaspora communities.
With the launch of dua pay, the token will enable people to send money in form of stable cryptocurrencies, easily, very secure, and almost instantly for almost 0 fees. Thus, making international money transfers far more cost-effective and accessible than current traditional financial companies.
Beyond sending money, dua pay will allow customers to spend money at different online and offline merchants and earn interest on money – all together in one balance.
How can Crypto Remittance make a difference?
This new world provides an efficient and economical solution for sending money internationally, with transactions often completed within 24 hours. This is a dramatic improvement compared to traditional remittance companies.
Through the power of crypto, remitters have access to lightning fast transfers – think one business day compared to traditional methods. On top of that, the transfer fees are a fraction of traditional costs – averaging below 1%.
Crypto is empowering people with the freedom to handle their finances without relying on a traditional financial system. People are now utilizing crypto remittance as a fast, secure means of transferring money.
Pros and Cons of Sending Money Abroad with Crypto
Sending money abroad with crypto has major advantages. It costs less, takes less time to arrive at its destination, is more secure than conventional methods and can go anywhere in the world.
However, the notorious volatility of digital currencies makes it difficult. Although stablecoins are an option, they do not offer the same ease of use as Bitcoin and require internet connection.
The other drawback is that it’s become increasingly difficult to ensure that all industry players comply with existing laws. Unfortunately, this has been evidenced by Ripple – who faced litigation from the SEC after utilizing XRP for fundraising efforts.
In conclusion, Crypto remittances are increasingly becoming a popular alternative to reduce your money transfer costs when sending it abroad. It’s up to you and your family whether cash, through money transfer providers or this will be the best solution. However, one thing is certain: cryptocurrency will only continue growing more dominant in time.