Each year Bitcoin seems to make new leaps into being accepted as a viable payment option or a store of value outside of the cryptocurrency industry. While the financial sector initially turned its nose up to the digital asset, there has been a change in tune over recent years. As there should be. The use cases of this nascent technology are endless and wasted if not embraced by all. Today we’re looking at 5 reasons why Bitcoin is the answer to the remittance market.
Remittance Market Overview
Before we dive into the 5 reasons, let’s touch base on the remittance market as a whole. The market looks at money sent to other countries by individuals, usually pertaining to immigrant workers sending money home. The World Bank reported that the countries that received the highest remittance in 2019 were India, China, Mexico, the Philippines, and Egypt.
In 2018 the World Bank announced that the market had grown to US$689 billion, before decreasing to $554 billion in 2019. Due to the Covid 19 pandemic and all the employment and financial implications that came with it, the remittance market fell another 7.2% to $508 billion. The market is likely to further decline before bouncing back, and what better way to bounce back than with the powers of Bitcoin.
5 Reasons Why Bitcoin Is The Answer To The Remittance Market
The competition between companies offering remittance services to low and middle income countries is rife. With many services to choose from, all based off of the same outdated banking systems, blockchain technology may just be the answer. Available to both those companies trying to get ahead as well as individuals, Bitcoin could revolutionise remittance as we know it. Let’s explore 5 reasons why Bitcoin is their answer.
#5 Bitcoin Is Decentralized
As the peer to peer cryptocurrency is not controlled or operated by any financial institution or bank, the paperwork necessary to send money is infinitely reduced. Furthermore, as the entire payment system was designed to cut out the middleman, the process of sending money via Bitcoin versus through a remittance company using various banks is notably easier. The only requirement from both parties is that they each have a Bitcoin wallet, and access to the internet. The set up only takes a few minutes, and access to both of these can be found in most corners of the globe.
#4 Much Faster Than Fiat
Due to the nature of how Bitcoin transactions work, the platform does not require any third party to register or review the information. Instead, internally the transaction is verified based on whether the sender has enough funds. When sending money between banks and companies, it is necessary for the companies to review the information before confirming and accepting it. This obviously takes time, so while fiat transfers may take up to 5 days to reach their intended destination, cryptocurrency (particularly Bitcoin) can take anywhere from 10 – 40 minutes. Unlike banks, the Bitcoin network operates 24/7, 7 days a week.
#3 Less Fees Incurred
Another reason why Bitcoin is the answer to the remittance market is because not only is it faster to send money, it’s cheaper too. Due to all the middlemen the money needs to cross through (from the sender’s bank to remittance company to the remittance company’s bank in the recipient’s country to the recipient’s bank) there are fees incurred at every step of the way. This cost cuts into the amount of money being sent home. With cryptocurrency, the Bitcoin network charges one small transaction fee and that’s it. The sender will also incur a small cost to sell the Bitcoin for their local currency, however these two fees combined will be significantly less than the remittance company’s service fee.
#2 Heightened Security
One of the reasons why Bitcoin is so widely celebrated is due to its unhackable blockchain technology. As the network of nodes that maintain the system are in constant communication, there is little to no chance that a hacker could gain access to the system and redirect the payments. Nothing could be more secure than encrypted digital payments.
#1 Accessible To All
Aside from the faster, cheaper and more secure reasons on why Bitcoin is the viable choice here, it is also universally accessible. Catering to the banked and the unbanked of the world, Bitcoin does not discriminate against anyone’s background, financial history, or access to financial institutions. Bitcoin offers a decentralized payment system that can be utilized by anyone, anywhere, anytime.
The World Awaits
That concludes our 5 reasons why Bitcoin is the answer to the remittance market. For anyone looking to send money overseas in a faster, cheaper, more secure manner – whether a remittance payment or not – Bitcoin provides an excellent service. Tap into the highly accessible world of Bitcoin with Oobit and purchase BTC with your credit or debit card today. It’s time to get into crypto, build your crypto portfolio conveniently, securely, with certified and trustworthy account.