Indias Federal Bank Launches Blockchain Remittance Platform for Overseas Workers

The information cannot be distorted, deleted, modified or destroyed, and computer device has the same information as everybody,” says Mr. Darko. Many users are only spending and speculating with the coin provided free by the government, but some are topping it up with their own savings. Now let’s look at one of the largest markets for outbound remittances, the Middle East & North Africa region. “It all depends on the time the crypto market takes to recover from the current recession, inflationary and other factors. El Salvador’s economy has to survive this hardship in market conditions to reap benefits of a possible crypto market rebound.” If the crypto markets remain as volatile as they are now or fall further, it goes without saying that the El Salvador case will be cited as a bad example. Even in the past, many experts have called such a move highly speculative and risky.

  • Another reason Latin Americans feel crypto is safer than their fiat currencies is that it is decentralized and does not depend upon government-controlled institutions, banks or other third parties.
  • BAT aims to address inefficiencies in the digital advertising industry by rewarding users for viewing ads and assuring marketers that their messages are being seen by their target audience.
  • However, the actual size of remittances is in fact considerably larger than official statistics due to the high use of traditional informal channels that provide less transparency, less security, and fewer benefits compared to regulated models.

This coincided with the Bitcoin price crossing the $60,000 mark around November 2021. Choose your preferred payment method to deposit money into your account. Despite the launch of many B2B payments solutions, pain points continue to exist in the space – which means there is scope for improvement.

Bank transfer

Other factors that need your attention include the cryptocurrencies on offer, processing time, and payment methods. And cryptocurrency users tend to prefer innovative payment methods like mobile wallets, the study found, with 46% of them more likely to send funds directly into a mobile wallet, which offers the convenience and speed they desire. It began as a free service, but it now charges a fee for every transaction that’s “25% to 50% lower than traditional cross-border payment solutions,” according to the exchange. Coinbase also allows users in Mexico to convert and invest their balance into over 100 cryptocurrencies, including Circle’s USDC stablecoin if they choose not to cash out. The use of cryptocurrency to send remittances is gaining ground in Latin America, and although skepticism persists, there has been a rapid proliferation of solutions that seek to speed up the colossal movements of money across borders. Alberto Alarcón, a former publicist from the city of Maracay, started investing in Bitcoin to support himself back in college seven years ago.

Wave of Crypto Remittance

Roxana Ruana, who was waiting in line at a Chivo ATM with her daughter to withdraw the $30, said her brother lives in the U.S. and sends them about $150 a month. She said if the Chivo app can help save them the $15 in fees they pay to receive remittances via Western Union, it will help them grow the family business of selling women’s clothes in San Salvador. The Yellow Card platform is built on our mission “Financial inclusion for all”. We want everyone to have access to cryptocurrency and the financial freedom it provides. Ayala spent 18 years in Wells Fargo’s consumer banking division, where he led the Global Remittances Services business. This year, he jumped ship into the fintech space, joiningWelcome Techas the managing director of financial services.

Bitcoin as a Hedge: Hype or Fiction?

Though it offers significant benefits as a platform for the decentralized applications that will form the basis for Web3, Ethereum does not offer the same simple solution that Bitcoin does for payments and saving. For countries looking to adopt a cryptocurrency as legal tender, Bitcoin offers a more ready and reliable solution than anything else that currently exists. Users can receive money through banks, cash pick up, home delivery, etc. Remittance service providers charge users a certain percentage of the amount they desire to transfer. Traditionally, banks have charged a significantly large percentage of the transaction.

The primacy of the U.S. dollar has provided the United States unrivaled power to impose crippling economic sanctions. However, sanctioned states including Iran and North Korea are increasingly using cryptocurrency to evade U.S. penalties. Meanwhile, terrorist groups such as the self-proclaimed Islamic State, al-Qaeda, and the military wing of the Palestinian organization Hamas also traffic in crypto. In countries with historically weak currencies, including several Latin American and African countries, Bitcoin has become popular with citizens. In 2021, El Salvador made waves by becoming the first country to make Bitcoin legal tender , though the move has sparked protests.

XLM is the native cryptocurrency of the Stellar protocol, a decentralised network designed to facilitate extremely fast, low-cost cross-border remittance. 80% of the total supply of Wirex Tokens are built on the Stellar network for maximum transaction speed and efficiency. I like the fact that Congress wants GAO to identify “real options” and not only continue to analyze the problem. I also hope GAO also looks at what Europe is doing and what has happened in Spain and Australia.

Flutterwave will work alongside Stellar’s principal European Union payments partner, Paris-based money transfer operator, Tempo Payments. NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies. Also, poor power supply in many countries continues to impede the internet access on which cryptocurrency largely depends. The difference between cryptocurrency and, say, Visa or Mastercard, is that a cryptocurrency is not now regulated by government and doesn’t need middlemen, and transactions rely on the internet, which means they can happen anywhere in the world.

by amol