The remittance sector is always busy, but the huge profits frequently go to the wrong people. However, as cryptocurrencies such as Bitcoin continue to grow in popularity throughout the world, a chaotic shift is taking place that has the potential to significantly alter, if not entirely reset, this multibillion dollar economy.
Simply said, remittance payment is a means of sending money abroad.
A remittance is a transfer of funds to a recipient, usually relatives or friends in a less secure location or circumstance. It is standard practise for persons working abroad to send money back home to their relatives.
Is There an Example of Remittances?
Suppose you consider the millions of people throughout the world who have left their homes in search of better economic opportunities for themselves and their families. Therefore, the money they send home is known as a remittance, and it is crucial to receive these payments since even modest sums may make a huge difference.
Can You Trust Bitcoin for Financial Transactions?
Although this isn't the ideal question, it is more relevant to folks who are just getting started with cryptocurrencies or who are thinking about making an overseas transfer using bitcoin. Perhaps a better question would be, "Is bitcoin useful for making monetary transfers?" To which the answer is unequivocally yes. Bitcoin's ability to transfer wealth without chargeback risk and move value across borders and between any two countries in the globe is quite potent.
What You Should Know Before Sending Money Abroad
There are several options for sending money abroad, but cryptocurrencies like bitcoin may be the most secure and convenient. If you are the recipient of a transfer, you may easily acquire crypto to use for remittance payments or sell it via a peer-to-peer marketplace or local bitcoin exchange.
Why Old-Fashioned Methods of Sending Money Home Have Drawbacks
Since Western Union and similar businesses have dominated the remittance industry in many areas for decades, the lack of competition has led to steadily rising prices. Not only do services like Western Union charge for sending money, but there is also usually a fee attached to the spread made on the currency exchange portion of the transfer. Therefore, if you're trying to find the cheapest way to transmit money internationally, traditional methods are becoming increasingly inefficient.
Companies that facilitate international money transfers generally rely on local agents, couriers, and employees to reach areas of the world that lack reliable banking infrastructure. The latest epidemic is only one example of how this economic model struggles to adapt in the digital era. However, digital payment systems and cryptocurrencies may continue verifying transactions without breaking a figurative sweat despite travel limitations and even banks' struggles with cross-border payments to some degree.
In a nutshell, the most important problems with conventional remittances are related to cost and turnaround time.
Sending Money Overseas via PayPal.
One of the most widely used online payment systems, PayPal is not the best choice for sending money abroad. When you need to withdraw money from your PayPal account is a major milestone. Access to a bank account or the identification needed to verify with other payment providers might be challenging for persons living in regions of the world where remittance payments are particularly crucial. It's easy to run out of money if you don't have a way to buy food, such if no nearby grocery stores take PayPal.
How To Make Free International Money Transfers
Even if it will be difficult to discover a direct method of doing so, it is possible to learn how to send money internationally with no costs, or at least with minimal ones, by exercising greater discretion over the timing and manner of your transfers.
You may transfer money to anyone, regardless of their location, when using a cryptocurrency like Bitcoin, Ethereum, or even a stablecoin like Dai or Tether. The booming P2P trading business throughout the world means you can get your money out with little hassle. If you utilise a P2P marketplace that allows cash trading (like LocalCoinSwap), you can even trade in-person with local cryptocurrency traders for your local currency in exchange for cryptocurrency, so it doesn't matter if you don't have a bank account.
Bitcoin International Money Transfer
Step 1: Find a source for bitcoin, ideally a P2P marketplace like LocalCoinSwap, where you may utilise any accessible payment methods.
Step 2: Get an appropriate wallet address from the receiver and transmit the bitcoin. If you are sending a more noteworthy quantity for the first time, try sending a minor fraction first to test if you have the proper data.
Step 3: Wait for the transaction to confirm a few times on the blockchain so you can consider the transaction finished. At this point, the receiver may begin trading or spending the bitcoin themself, and you have successfully sent money internationally using bitcoin.
How Many Bitcoins Are Used for Remittance Each Year?
The amount of money sent back home to Africa, Asia, and Latin America through bitcoin and other cryptocurrencies is in the billions. Bitcoin's popularity is only expected to grow in the future years as more and more nations, including El Salvador, recognise it as legal cash. It's impossible to dispute that the trend towards decentralising remittances from centralised systems like PayPal, MoneyGram, and even traditional banks' wire transfers is anything but a nett good.
Do Bitcoins Influence Money Transfers?
No matter your stance on bitcoin or other cryptocurrencies, you cannot deny the revolutionary impact they are having on the global money transfer market by making it possible to send funds instantly, without the need for a middleman, and with no restrictions on the amount or destination of your transfer.
Bitcoin is removing barriers, giving individuals the freedom to transact value on their own terms, and making the whole wide globe feel a lot more connected in all the greatest ways.
Want to give it a go?
If you're looking to give a Bitcoin transfer a go, Bitcoin Babe offers a number of quick and easy methods to buy Bitcoin - check them out below!
This awesome article was inspired by gingerbreadfork on the LocalCoinSwap Academy