The idea is to provide frictionless and nearly instant payment solutions. The main goal of blockchain remittance companies is to simplify the entire process, removing unnecessary intermediaries. This article introduces some of the possibilities and existing solutions, along with a few examples of companies working in the space. ![]() In this context, blockchain technology may provide viable and more efficient alternatives to the remittance industry. Not only because the services are expensive but also because transfers may take days or even weeks. The need for multiple intermediaries makes the current system highly inefficient. In addition to the high fees, most remittance solutions rely on third-party services and financial institutions. Considering that worldwide remittances made up to $689 billion in 2018, 7% would count for roughly $48 billion paid in operational costs. The World Bank estimates that the current cost for sending a $200 remittance is around 7% (global average). For example, Haiti received international remittances that accounted for roughly 29% of its GDP in 2017. As such, migrant workers’ transfers are now one of the main sources of income for many countries. Some developing economies are heavily dependent on cash that comes from abroad, making remittances a substantial component of their economy. ![]() According to the World Bank Group, the remittance industry experienced significant growth in the past years, up 8.8% in 2017 and 9.6% in 2018. Today, remittances represent the largest flow of funds into the developing world, surpassing foreign direct investments and official development assistance. In most cases, it consists of an immigrant worker sending money to their home country. In short, remittance can be defined as the transfer of money to a distant location, usually between individuals that live in different countries.
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