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Report: Use of Cryptocurrencies for Remittance Is Growing in Popularity

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A new report by a blockchain-focused research company asserts that there has been a spike in people using cryptocurrencies to send remittances. This growth is in part due to the high costs incurred when using more traditional methods such as Paypal. 

Also read: Seven Cryptocurrency Trends to Look out for in 2019

Easier, Cheaper, Faster

The value of remittances being sent overseas from the U.S. is greater than ever. World Bank Data states that over $148 billion was sent abroad from the U.S. in 2017. With an increasingly interconnected world seeing more people than ever moving abroad to work – and send money back home – migrants are looking for easier ways to cut costs and avoid getting ripped off by banks and other middlemen. One effective way of doing so is of course with cryptocurrency. Blockchain research company Clovr has said in its latest report that this new method has become more popular than ever.

The report, named Sending Money Back Home, reveals that of to the 707 people surveyed, 15.8 percent use cryptocurrency to send cash home. This makes it one of the more popular methods, ranking in fourth place after using an online service, money transfer service, or traditional wire transfer. Report: Use of Cryptocurrencies for Remittance Is Growing in Popularity

According to the report, the use of cryptocurrencies is in part due to the high costs associated with using traditional methods of sending money abroad such as Western Union or Moneygram. When money is sent to countries within Africa with these methods, “super-taxes” are often occurred – especially when sending money within the continent. A remittance going from South Africa to Malawi could see fees upwards of 20 percent, for example. Cryptocurrency can minimize such costs. The report notes:

If some of the largest companies in the world, like Microsoft and Starbucks, are comfortable accepting cryptocurrencies as a form of payment, this should instil confidence in using these new forms of payment for sending remittances

There is no doubt that using cryptocurrency to send money abroad can save money, as the report demonstrates by looking at the cost of sending $500 abroad. Banks on average would charge 10.41 percent for such a transaction while a post office could set someone back $34. Using bitcoin core (BTC) or bitcoin cash (BCH) to get money overseas could actually see the sender make money. The report states: “By avoiding the high transaction fees and conversion rates typically associated with transferring funds abroad, you can take a few extra steps (including converting the government-issued currency into cryptocurrency and then back again), potentially getting significant savings.”

Breaking Down The Figures

The report added that men were more likely to have used cryptocurrencies for international transfers than women, and of those interviewed, 85 percent were satisfied with using it as a sending method. The report also revealed that those who weren’t onboard with cryptocurrencies were skeptical because of their lack of knowledge of how they work.

Report: Use of Cryptocurrencies for Remittance Is Growing in Popularity

Of the 707 people surveyed by Clovr, most of the remittances were headed to Mexico, followed by China, India and the Philippines. The most important reason for sending cash was so family members could buy food, according to the report, with 41 percent of it being spent to ensure the recipient wouldn’t go hungry.

When governments wreck a country’s economy – as seen in Venezuela – it makes sense for those who have fled their homes to find work abroad and then send funds using bitcoin. As already seen, people from Venezuela are using cryptocurrency to their advantage in order to send money to the cash-strapped South American nation. With the number of remittances increasing, more people are set to learn of the cost-cutting advantages and ease of using cryptocurrency to send money home to loved ones.

What is your opinion on the report and on using crypto to send remittances? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock and Clovr.


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The post Report: Use of Cryptocurrencies for Remittance Is Growing in Popularity appeared first on Bitcoin News.

The Daily: Coinbase to Pay Users for Learning, Okex Launches Instant Messaging Service

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In today’s edition of The Daily we feature a number of recent developments by popular cryptocurrency exchanges. These include an educational platform by Coinbase, a communication tool for OTC traders from Okex, an important ticker update by Coinex, and an investment by ZB.com.

Also Read: Atari Partners Decentralized Gaming Company, Tagomi Goes Live

Learn and Earn

The Daily: Coinbase to Pay Users for Learning, Okex Launches Instant Messaging ServiceCoinbase has announced a new initiative meant to incentive people to learn more about cryptocurrencies. The Coinbase Earn educational platform will reward users with tokens for completing various tasks such as watching videos and taking quizzes on crypto-related content.

The service has launched in invite-only mode with just a single asset for now, but Coinbase promises that over time it will add more options. Users who received an invite by email can already go to the ZRX page to earn small amounts of cryptocurrency. Anyone else can view the educational content on the page for free, as well as sign up to a waiting list to be notified as more educational tasks are available.

“We think Coinbase Earn could help open up blockchain access to a new group of users: people who are curious about digital assets, but who’d like to try them out for free just like a normal web or mobile app. By serving that need, we hope to make blockchain more accessible in the process,” the team commented. The exchange also revealed that for the first set of tasks, funding is unsurprisingly coming from the 0x external development pool.

Okex Messenger

The Daily: Coinbase to Pay Users for Learning, Okex Launches Instant Messaging ServiceOkex, the Malta-based cryptocurrency exchange supporting fiat currencies such as Vietnamese Dong and Chinese Yuan, has announced it’s launched an instant messaging service. Developed for its over-the-counter trading (OTC) platform, the new feature allows users to establish direct communications between buyers and sellers.

The instant messaging service allows traders to send and receive messages in real-time with their counter-party on Okex’s website and mobile applications. The apps are available for both the iOS and Android operating systems, and the developers say that by enabling push notifications, traders will be alerted immediately through their mobile devices once they receive any updates.

Coinex Updates BSV Ticker

The Daily: Coinbase to Pay Users for Learning, Okex Launches Instant Messaging ServiceHong Kong-based cryptocurrency exchange Coinex has changed its Bitcoin SV ticker from “BCHSV” to “BSV”, announcing that from now on “BCHSV” will no longer represent the Bitcoin SV token on the platform. Founded in December 2017, the company counts mining giant Bitmain among its investors.

With this move, the exchange reaffirms that it expects users to understand that BSV is no longer related to Bitcoin Cash (BCH) in any way following the recent hard fork. Coinex was among the very first exchanges that opened withdrawals for both BCH and BSV following the fork, providing an easy way for holders to split the two cryptocurrencies.

ZB.com Partners Gaming Project

The Daily: Coinbase to Pay Users for Learning, Okex Launches Instant Messaging ServiceHong Kong-headquartered cryptocurrency exchange ZB.com has recently announced an expansion into the European Union with the launch of the Malta-regulated ZBX.com. To make a concerted effort to attract new Western users, the company has announced it is investing into select crypto projects, the first being Clovr.

Founded by a team of executives and developers with experience from King.com, Uber and Y Combinator, Clovr has developed an esports token to tap the market of 3.5 million real-money players engaged with licensed online casinos.

“We believe there is a large upside for projects with access to sizeable daily active user bases,” noted ZB.com co-founder Jimmy Zhao. “User adoption is crucial to the long-term value creation of cryptocurrencies. We think CLOVR could be the most used crypto of 2019 since their tokens can be purchased by an existing large and engaged esports and iGaming online user base.”

Ledger Adopts Crypto.com Pay

The Daily: Coinbase to Pay Users for Learning, Okex Launches Instant Messaging ServiceLedger, the Paris-headquartered hardware wallet manufacturer, has announced the signing of a deal to adopt a new cryptocurrency payment solution, Crypto.com Pay. Once the service is implemented onto Ledger’s online store, customers will have the option to purchase products at checkout by opening the Crypto.com wallet and card app, scanning a QR code, and selecting the desired cryptocurrency to be spent.

Éric Larchevêque, CEO of Ledger, said: “Our customers understand the everyday utility of cryptocurrency, and as a leading cryptocurrency asset hardware wallet provider, it is a natural step for us to provide a cryptocurrency payment option. We support what Crypto.com is doing to lead the industry forward with its vision of cryptocurrency in every wallet. We feel this payment option is just what our customers are seeking.”

What do you think about today’s news tidbits? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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