As BTL has recently unveiled Interbit, an international remittance platform which lowers the costs associated with fiat to fiat currency, it’s clear that there is much room for growth in the space of remittances using blockchain technology. Fintech as a whole is rapidly embracing potential applications of the blockchain across the board and many players in the space seem eager to test out what efficiencies can be squeezed out of this emerging technology in the fastest and most disruptive way possible.
Existing Remittance Options Take Too Long
Currently, anyone who banks with major institutions knows what’s involved, at least on the user end, with remitting money overseas. First off, it takes a lot of time. When you transfer funds between SWIFT affiliated banks, some institutions take can take up to five days or more. In the case of needing a rapid solution to take the place of this, blockchain technology is a powerful one. Cryptocurrencies which are already established on blockchain technology can transfer funds with a degree of security within minutes.
Remitting Funds Cross-Border Is Expensive
The second issue with cross-border remittance is that the cost can be prohibitive. Blockchain remittances are cheaper and more secure for both financial entities and end users due to the simple yet powerful networking technology which cuts out reams of red tape and fees. For people within developed nations who send money to their families overseas, the fees with traditional banks can pile up to hundreds of dollars, often being charged both to send and receive funds. For those in developing nations, the need for low-cost remittances is even greater. In countries such as the Nigeria and the Philippines, remittances form a huge fraction of their GDP, around 4% and 10% respectively. Every dollar spent on the fees associated with sending the money is likely better used elsewhere.
Opening Up Options To Those Who Need Them
Lastly, the access to traditional banking solutions within developing nations can be a major issue for people to overcome in their attempts to transfer money. Even if banks systems are available, not everyone has access to them. Having a more widely spread solution based on blockchain technology takes the nearly exclusive power that mega-banks have over cross-border remittances and gives more opportunities to people who need them.
Blockchain technology gives us the ability to change and radically improve on efficiencies in many tried and true industries that we just take for granted as being big, slow, cumbersome, but ultimately reliable. When we add in cutting edge industry expertise with blockchain technology, amazing new breakthroughs are possible that will help people all over the world with not only revolutionary new features and abilities, but more reliability and transparency in the process.
This is an opinion article by James Moreau. Views expressed in opinion articles do not necessarily reflect the views of BTL.