In this modern world of advancement, people are trying to be progressive and advanced in any sense of life. As a result, our lifestyle has changed over the years, and we are trying to adapt to the digital world positively to enhance our ability to work smartly.
Innovation has captured a new pace since Blockchain managed to be in the field of technology. With the emergence of Blockchain, we came across the unthinkable digital currency- Bitcoin. In the world of digital madness, we are now experiencing the profitability of Bitcoin.
However, sending money overseas has always been a matter of concern for the public. Remittances include several charges and consequently increase the original amount that you want to transfer.
This article is going to deliver some positive advantages of using Bitcoin for remittance. You might consider the bitcoin loophole to experience the usage of Bitcoin and its potential benefits while transacting money.
Remittance is a cross-border transfer of money generally used for a non-commercial purpose. In this process, a client generally sends the money to a Money Transfer Operator (MTO) in their native country’s currency.
Then the MTO uses a large Remittance Software Provider (RSP) to transfer your money abroad. It is not that easy how you are thinking! There are chances of an inflation rate in the other country, and the majority of taxes will be applied to your money transfer process according to the current situation.
On the other hand, MTO will also take a minimal percentage of money to transfer it for you. Depending on the destination country, the RSP changes may vary from 5% to 9%. This becomes very difficult when someone is trying to transfer a small amount of money because there are so many regulations related to it.
They will also verify your KYC and Anti-Money Laundering regulations before transferring your money, and thus it can be time taking as well, besides the expense of money.
The total fee of a remittance transfer includes the charge of the sender and the exchange rate applied by the World Bank.
To mitigate such a high rate of transactions, we might consider Bitcoin as our prominent solution. Bitcoin has been in the market for a long time and is still leading the trading market positively. Well, we all know that it is a volatile market. Despite this fact, people trust the advanced abilities of Bitcoin so far.
There are various reasons to use Bitcoins besides trading, and one of them is transferring money. Let’s see how it can be beneficial for remittances.
Bitcoin offers an interesting solution to all kinds of remittances. Whether you want to transfer a huge amount of money or small, you just need to create a Bitcoin wallet through which you can exchange your hard cash for Bitcoin currency, which you will be able to do through various exchange platforms.
After that, you need to send those coins to your desired person in a foreign country. The receiver will get the coins, and they can exchange those coins into their country’s currency at any time from their wallet.
We never acknowledge that Bitcoin has no transaction fees. Yes! There is a very low transaction fee that you need to pay while you’re exchanging it with the native currency of your country.
But if you focus on the traditional transferring processes, you will see that Bitcoin is the only advanced process that saves you time and charges you only .05-1 percent of transaction fees.
The only potential hazard that lies within the Bitcoin transfers is their volatile market. We all know that the trading industry is volatile, but Cryptocurrency is much more volatile than any other trading industry.
Market fluctuation can be a big concern while transferring money abroad. It can harm you with extra costs when the market of Bitcoin goes down instantly.
Now it is your turn to decide which particular process you want to choose for remittances. Apart from the volatile market of Bitcoin, you will find it very effective when transferring money.
Bitcoin uses the efficient process of Blockchain, and thus your transaction will not get distracted by any third party, and thus you are safe from major transaction fees.