Use of cryptocurrency in remittances from U.S. on the rise: Report
Well, if your loved ones are living far and you want to make sure that their financial needs are taken care of, you need to think over carefully and make sure that the money reaches the intended recipient. Many people send money far and wide through remittances made available by a number of companies, who make sure that the amount reaches the desired recipient. The use of cryptocurrency in this field is relatively new, but it has already started to make its presence felt.
Remittances mean big business now and in 2017 alone, nearly $150 billion was sent out of the United States to individuals in other countries in 2017. And the startling fact is that an estimated $30 billion was sent from the United States to Mexico via remittances that year alone, almost double the amount sent to China. A new report by research focused cryptocurrency company, Clovr, reveals that there has been a major spike in the use of cryptocurrency in remittances across the globe.
The report adds, “Over half of the people surveyed have used online services, such as PayPal, and traditional money transfer companies, like Western Union, to help deliver their funds to recipients in a different country.”
The study revealed that nearly half of all surveyed people indicated that they use PayPal and money transfer services like Western Union, compared to 15.8 percent who use cryptocurrency, and 25.7 percent who use traditional bank wire transfers or credit union.
And the time is just right for the introduction of blockchain and cryptocurrencies in this sector, as cryptocurrencies provide a secure and easier way of transfer of funds.
As per the report, nearly 85 percent of men and women who have used cryptocurrencies were satisfied with cryptocurrencies as a sending method. The report also shows that men are most likely to adopt cryptocurrencies as compared to women who are less inclined to do so.
The report further notes that while Bitcoin and cryptos have become household names, it doesn’t mean everyone who hears about cryptocurrency fully understands the ins and outs of how it works.
“Roughly 1 in 3 men and more than half of women were either not at all or only slightly familiar with it. They were even less comfortable with the notion of the blockchain, a pivotal part of understanding the technology behind digital currency,” reads the report.
Things are changing and cryptocurrencies provide a better alternative to the established platforms that may not react quickly enough to the changing payment landscape. And if things go well, blockchain payments and cryptocurrencies might be the primary vessel of remittances into the future.
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