Technology has always played a pivotal role in every industry, and finance is one of the industries that immensely uses technology to make high-level security and efficiency. Bitcoin is the solution to decrease remittance fees in most developing countries. You can visit bitqt to get features like excellent customer support, live trading, and lesser trading fees while bitcoin trading. Bitcoin is counted as a revolutionizing global money transfer across the world. Cryptocurrency has brought millions of new opportunities in the context of remittance settlement that offers a cheap payment solution for financial institutions and even the general public.
How does bitcoin do this?
When transferring funds from one nation to another, the bitcoin community works as a middleman or intermediator for the receiving and sending parties. The sending and receiving part is usually executed with the help of a bitcoin wallet.
The Bitcoin wallet’s two essential components are private and public keys, which are almost similar. But it is the private key you should protect from malicious and cyber-attacks at any cost.
Bitcoin sending and receiving part is performed on the wallet, but it is optional to use a dedicated bitcoin wallet; there are different types of wallets you can use. However, a hardware wallet is the best choice when securing or sending a massive amount of bitcoin.
The disintermediation in bitcoin nature protects it from the concept of chargebacks. The concept of the chargeback is prevalent on payment applications like PayPal, as the buyer can file a chargeback upon the seller if they have not received good services. Chargebacks have now become a significant liability for the remittance service provider as the scope of negotiation does not even exist on the sender’s part. Chargebacks are not only expensive for the receiver.
What is a remittance?
Remittance is sending money from a particular nation to another nation. Remittance is performed by the workers who live abroad and support their families back in their home nation. Traditional remittance providers usually live very high fees for multiple services, such as internationally transacting funds using conventional methods. Regardless of the expense, some remittance providers even threaten chargebacks due to security risks and fraud.
What is bitcoin remittance?
Bitcoin remittance is almost similar to traditional remittance. Still, they utilize technical aspects instead of focusing on the traditional trust-based system like bank transfers and international cash payments as financial intermediaries. And more importantly, as the organizations have been deeply rooted with international remittances for years and have recognized and come to terms with them, it incurs a complete lack of limpidity and standardization in the industry. Moreover, there needs to be accurate data on how much funds go overseas and how that compares to domestic transfer requirements. This loss in transparency has made it extremely challenging for people working to reduce the remittance fees somehow.
How can bitcoin reduce remittance fees?
Remittance is a massive part of the world’s economy, and more individuals are receiving more money than ever. More than 20 remittance providers are ruling the world of finance at the instance, but they all come with some limitations. In short, the cost of sending money to another country has not decreased but has kept increasing in the last few decades. The primary reason behind this is increasing inflation, devaluation of currencies, high taxation scheme, strict cross-border regulations and high costs charged by remittance service provider.
However, bitcoin is the potential solution to this problem. Remittance fees affect not only the people living abroad but also the businesses trying to increase their international reach, as the profit margins keep decreasing due to increasing remittance fees. Therefore, using bitcoin to execute international transactions can help many individuals overcome the increasing remittance fees. The reason why bitcoin is a potential solution to this problem is its disintermediation attribute. Therefore, Bitcoin is making its way onto the top of remittance methods that can save thousands of dollars for individuals who try to send money abroad.
Bitcoin is not just paving the way in the remittance industry but also spreading its root in finance as it has helped numerous finance companies manage their outrageous balance sheets. The technology that backs bitcoin can offer numerous benefits to financial institutions with massive visibility. It correspondingly improves liquidity, decreases cost while making transactions and even embraces the security of funds.
