A new report disclosed by Clovr, a blockchain-oriented research company, shares that there was an increase in the number of people using cryptocurrencies to send remittances.
Remittances are the funds an expatriate sends to his or her country of origin — a resource that has been growing. The World Bank estimates that nearly $150 billion was sent from the United States to individuals in other countries in 2017 alone.
With increasingly more people moving abroad to study or work, easier and cheaper ways to send money “back home” become more and more necessary. And one of these ways is through cryptocurrencies, a method growing in popularity.
Clovr’s concluded that of the 707 people surveyed, 15.8 percent use crypto to send money home. Cryptocurrencies emerge, therefore, as one of the most popular methods — ranking in fourth place, after online services, money transfer services and traditional wire transfers.
The report also revealed that most remittances were sent (from the US) to Mexico and China, being the main reason behind the ability of family members to buy food, and that men are more likely to have used cryptocurrencies for remittances.
Between the individuals who have adopted crypto for remittance, more than 85 percent were pleased with the experience, according to the study.
Why it is important
- Cryptocurrencies offer, indeed, an affordable and quick way to transfer funds — allowing the avoidance of high transaction fees and conversion rates generally associated with transferring funds abroad through banks and other services.
- With people increasingly moving to other countries, remittance is a practice that will likely continue to grow in the future. With the advantages offered by crypto, it is safe to expect that they may become a primary method for remittances — which might support their adoption.
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