Remittance in Nepal. How Nano could help save in millions.
Nepal is among the top 10 countries to receive remittance. Nepal received a total of $7.8 billion in remittance in the fiscal year 2018/19, contributing 25.4% to the national GDP of $29.8 billion. Remittances from Nepali workers abroad have continued to defy expectations. For the past 10 years, Nepal has seen an average of 15% growth in remittance every year.
Like many other developing nations; Nepal’s economy is greatly reliant on remittances. As per Nepal Rastra Bank’s report ‘The Status of Remittance Inflow in Nepal’, Nepal received a total of NPR 879.3 billion (USD 7.8 billion) in remittance in the fiscal year (FY) 2018/19, which is a contribution of 25.4% to the national GDP of NPR 3.4 trillion (USD 29.8 billion). Besides this, remittance is also the main source of foreign exchange reserves to the country as remittance inflow surpasses the official development assistance received and the total foreign direct investment in Nepal. In FY 2018/19, the official development assistance received was NPR 201.8 billion (USD 1,793 million) and the total inflow from foreign direct Investment was NPR 13 billion (USD 115.5 million).
Every year hundreds of billions of dollars are transferred internationally by businesses and individuals who have emigrated from their home countries and cross-border money transfers are likely to experience double-digit annual growth rates over the next few years. Remittances reached a record high in 2018, according to the World Bank.
These statistics indicate the immense size of the international payments industry and the impact it has on individuals, businesses and the broader economy of the countries to which payments are made. The World Bank predicts that remittances are on track to become the largest source of external financing in developing countries and, as such, have a profound influence on the potential growth of these countries. United Nations has set a 2030 Sustainable Development Goals’ target to reduce the transaction costs of migrant remittances to less than 3% from their current estimated average 7.1%.
However, with the advent of mobile wallets powered by blockchain technology, the way international payments are made is set to change completely. One such technology is Nano. Nano is intended to be digital money for the modern world. It was freely given away to anyone willing to solve captchas. Because of this, Nano was distributed broadly and fairly, mostly to people in poorer countries. Because of its fee-less nature, it’s well suited for lower-income countries. Because of being instant, it works as a medium of exchange, as money. Because there are no fees and there is no inflation, no money is lost when either storing value in Nano, or when using Nano.
The vision of Nano is broad. It allows for fee less remittances. Foreign workers pay an average of 6.8% in fees to transfer money home. Nano can do this far more efficiently, both at lower cost and faster. It allows merchants to start accepting payments anywhere in the world, instantly, without fees. It enables streamers to receive fee-less tips, enables anyone creating art or self-publishing to instantly take small (or large) payments for their works. It enables anyone suffering from hyperinflation to securely store their money in a currency whose supply can’t be increased. It allows charities to take donations from all over the world. This means less money going to middlemen, and more money arriving directly where it’s needed. Nano makes money efficient, friction-less, secure and border-less.
The average transaction fee to Remit money to Nepal is 0.2%.
That is around 2 Million US$ spent on paying remit fees.
Be Smart, Use $Nano.