If you are an individual indulging in frequent money transfer across countries or if you run a business, you would certainly be aware of the global remittance market and the difficulties that users face in it. For a few of those who might have not known remittance yet, it is a cross-border money transfer process, which is generally used by employees working overseas to send money to their native country.
Remittance is usually a complex process and people sense a fear to undergo it in their initial days of using the traditional remittance industry. To overcome this estranged feel, blockchain has made remittance clear-cut and demands no knowledge from the sender or receiver. Remittance through blockchain is completely safe and secured because everything happens through a well protected and anti-threat method. Legitimacy and transparency are also added advantages that the blockchain powered remittance services can offer its users.
Many developing nations largely rely on cash inflow through remittance services. Remittance can create a potential impact on the financial infrastructure of a nation, because a majority of people who involve in remittance process might not have a bank account, ending up using a third party money transfer operator. This process of sending money through an operator takes up huge commission amount and generally long processing hours. Studies state that employees working overseas use money transfer platforms such as Western Union, Revolut & TransferWise and they charge an exorbitant portion of the transferred funds as remittance fee. This is a significant problem and needs a permanent solution to it.
With days moving to digital banking era, the need to arrive at a solution to this biggest remittance challenge that people across the globe faces seems mandatory. Here comes the role of cryptocurrencies and blockchain technology. Blockchain technology, the latest in trend, has the fullest potential to revolutionize the global remittance industry and arrive at favoring solutions for the common man, especially those who fall under the unbanked category.
Using blockchain for remittance will be the solution to eliminate the present exploitation happening in the remittance market and give a promising solution to its future. Cryptocurrency and the blockchain technology is what the global financial market had been missing all this while, but not anymore. As we are gradually moving into the crypto world, we can lucratively attain the freedom of accessing a low cost and instant remittance service. The need for urging on such a revolution to the traditional remittance market is because of the fact that people might indulge in money transfer for various reasons which might require immediate money. Say, for example, medical reasons that demand immediate money cannot withstand the huge waiting time that the traditional remittance market usually takes up. Remittance through blockchain eliminates the long waiting process and almost nullifies it, making instant money transfer possible. The need for speed in remittance service is not only because of the receivers’ emergency but, through this blockchain also provides users the complete control of their funds. As like individuals, even businesses welcome this instant remittance service through blockchain technology, because businesses always need instant cash flow for meeting their basic business requirements.
Africa is one of the countries which are largely impacted because of the huge remittance fee. Those migrants sometimes end up paying the highest exchange rates compared to anywhere in the world. Blockchain powered remittance can be the only solution to the existing remittance concerns. Few benchmark firms have adapted this blockchain technology at a very early stage with the intention to provide a stress-free remittance experience to the users. Those companies can certainly create a bigger impact on the global remittance market and change its future completely through the power of blockchain technology. They are going to be the game changers of the remittance market. I would like to give a special mention to Cashaa here. Cashaa is an FCA regulated entity based out of UK and soon would spread its wings across the globe. It is the only platform that will facilitate crypto to fiat and fiat to crypto exchange, which is a competitive advantage for Cashaa over others. This one factor of Cashaa is enough to get a global reputation and acceptance. Cashaa, the Fintech company works with the goal of ‘banking the unbanked’ will certainly provide the most-wanted solution by the global remittance users and the good news is that the company is going live soon.
