El Deadline Explains: International Money Transfers Through Cryptocurrencies
We explore the advantages as well as the risks.
By Jesús Chapa Malacara, Sandra López
Latinx communities have emerged as among the most enthusiastic users of cryptocurrencies and blockchain technologies in recent years. The high rate of adoption among Latinx communities and countries stems, in part, from an interest in alternative finance mechanisms that aim to include those historically excluded by traditional banks. They are also rooted in a search for faster, more secure and cheaper ways to send remittances to Latin America.
Cryptocurrencies claim to be one possible solution. Yet, they remain a highly volatile asset class with many unknowns. Though crypto advocates promote the idea that cryptocurrency remittances will finally shake the hold of traditional transfer companies and banks–and with fee-less or nearly fee-less transactions to boot– El Deadline’s findings on the subject explore various angles. Nonetheless, they are an alternative that cannot be ignored: they now represent as much as $400 million dollars a month in money transfers to Latin America.
