Using BitCoin as Remittance Tool — 4 Things To Know

The plans that BitMari has in store for the nation of Zimbabwe are exciting, to say the least. Currently, Zimbabwe is experiencing an economic crisis that is financially stifling for its citizens and business. Through BitMari’s Bitcoin-based solutions, Zimbabweans will be monetarily empowered, especially in the sectors of remittance payments and business funding. This new way of sending/receiving money is undoubtedly enticing to a consumer base thirsty for answers. However, before delving into the world of Bitcoin/blockchain, there are few pertinent aspects of Bitcoin to understand.

For starters, Bitcoin is a cheaper alternative to the conversion fees of traditional financial institutions, Bitcoin is not fee-less. One example of a Bitcoin fee is known as the “Miner’s fee.” This is the standard fee to perform Bitcoin transactions. The Miner’s fee acts as an incentive/reward for Bitcoin miners to maintain the network. Neglecting the Miner’s fee may result in transactions being halted. The higher the Miner’s fee, the faster the transaction will be. There is also a Bitcoin withdrawal fee. While sending Bitcoin may only cost a few cents, actually withdrawing the money requires its conversion to local currencies. This fee depends on which service you use (BitMari only charges 3%).

Secondly Bitcoin is volatile, fluctuating currency. This means that the amount the recipient withdraws may be higher than what the sender sent. Bitcoin values may climb hundreds within a few hours or days. However, the opposite is also possible. It is up to the recipient to monitor network activity, then hold on to Bitcoins or cash them out accordingly

Lastly, like any other thing in the world involving money, the scammers are out there. It is important that people interested in pursuing Bitcoin are educated. One way Bitcoin remittance services differ from traditional ones is that photo identification is not required. Scammers are constantly looking to take advantage of account information and/or security keys and will lie and cheat to be able to usurp some or all of your funds. For those sending remittance payments back to likely unknowledgeable family members, TechInAsia makes the following suggestions:

• Educate them. Send them bitcoin security reading materials, covering 2-factor authentication and how to keep private keys, account details and PIN numbers safe. You may also want to send them a list of websites or services to avoid (or trusted websites), if a particular type of bitcoin scam is rife in the country.
• Maintain with cash-pickup services. Suitable for smaller remittance amounts to lessen the risk of theft. May not be suitable in some countries due to high crime rate.
• Otherwise, you can get them a bitcoin debit card. With a card in their possession, the sender can simply send money anytime s/he wants, and the receiver can use the card to make purchases or withdraw it as cash from ATMs.

Reference Article: Techinasia.com