Blockchain Use to Allow Faster Overseas Remittance

blockchain remittance

Financial technology or Fintech for short is speedily embracing potential blockchain applications as a whole across the board and several players in the area appear enthusiastic to try out its overall efficiency in this arising technology in the most disruptive and fastest way possible. It is apparent that there’s much space for growth with regards to remittances through distributed ledger technology.

Existing Available Remittances Takes So Much Time

Nowadays, anyone who deals with major bank institutions is knowledgeable of what’s involved partially on the user’s end, with regards to overseas money remittance. First is, it requires so much time. When you do fund transfer between speedy affiliated banks, a number of institution can able to do it up to at least five days or maybe even more.

Blockchain technology can be really useful in cases that you need to have an instant solution to substitute it. Cryptocurrencies that have already proven themselves on blockchain technology are able to do a much secured fund transfer within minutes.

Fund Remittance Cross-Border Costs So Much

Cross-border fund remittance’s second problem is due to its restrictive cost. Since we have a simple but wonderful networking technology enabling it to cut fees and time, blockchain remittances are way more secure and cheaper for both end user and financial bodies. For someone living in developed nations who regularly send money for their families back home or overseas, the conventional bank’s fee can be as much as hundreds of dollars, most likely because of being charged for sending and receiving funds.

For those people in developing countries, their need for low-priced remittances is even higher. In countries like Philippines and Nigeria, their GDP’s massive fraction is from remittances which is 10% and 4% respectively. Every amount spent on associated fees for sending the remittance will most likely be used elsewhere.

Providing Options to Those Who Are in Need

Finally, having access to conventional banking solution for the developing nations may be a huge issue for most people to prevail over in their endeavour for money transfer. Granting that all bank systems are readily available, however not everyone can gain access to them. Since having a more widely distributed solution due to blockchain technology stops the nearly monopolization of mega-banks with regards to overseas remittances and provides more options to people who highly need them.

Blockchain technology provides us the ability to change and improve radically on the efficiencies of many true and tried industries that we may have believed as being slow, complex, big but reliable ultimately. When we add. If given the chance to count in expertise for forefront industry with the blockchain technology, fascinating fresh innovations are able to possibly help people around the world with not merely revolutionary new abilities and features but also more transparency and reliability in the process.

Written by Melvin Draupnir on May 23, 2017.