Total remittances in 2014 reached $583 billion which is more than
double the official development assistance (ODA) in the world. Whereas India received $70 billion, Chinese were able to send $64
billion back home. Another major economy that receives huge remittances
is the Philippines, it got $28 billion. In line with the expected global
economic recovery next year, the global flows of remittances are
expected to accelerate by 4.1% in 2016, to reach an estimated $610
billion, rising to $636 billion in 2017.
Some economies depend heavily on workers’ remittances as these are a significant part of capital flows. However, as a huge chunk of this capital goes back to payment processing companies like PayPal, MoneyGram, Western Union Money Transfer, etc. amongst others, they are looking for an alternative and Bitcoin looks like a fresh air for them.
The digital currency is emerging as a right solution for people who may have to pay up to 10% of the total remittance. Though even in Bitcoin money transfer remittance remains deeply dependent on third parties as banks are still validating money transfers from senders to the remittance operator and again to recipients, it has developed cheaper payment processing.
Some economies depend heavily on workers’ remittances as these are a significant part of capital flows. However, as a huge chunk of this capital goes back to payment processing companies like PayPal, MoneyGram, Western Union Money Transfer, etc. amongst others, they are looking for an alternative and Bitcoin looks like a fresh air for them.
The digital currency is emerging as a right solution for people who may have to pay up to 10% of the total remittance. Though even in Bitcoin money transfer remittance remains deeply dependent on third parties as banks are still validating money transfers from senders to the remittance operator and again to recipients, it has developed cheaper payment processing.
