Every person can’t work in their own country and still make a lot of money. Therefore, they shift to another country to work and send money to their hometown. These are considered to be cross-border remittances. Also, it is not just a small concept but a whole industry that is the racing nowadays in our country of the world. But, if you want to make cross-border remittances with the PF money, you may go through the high paperwork and a lot of additional paperwork on the BitQS. That is making the cross-border remittance industry quite complicated, but this complication can all be eliminated with the help of cryptocurrencies nowadays. If you use cryptocurrencies for sending cross-border remittances, you will see that many things will be sophisticated and come at a cost that will be declined.
According to a report from 2019, the cross-border remittances in the low and middle-income countries were as high as $550 billion. On the contrary, the COVID-19 pandemic led to a decrease in these figures, but still, any changes were as significant as $540 billion in 2020. Therefore, there is not much divide in the cross-border evidence even though there was the cross border and Amit and his falling throughout the year. So, Blockchain has a lot of implementation in the cross-border remittances industry, and it is required for the cryptocurrency market to benefit this industry. Suppose the cryptocurrencies are added to the cross-border remittance industry. In that case, there will be a lot of modernisation in it, and it will also be easier for you to send and receive money from overseas.
The remittance industry
If you make a typical payment and involve fiat money in cross-border remittance, you will get scammed by the government itself. You are going to pay taxes in the country from which you are sending the money, and also, the receiving country will be imposing taxes on the amount that you are sending. In addition, a money transfer operator is involved, and the banking system is also involved in this kind of transaction. So it will be a huge cost that you will incur on the transaction you are making through cross-border remittance.
Moreover, it depends on the amount you are sending because the higher the amount, the higher the charges you will pay. This is because the financial infrastructure of the government is quite expensive, And you will find that over 5% to 9.3% of taxes are divided on a $200 remittance on average. However, it may vary from your origin country and the destination country of transport. The banking system also involves knowing your customer and anti-money-laundering regulations, which may further increase the taxes.
How will bitcoin influence?
For the past few years, bitcoin has been suggested as one of the most suitable mediums for international transactions. One reason for this is that cryptocurrencies are borderless, and apart from that, anyone can use Blockchain technology; therefore, there is no requirement for a banking system or intermediaries. When these intermediaries are a hundred per cent eliminated from the transactions at the international level, there will be lower transaction costs and lower complications. Hence, making a payment using cryptocurrencies like bitcoin will be cheaper and more sophisticated than the traditional system of sending remittances. Nowadays, many companies opt to send money to their employees sitting in any other country to decrease the cost and provide the right amount to their employees.
Nowadays, it is being encouraged by many countries as well as companies. They offered to provide bitcoin remittances without making people understand Blockchain technology. Satoshi Nakamoto started the industry for making payments, and many companies are making the full use of it. We can take the example of the Philippines, Canada, Japan or South Korea regarding cross-border remittances. These nations have been supporting the concept to a large extent and are also benefiting from this incredible technology flourishing nowadays.
A few concerns
As per the conception of different nations, cryptocurrencies, if used as a medium of international remittances, would further provoke money laundering. They can also be involved in the transfers of terrorism financing, which is not supportive for any nation in the world. Banks and money transfer operators have many requirements, rules, and regulations for facilitating international remittances. When the regulations are missing, cryptocurrencies will be employed for illicit activities.
