Will crypto remittances be the future of global money transfers?

cointelegraph.com:

In this era of global economies, where cross-cultural exchanges and international transactions are increasingly common, the demand for efficient and accessible cross-border money transfers has reached new heights of importance. Whilst traditional remittance providers have long dominated the market, the rise of cryptocurrencies has introduced a disruptive force that is challenging the status quo. As cryptocurrencies gain momentum, the question arises: Will crypto remittances shape the future of global money transfers?

This evolving payments landscape has opened up new opportunities and prompted us to rethink the traditional models of remittance services in the face of technological advances and changing consumer preferences.

Source: Unsplash

For several decades, traditional remittance services, such as Western Union, have been the go-to option for sending and receiving money across borders. According to the Migration Data Portal, global remittances reached a staggering $682 billion in 2022, with the top five countries being India, China, Mexico, the Philippines, and Egypt, demonstrating the global scale of these transactions. These countries have consistently been the top recipients of remittances since 2008, underscoring the importance of cross-border money transfers in supporting economies and livelihoods around the world.

These services have established a widespread network of physical branches and partnerships that facilitate the transfer of funds to various regions worldwide. However, despite their widespread use, traditional remittance methods suffer from several setbacks that limit their efficiency and accessibility, hindering the full potential of remittance flows.

The drawbacks of traditional remittance services