Due to the high cost of sending remittances, bitcoins and other similar currencies have gained popularity. Using crypto like Bitcoin for remittances are not only more cost-effective but also faster and more efficient. When using conventional methods of sending money across borders, people often have to pay large amounts in fees and wait days before their loved ones receive the money they sometimes desperately need.
When sending a remittance suing bitcoins or other crypto currencies, not only do the receivers get their money immediately but it is also cheaper for the sender.
A recent report by Blockchain research firm Clovr found that more and more people are turning to crypto when they need to send remittances to their families.
If some of the largest companies in the world, like Microsoft and Starbucks, are comfortable accepting cryptocurrencies as a form of payment, this should instil confidence in using these new forms of payment for sending remittancesClovr
While there will always be detractors for every topic under the sun, it is worth a look at how Bitcoin for remittances can be more profitable. Read more here: Sending Money Back Home
Recently, Bitspark – a fintech startup based out of Hong Kong, announced that it has partnered with a local company in Pakistan to start offering Bitcoin based Remittances, that are cheaper, faster and more reliable than the competition.
This is a really interesting story, because of four things:
- State Bank of Pakistan, still does not recognize Bitcoins as any form of money &/or currency.
- UrduBit is not a licensed money exchange company in Pakistan and is neither approved by PRI (Pakistan Remittance Initiative) to do remittances into Pakistan.
- Netting off, or local based payout for remittances are not allowed in Pakistan.
- At present, Bitspark is not a licensed MTO.
Though UrduBit does employ an informal KYC mechanism to keep records of all its users and payouts/payins, how this will play long term in the eyes of the regulator remains to be seen.
For the record, such partnerships, I think, should be encouraged. They are beneficial to Pakistan.
However, barring the regulatory element, there is a financial element that needs to be looked at. Read my article on What Central Banks Look For In Bitcoin Remittances.
If UrduBit does indeed bring the foreign exchange back into the country and surrender it, then it is the perfect model for us to promote and encourage.
You can read Bitspark’s press release on this subject below.
Bitspark is happy today to be launching Bitcoin powered remittance payments to Pakistan! Send to over 40 banks in addition to cash pickup locations.
Source: Bitspark Launch Remittance Payments to Pakistan