Bitcoin Remittances Could Lower Cost of Sending Money

Bitcoin remittances and other virtual currencies are increasingly being used to transfer money from one person to another. Whether it is for retail purposes or for personal payments, there is no doubt that the cost of sending money is just too high.

bitcoin remittance better than other options

Source: World Bank’s December 2018 report on global trends for remittance prices. 

For example, Indians paid 2.3 billion dollars to send money last year alone. As one of the biggest remittance recipient countries in the world, surely a better alternative must be found.

The same applies to all the other remittance receiving countries like Nigeria, Philippines, Mexico, Egypt and China. According to the World Bank:

Sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4 percent.

World Bank

Using bitcoin remittances services could help lower this cost and make it possible for migrants and workers in foreign countries to send money to their families without worrying about high fees. It is already becoming quite popular as a way to transfer money.

Read more here: Over $2.3 Billion Was Paid In Money Transfer Fees In India Last Year – Would Use Of Bitcoin Bring Down Costs?

Bitspark Launch Remittance Payments to Pakistan

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:

  1. State Bank of Pakistan, still does not recognize Bitcoins as any form of money &/or currency.
  2. UrduBit is not a licensed money exchange company in Pakistan and is neither approved by PRI (Pakistan Remittance Initiative) to do remittances into Pakistan.
  3. Netting off, or local based payout for remittances are not allowed in Pakistan.
  4. 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