Shipments involving conventional channels tend to be very expensive. Find out how migrants integrate bitcoin (BTC) and other cryptoassets to overcome this restriction when sending money home.
The World Bank recently published a report indicating that the costs of transferring money to sub-Saharan Africa through traditional channels are among the highest in the world. In fact, they are estimated to average around 7.8% per $200 sent.
Firstly, this percentage is higher than the percentage corresponding to international fund transfers, which is 6%. In addition, it is almost three times the rate that the UN will target by 2030 within the framework of the Sustainable Development Goals (SDGs). Under these conditions, achieving this result seems illusory. This will seriously slow down the fight against social inequality.
Bitcoin as a better alternative for migrants
The traditional circuits used to transfer funds are characterized by high costs and particularly strict requirements in terms of identification (KYC). Therefore, the need for migrants to find other ways to send money to their relatives safely is a big question. So they are turning more and more to cryptocurrencies, which offer an excellent answer not only in terms of cost, but also flexibility and speed.
A study by Chainalysis found that Africans living abroad use crypto platforms more peers to peers to send funds. In fact, it shows that in the period from July 2020 to June 2021, an overall amount of 105.6 billion dollars in cryptocurrencies was sent to Africa. A significant financial mass showing real enthusiasm for crypto-assets on the continent.
Bitcoin and altcoins have repeatedly shown their strengths over the traditional financial system. That is why, instead of banning them as some regulators do, it is time to frame them with fair and equitable regulations.
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I came to blockchain out of curiosity and stayed with it out of passion. I was amazed by the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.