Using Bitcoin for Overseas Remittances

The global remittance industry is enormous as people leave nations gripped by hyperinflation or move to look for better opportunities abroad; sending cash back home becomes necessary. However, people now realize that it can be cheaper, faster, and more straightforward with Bitcoin. Sending this crypto asset is entirely digital, and does not have any physical borders like dollars or euros. If you are interested in Digital Yuan trading, now is your chance to invest there. Kindly visit yuanpay-group.de for a chance to invest bitcoin.

What’s more, you can send Bitcoin without sharing your personal or banking info, which is more secure. To send this virtual asset, you will need the recipient’s wallet address which is a long string of characters similar to a bank account number that identifies where the Bitcoin should go. 

On the contrary, you should keep a few things in mind when sending this virtual asset. For instance, you must ensure that you send Bitcoin to a Bitcoin address. 

Once your transaction is verified and confirmed, the digital asset will reflect in the recipient’s account. The process can take a few seconds or a few minutes. 

Sending this digital asset is easy and affordable whether your funds travel from across the room or worldwide. There are several ways you can send this digital money globally, such as:

Using a Bitcoin ATM

Bitcoin ATMs are fast nipping everywhere, with over 4,000 distributed around the globe. These digital asset ATMs allow users to use this virtual currency or fiat cash. As a result, they are a gem if you are looking for a way to send some money abroad. You only need to find a BATM, buy this digital money or any other cryptocurrency, send it to the recipient in another country, and then the recipient can sell the Bitcoin for cash at an ATM. The recipient, however, does not have to necessarily know about this digital money because they can make and send a photo of the QR code, and the sender can use this Bitcoin address directly. As a result, they can take out at the BATM cash only. 

On the other hand, ATMs tend to charge a higher commission, but their convenience comes with a price.

Bloom Solutions

A newer method of sending cash abroad is via bloom solutions which Luis Buenaventura founded. Bloom’s solutions aim to reinvent the remittances industry using Bitcoin. By focusing solely on Bitcoin as a mechanism for cross-border money transfer, Bloom allows users to sign up, and after approving your credentials, you get a rate for using the service. Later, you can deposit funds into your Bloom account, and Bloom takes care of their being sent abroad by sending them to a bank account or cash pick-up point. An email or SMS will confirm the completion of the transaction. 

Major Drawbacks of Bitcoin Remittances

One of the most significant concerns about international Bitcoin transactions is the possibility of using it for money laundering. Money Transfer Operators and banks have strict reporting requirements, and the Office of Foreign Assets Control strictly limits the countries and individuals receiving payments.

Along with that, sending this digital asset also has transaction fees which can be unpredictable. Service providers calculate Bitcoin fees on a per-byte basis rather than a percentage meaning that small transactions are comparatively more expensive. 

Most Money Transfer Operators operate through a more prominent remittance software provider (RSP) network like Western Union. An MTO may also need to pay regular charges for installation, subscription, and system maintenance. 

The Bottom Line

International remittances are one of the many financial industries suggested as a possible use case for Bitcoin transactions. Also, many startups provide software to facilitate Bitcoin remittances without requiring the users to understand cryptocurrencies.