Governments around the globe, including the so-called honorable and democratic nations like Turkey and the not-so-democratic countries like China, have been trying to bridge the burgeoning cryptocurrency sector.
One of the myths associated with cryptocurrencies is that they will provide a suitable and cheaper alternative to traditional money transfer instruments. The current financial regimen may be fraught with disadvantages, but does Crypto give a more convenient way to transfer funds or remittances?
Cryptocurrencies accounted for 1% of the volume of worldwide cross-line remittances.
Remittances are described as sending cash to help their families and networks back home. Therefore, it is a very crucial part of GDP for some nations. The total value of worldwide remittances amounted to US$700 billion in 2020. Of this amount, US$540 billion is noted to have been shipped off low-and center pay nations, as per the World Bank data. El Salvador is a very striking example, and it received US$6 billion as remittances. However, Cryptocurrencies accounted for 1% of the volume of worldwide cross-line remittances reports analyticsinsight.net .
Digital currencies will surely add up to the options available for the consumers, and it will indeed have an effect in the coming times. However, it is an option with several pitfalls and uprooting cash for many families who keep on depending on it.
Cryptocurrency is not an inexpensive option to other forms of money transfer.
As opposed to the existing myth, cryptocurrency is not an inexpensive option to other forms of money transfer. It is not even a simple form of money transfer since it involves the intricacies of changing over Crypto to/from nearby monetary conditions. Buying goods or services with any crypto coin must be converted into local currency in almost all circumstances. Hence it is torture for the millions of people who depend on remittances to cover their daily needs.
A recent overview revealed that for the ordinary American moving cash to take care of daily needs, which includes food (73%), medical care (59%), and lodging (54%). Crypto can ever act as a lifesaver since most ordinary Americans rely on it quickly. For the likes of Elon Musk and others, cryptocurrency may serve as a welcome indulgence. Still, beyond that, for a typical American, the nonerosion of the value of his saving is of the top priority. The volatility of Crypto pales when compared to other forms of currency.