Although there are many ways bitcoin can excel given the advantage that it holds due to its decentralized technology coupled with its low transaction fee, one particular area that stands out which the digital currency can capitalize on is the cross-border money remittance business.
According to World Bank latest data obtained in 2015, the business model currently dominated by banks and top remittance companies is valued to be worth at least $500 billion per year. As currently the gap between the high and low income earners becomes widened further fueled by the poor job market outlook in developing nations, these has encouraged the citizens to seek better employment opportunities working abroad as expatriate where there is higher pay and better remuneration due to the exchange rate factor.
Bitcoin advocates have long been eyeing this segment of market share as they believe it will be the key factor that will push towards higher demand that will eventually drive the price towards the upside. As the fees for the existing transfer mode is way too high (with some taking up to 15% depending on the sending amount) and coupled with the long waiting time needed before the fund reaches the receiver, bitcoin without any doubt can actually outperform its competitors.
Companies that operate the money transfer business will also be bound by the prevailing laws and regulations imposed by the countries where money transfer took place, the reason mainly is tax-related, this provides another good opportunity where bitcoin can play its role to offer an attractive and viable solution to overcome the problem.
Thus one must really wonder why despite all the advantages that it holds, bitcoin seems to be playing catch up with its competitors.
The main reason here is actually largely attributed to the obstacles that bitcoin is facing which I wrote earlier in my previous article that discussed on this issue. Not only that, it is presumed that most people does not yet truly understand the concept and learn how bitcoin works which could also be related to the education level of the migrant workers. All these together with the misconceptions have somehow delayed the progress.
Nevertheless, once the infrastructure has been set up and the words on bitcoin got out faster, it is a matter time that demand will skyrocket. Until then, the future holds bright and promising for those bitcoin adopters who believe and waited patiently.
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