We need digital remittance today, more than we ever had. After the COIVID 19 pandemic breakout, the remittance industry saw a total breakdown of the industry. It might sound rude, but this break down has provided cracks for the cryptocurrencies to seep in. There is a vast Crypto industry waiting for opportunities to rule the world of fiat currencies.
The bilateral industry of the remittance is slow and expensive. It caters to some of the best products that you can get in the market. The products are so valuable and intriguing that people stand in a long line to buy them with physical cash. For some countries, the remittance industry is vast, making up 20% of the total GDP.
If we consider the GDP as mentioned above, then the average transfer cost is around 7.5%. However, after the pandemic hit the world with its huge waves of a tsunami, Digital currency has found an opportunity to grow its roots in the remittance industry.
After seeing the breakdown of the remittance industry, the world bank has predicted a sharp decline that might further deteriorate the situation. To maintain the current position, we would be able to see people using digital money as a cheap and instant transfer solution.
The situation itself has provided opportunities for aspiring entrepreneurs to open up Crypto start-ups to disrupt the remittance market. In the post-COVID 19 worlds, companies like https://cryptogroupsoftware.com/ and Telcoin will play an essential role in bringing back the global economy to its former glory.
International market of Remittance during COVID 19
Remittances are a vital source of income for countries with a low economy. People send money to their home with a reliable network. And this helps the respective government to earn a considerable amount of money. However, with the COVID 19 pandemic still lingering outside, people find it hard to find a network to send money to their loved ones securely.
Also, we all have seen that the people who were relieved from their jobs are migrants. This has directly influenced their economic means to send money back to their home. With the increase of the new infection case number, we can predict that people will require a new secure portal, networks, and money transfer gateway for money transfers.
However, we cannot forget that the crisis’s duration also plays a vital role in directly affecting the remittance industry. It is more likely that the more developed countries will recover faster than that of the underdeveloped countries.
Remittance Incumbents Versus Telcoin
If you see globally, you will find that the Remittances are expensive and average up to 7.5%. So why are these services so valuable? The reason is very simple. To operate these services, remittance incumbents need to open offices in the physical location. There need to have at least one office at the sender location and one office at the receiver location. Only then the transfer of the money can be considered secure. Then other official paper works need government permission and taxes that they have to pay at the end of the business year.
Earlier, you were required to have a KKYC (Know your customers), that means physical location was mandatory. But today, you can transfer the money with the help of digital platforms.
With technological innovation and e-KYC, you can use digital media and platforms to transfer money from one place to another securely. The best part of this media is that overhead costs are reduced to almost negligible. This process of transferring money with the help of the digital platform is not only cheaper but is also safer than traditional means.
Cryptocurrencies: Has the time finally come?
With several waves, cryptocurrency has finally reached the shore of the global financial market. With an unknown entity in the market, most people do not know what to do with the cryptocurrency, much less where it can be used.
But now that the remittance market has finally given some space foe the cryptocurrency to seep in, you can expect new prospects shortly.