Top US crypto exchange Coinbase thinks Americans could save billions of dollars a year in remittances by using digital assets.
Coinbase notes in a new blog post that banks charge Americans an average remittance fee of 10.8%, money transfer operators charge an average of 6.2% and post offices charge 5.5%.
“Americans spend over $12 billion a year in fees just to send money to friends and family abroad. These remittances are a vital lifeline for underbanked communities, enabling those who need it most to buy essential household goods, invest in healthcare and fund education.
Yet the process for international transfers is shockingly slow and expensive. Crypto international money transfers are significantly faster and over 96% cheaper, substantially relieving the burden placed on communities who wish to provide support for their families and friends abroad.”
Coinbase argues crypto could dramatically reduce the amount of money spent by Americans on remittance fees per year.
“Cryptocurrencies like Bitcoin or Ethereum can greatly cut the cost of sending money internationally by about 96.7% vs. the current system. Sending Bitcoin to another wallet costs an average of $1.50 per transaction, and Ethereum costs an average of $0.75 per transaction. These numbers speak for themselves. The burden of fees can be removed.
It is not just the dollar cost. The time cost is just as immense and inconvenient with the average remittance taking 1 to 10 days. Cryptocurrencies are also faster; the average wait time for crypto transfers is 10 minutes.”
Coinbase also notes that Americans sent $67 billion in cross-border payments to Asia and $52 billion to Mexico last year. Americans actually handled nearly 95% of the remittances sent to Mexico last year, according to the exchange.
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Source: https://dailyhodl.com/2023/04/06/coinbase-says-crypto-can-save-americans-billions-of-dollars-a-year-in-remittance-fees/