Crypto-based remittance products along with decentralized exchanges are important contributors to the global success of bitcoin and other digital assets. Cheaper, faster, and more efficient than 3rd party payment services- cryptocurrencies are quickly becoming the preferred alternative for cross-border payments. This trend is noticeable worldwide, especially in the Middle East and South Asia.
The Crypto Craze is Real
Blockchain is at the forefront of the most promising emerging technologies. Unlike technologies that require a complete overhaul to function, blockchain’s decentralized ledger-sharing methodology runs parallel to existing systems.
The research and rapid progress in the crypto domain surrounding Bitcoin or Ethereum have made it easy to remit money from one place to another. Assets like Ripple or Dash are also seen as viable alternatives, with transaction costs lower than Bitcoin. Assisting through providing liquidity to the crypto ecosystem or staking yields attractive rewards too.
Meanwhile, trading in cryptocurrencies has been hugely popular across the entire world. Decentralized crypto exchanges function in a way similar to both forex and stock exchanges, with lesser processing fees. As of today, the global cryptocurrency market cap stands at USD 2.85 trillion, with 13898 crypto trading options to choose from, 429 exchanges, and a 24-hour trading volume surpassing USD 135 billion.
Crypto Remittance: An Alternative Payment System for Ex-Pats
Countless people arrive in the Middle Eastern region from different parts of Asia for employment prospects. India, Bangladesh, Pakistan, Indonesia, Malaysia, and the Philippines form a huge section of ex-pats working in different countries. A notable percentage among them are trying different crypto products for remittance, or transferring funds in their native countries. SWIFT, wire transfers, or other conventional payment processing options charge large commissions in the middle. Hence, a growing section of the population is shifting towards cryptocurrency.
A Chainalysis report highlights the driving impact of remittance behind Africa’s growing crypto economy. Almost $562 million worth of digital assets were transferred internationally through retail remit-based payments in 2020 alone. Similar trends are also witnessed across Latin America. Payments in bitcoin increased more than twice to $3 billion within a year in 2020. Workers from Indonesia, Malaysia, and the Philippines have also adopted crypto, increasing cross-border remittance payments over 10 times within 2020.
Also Read: 10 Reasons To Use A Crypto Payment Processor
Crypto Remittance in the Middle East and South Asia
The crypto community has a strong presence in India. The country’s central bank uplifted its long withstanding ban on cryptocurrencies sensing the enormous scope and growth potential of digital assets and the underlying technology. Today, India ranks among the nations with the highest number of crypto users.
User-friendly bitcoin remittance services have popped up across nations like the Philippines, Afghanistan, Lebanon, and Turkey. Preferences vary, USD-pegged stablecoins with less volatility are the choice of remittance in several regions. The Bitcoin-based remittance services are currently a lifeline after the Western Union withdrew its operations in Afghanistan. Crypto-based products such as DeFi are also widely in use.
There are already more than 10 fully operational crypto exchanges in India. The number will increase with several others poised to offer crypto-trading services soon. The crypto enthusiasts and owners as mentioned above do not only trade by themselves but rope in others as well. Rather than being a setback, the volatility of crypto markets also brings in seasoned traders.
Enterprises or investors looking to set up a cryptocurrency exchange no longer need to build up a trading platform software from scratch. One can skip past waiting for software development, scouting for resources, failures and trial runs. HashCash Consultants offers custom white-label cryptocurrency exchange software to skip past the long drill.
HashCash Crypto Remittance Services
US-based global blockchain development company HashCash Consultants excel in remittance-based services across international borders at the lowest rates. The company’s flagship HC Remit product simplifies the whole process by eliminating 3rd party processing platforms and payment gateways in between. This drastically reduces the processing time as well as expenses. The product also powers users with traceability and transparency.
Features of HC Remit
The innovative blockchain-powered financial product is used by countless banks, exchanges, and financial institutions on a global scale. The highlights of the HC Remit product include:
- Live tracking of transactions within an agile dashboard.
- Option to quickly add partner banks and financial institutions within the Network.
- Streamlining international currency exchange processes during remittance.
- NOSTRO accounts and fund monitoring in real-time.
- An accessible dashboard for tracing payments to the concerned stakeholders.
- Smart contracts for automatic execution of transactions and business operations.
- Lower liquidity costs through ad-hoc funding.
Low transaction processes, better speed, and real-time traceability has resulted in a massive rise in crypto-based remittance services, especially in the Middle East. Trends indicate further development and adoption leading to banks and financial institutions quickly incorporating crypto remittance within their traditional structure, with help from blockchain developers.