How Bitcoin Is Working To Currently Replace Western Union And The Remittance Industry
The global remittance industry could be completely revolutionized with Bitcoin (BTC). At the moment, there are more than $600 billion moved annually from different countries, including the United States.
Cryptocurrencies are also great tools that would allow for smaller, cheaper and faster transactions to take place. Virtual currencies would make the whole process error free and also trustless.
During a conversation with BlockPublisher, the COO at MarketOrders, Sukhi Jutla commented:
“Bitcoin was the first use case for payments and financial transactions. Its relevance for the remittance industry is therefore very high and relevant. It’s a proven model and one of the most trusted crypto’s out there.”
The Money Transfer Operator (MTO) is an important player in the whole remittance process since it supervises transfers that are sent to another country. MTO allow individuals and companies to send money abroad paying a fee for the service. The MTO is backed by Remittance Software Provider (RSP) such as the widely known MoneyGram and Western Union.
There are just a few large players in the market, including MoneyGram and Western Union. They have several locations and jurisdictions supported and they are both known around the world. Moreover, they have no fixed transaction costs and their share is different from location to location.
Nevertheless, the remittance industry should perform better and reduce costs while improving its transaction times.
Bitcoin could be a very useful solution to these issues. The digital currency ensures the security of the transactions and also the speed of the transfer. At the same time, transactions can be validated without third party involvement. Although it is not free, the fee of the Bitcoin network is minimal compared to the current system.
There are already some companies that are trying to release their own virtual currencies to improve their services and remain in control of the means of processing the transaction. JP Morgan is currently working on the JPM Coin. As Signal Profits’ founder, Mark Moss, says, these firms do not realize how cryptocurrencies will replace their business.
With Bitcoin, people have real ownership of their money and funds. They can also transact funds at all times and anywhere around the world. In the future, Bitcoin could grow as an alternative to the current systems.