Coinbase Claims Cryptocurrency Remittance Fees Abroad are 97% Cheaper than Traditional Finance
In a recent blog post, Coinbase highlighted the potential of cryptocurrencies to revolutionize the remittance industry. According to Coinbase, Americans pay over $12 billion in annual fees for remittances to family and friends abroad using the existing traditional financial system. However, by using cryptocurrencies like Bitcoin and Ethereum, the cost of remittance can be reduced by more than 96.7%.
Coinbase pointed out that the average transfer fee in the US is as high as 6.18%, while the average cost per transaction to transfer Bitcoin to another wallet is only $1.5, and the average cost of an Ethereum transaction is $0.75. Additionally, remittance using cryptocurrencies is much faster than traditional methods. The average wait time for cryptocurrency transfers is about 10 minutes, while sending money through the traditional banking system can take from one day to as long as 10 days.
Coinbase believes that cryptocurrencies have excellent financial inclusion and reciprocity. They argue that remittances are an important lifeline to underbanked areas and a way for those who need them most to buy essentials, go to hospitals, and raise funds. The United Nations estimates that about 1 billion people worldwide need remittances abroad, and about 800 million people are reported to be living on money sent by family members who work elsewhere.
The current remittance system is surprisingly slow and expensive. Coinbase hopes to see the ability of US regulators to face the true value of responsible crypto products and services and improve outdated systems. They believe that crypto transfers abroad are much faster and cheaper, which will greatly reduce the burden on communities looking to support family and friends abroad.
In conclusion, Coinbase’s blog post highlights the potential of cryptocurrencies to disrupt the remittance industry. Cryptocurrencies like Bitcoin and Ethereum offer a much cheaper and faster alternative to traditional remittance methods, which can greatly benefit underbanked areas and communities looking to support family and friends abroad. Coinbase hopes that US regulators will recognize the value of responsible crypto products and services and work towards improving outdated systems.
Read more:
- Coinbase Launches Base, An Ethereum Layer 2 Network Using Optimism’s OP Stack
- Coinbase Dominates US Crypto Market With 76.2% Market Share In March 2023