A recent report published by one of India’s mainstream news publications, The Times of India, showcases that the majority of Indian diaspora working abroad, transfer money back to the homeland, of which nearly INR 15,000 crore ($2.3 billion) is lost in remittance fees.
India has the largest share in world remittance recipients, which according to the publication’s report, stands at 11.5%, closely followed by China at 9.8%.
The global average as remittance fees in the year 2018 was pegged at 7%. This constitutes a significant amount of the total money sent back to families by most Indian expats.
Can Cryptocurrency And Blockchain End Remittance Rip-Off?
As the report stated, the top 5 remittance markets for most money transfer firms are countries like India, China, Philippines, Mexico and France, of which only Philippines has adopted crypto-based services to end remittance rip-offs to some extent. India and China remain woefully ignorant of this amazing technology lying bare to be used.
Philippines itself has millions of workers abroad who use firms such as Lhuiller and Palawan to send and receive money payments at low remittance fees.
The first three countries in the list dominate the global remittance operations due to the extremely high number of foreign workers sending in money back home from nearly all quarters of the world. For some portion of the population, TOI reports, the extremely highly money transfer fees becomes even of greater significance due to this being their only source of income, in most cases.
Domestic remittances and cross-country money transfers are much cheaper as compared to cross-border transactions, which tend to get significantly reduced.
However, this is where blockchain networks and cryptocurrencies can reduce time and send money into virtually any country at just a fraction of the global average remittance fees.
Bitcoin is the most prevalent system being employed by its current users since it’s transactions fees are not reportedly percentage-based.
Can Bitcoin Be Implemented In India?
The India Government, as per a recent report, are still struggling to put in a place a crypto regulatory framework, failing to meet it’s set deadline over and over again.
However, this report should bring to light the quite visible loss witnessed in the inflow of foreign funds sent back to families in India, which bear a significant brunt by the currently dominative remittance powerhouses.
India, for one, should consider blockchain networks as a cross-border money transfer alternative, which will definitely help save the loss of billions of dollars.