• Coinbase estimates up to 97% of traditional remittance fees could be saved using crypto. 
• Transaction time compared to upto ten days in fiat to ten minutes in crypto is also crucial. 

Crypto assets, since their inception, were boasted to resolve inherent issues with the traditional financial system. Among many others, remittance was an issue to look over, and with time it even got bigger with the world becoming one trade village. 

However, remittance with the traditional fiat regime became tedious, guzzling time and money. Recent Coinbase research reveals how using crypto transactions, people could save “billions of dollars a year in remittance fees.”

Crypto Transactions to Save Billions of Dollars

In an April 3 post, Coinbase brought up several crucial factors in which crypto transactions could replace fiat currency systems for remittance. It reveals that a significant portion of remittance fees from the US on international transfers could be saved if similar transactions get executed in cryptocurrency. This may save a lot of time as well.

Coinbase’s research shows that considering 6.18% of the average fee rate in the US, native citizens end up spending up to 12 billion USD worth in remittance fees, alone. Considering the swift transactions using cryptocurrencies, where the average transaction traditionally takes at least one day and could go up to ten days, it may take around ten minutes easily! 

The pain multiplies when it comes to international transfers. 

The conversion fees charged on currencies’ conversion over the transaction fees are an additional burden on senders.

Significantly Lower Fees on Crypto Transactions

According to Coinbase, these transactions would be lesser if made using cryptocurrencies. It shows how transaction fees incurred on Bitcoin (BTC) transactions are, on average, 1.50 USD while approximately 0.75 in Ethereum (ETH).  

Compared to the World Bank’s set average surcharge of 6.3% as remittance fees in the traditional system, crypto transactions cost much less. Instead, the US leading crypto exchange estimates of conventional remittance regime could be 96.7% cheaper using Bitcoin (BTC) and Ethereum (ETH) like crypto assets. 

Research shows that by 2021, over 8% of the US population, or about 27 million people, will own cryptocurrencies. Cryptocurrencies’ growing popularity and acceptance will likely accelerate wider and mainstream adoption. With this ever-increasing, remittance fees will likely get resolved with a much larger impact. 

Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.