Bitcoin, but also stablecoins, generally provides more accessibility than traditional banks.
20% to 38.5% of the gross domestic product of nations like El Salvador, Haiti, and Tonga comes from remittances of money. Stablecoins that are tied to the U.S. dollar, such as USD Coin (USDC) and Tether (USDT), can guarantee that receivers receive a larger portion of transferred funds without middlemen taking a cut in the form of transfer fees, as reported by Cointelegraph.
According to Cointelegraph, with some banks charging 3% to 5% and others a set fee of $25 to $45, SWIFT transfers can be expensive. Western Union transfers typically cost $25 when made online, $2.99 to $29.99 when made with a credit or debit card, and $7.99 when made in-person.
On the other hand, sending stablecoins like USDC can cost between $3 and $5 on the Ethereum blockchain and less than $0.01 on the Cardano, Tron, and BNB Smart Chain blockchains, Cointelegraph stated.
For those in developing nations or with lesser incomes, saving an extra $20 to $44 on transaction fees may not seem like much, but it makes a tremendous difference. The typical monthly wage in Venezuela, for instance, is about $25.
These deposits enable people to benefit financially from family members who work abroad. The extremely low rates and quick transaction times will also enable family members to send money home more regularly. Ben Caselin, head of research and strategy at AAX — a cryptocurrency exchange — told Cointelegraph,”Bitcoin, but also stablecoins, generally provides more accessibility than traditional banks, especially in emerging markets where large populations often find themselves unbanked either due to lack of infrastructure or documentation or exclusion on the basis of social standing, gender, religion or political viewpoints.”
If users in developing countries don’t want to cope with the volatility that comes with regular cryptocurrencies, they can also hold stablecoins. For consumers who want to maintain their money in a cryptocurrency tethered to the dollar, Tether and USD Coin are excellent choices, Cointelegraph noted.
Source:financialexpress.com