It is evident that Bitcoin is making a significant impact on the travel sector, albeit not necessarily in ways most people would anticipate. Unlike traditional currencies, Bitcoin can be used to convert a local currency to a foreign one without much trouble. More importantly, it reduces most exchange rate fees and does not require a bank account or payment card to do so.
The Benefit of Using Bitcoin To Obtain Foreign Currency
Although these features are not supported in every country, Bitcoin is a valuable means of exchange in The Philippines. People who travel a good deal to and from the country will find themselves struggling to access cash now and then. Exchanging normal currency for its foreign counterpart can be challenging, and it is a rather costly endeavor as well.
Thankfully, Bitcoin presents a more than viable solution to circumvent both the wait times and the hassle of relying on banks or exchange offices. Using a debit card to pay for overseas expenses is not impossible, but it can be quite expensive as well. In most cases, there is a horrible exchange rate plus a local bank fee to take into account–not a fun experience for people traveling to the Philippines from outside of the Asian region.
The way Bitcoin alleviates these concerns is by letting people withdraw cash directly from major bank ATMs free of charge. This feature is made possible through Coins.ph, a local cryptocurrency company which has made a significant impact on the cryptocurrency ecosystem in the region over the past few years.
This is how the conversion works. It is possible to buy bitcoin, or use an existing amount of funds, and transfer it to the Company’s wallet. One of their withdrawal options includes converting the funds to code, which can be entered at a local bank ATM. Through this code, the funds will be converted to a cash balance which can be withdrawn free of charge.
This feature also means that anyone owning Bitcoin can withdraw local currency without being a customer of that specific bank. This is rather unique, as very few banks in the Western World allow for such a service unless the person owns a payment card. Spain is one exception in this regard, although it is not unlikely that a similar service will spread to the rest of Europe in the coming years.
Do keep in mind that the conversion process through this company still invokes a smaller fee, but it is less compared to what one would pay through bank transfers or FX offices. Even though some people may argue that this is only a limited-use case for Bitcoin, it is still a good way to showcase what cryptocurrency can do.
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