Categories: CryptoNews

Bitcoin Remittance Solutions Are Not Always Cheaper

The remittance industry seems to be ripe for disruption thanks to blockchain technology. But a recent report from Equities Research shows that not everything is rosy. There are some limitations to take into account for companies dealing with Bitcoin, but other distributed ledger-based companies may fare better.

Blockchain in Remittance Remains Iffy

Various Fintech companies are eyeing the remittance industry, as this sector is prone to disruption. More secure solutions, at a lower cost for sender and receiver, are worth exploring. Interestingly enough, nearly all of these Fintech solutions are using distributed ledger technology to achieve their goal.

Among the Bitcoin companies exploring this industry are Abra and BitPesa, who built remittance solutions on top of blockchain technology. Ripple is an active contended in this field, albeit they use their own distribute ledger to achieve transfers. In fact, their technology has been trialed by Santander bank earlier in 2016.

But there are still some drawbacks to using Bitcoin in the remittance industry. Unlike what most people may want to believe, Bitcoin is not the cheapest solution compared to offerings such as Xoom, Western Union, and Azimo. That being said, there are competitive prices to be found, even though Bitcoin remains overall more expensive than

TransferWise when relying on third-party service providers.



Related Post

That being said, the blockchain will allow for much cheaper solutions in the long run. Bitcoin is still an effective alternative for users who send peer-to-peer payments without using third-party services. Business embracing cryptocurrency, however, will need to find a way to bring costs down to regain their competitive edge.

Moreover, these companies will face significant competition from existing and emerging players embracing distributed ledger technology in the coming years. Do not expect the transition to blockchain technology to occur overnight, though. Without making these solution appealing to customers, none of these efforts will succeed, though.

Image credit 1

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Dogecoin Millionaire Predicts This Undervalued Altcoin Could Match DOGE’s 2021 Gains

Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…

19 mins ago

Qubetics Presale Skyrockets to $7.5M as XRP and Arbitrum Lead Best Altcoins for Exponential Returns

The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…

1 hour ago

Over 300K Users Actively Mine Crypto On BlockDAG’s X1 Miner App While BNB Bulls Eye $3K; What’s XRP’s Price Target?

The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…

1 hour ago

Best Crypto Presale To Buy Now: Rollblock Delivers For Holders With New License, Record Sign Ups and 7000+ Games

Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…

5 hours ago

Polkadot And Uniswap Gearing For Post-Christmas Jump As Rollblock Raises $7.4 Million in Presale

While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…

6 hours ago

IntelMarkets (INTL) Receives Massive Demand From Chainlink And SUI Investors Looking To Position For The Best Bull Run Gains

As the cryptocurrency market gears up for a bull run, IntelMarkets (INTL) is attracting significant…

6 hours ago