How Blockchain Already Changes The Way We Send Money
- Written by News Company
Even though we are still quite far from an official global adaptation of cryptocurrencies as the main means of payment, we are already benefiting from blockchain-powered transfers.
Old-school Money Transfers
We are already used to making bank wire transfers or using remittance companies such as Western Union to handle our international transactions. And as we are living in the age of globalisation, we tend to make these international money transfers quite often. You can simply order goods and services from any part of the world. Moreover, you can do remote work for a company with headquarters thousands of kilometers away from your place and get the salary sent to your local bank account.Most of such transfers are conducted via SWIFT network. It is a special interbank communication system to help financial institutions inform each other about the requested payments. It’s in a way a secure and standardized messaging tool to eliminate language barriers and validate the transfers to avoid international money laundering. If you want to learn more on what is SWIFT and how it works you can read this article.Such transfers usually take around 3-5 business days to reach the recipient and can cost up to $25 per transaction. If you are familiar with blockchain technology you already see how much room for improvement there is…
What are some good online money transfer platforms?
If you want to learn more about this platform read this TransferGo Review.
If you want to learn more about this platform read this WorldRemit Review.
If you want to learn more about this platform read this Remitly Review.
If you want to learn more about this platform read this MoneyGram Review.
Blockchain technology makes sending crypto coins fast, secure and cheap. To send BTC, LTC or ETH one has to pay less than $1 and the recipient will get the payment within minutes directly to his personal digital wallet.However, we are all aware that there are still some obstacles these digital coins have to overcome before they can be widely accepted. The major problem lies in the uncertainty and fluctuations of their value. Then, there is a lack of government acknowledgement and regulations. Also, not many places accept them, so you can’t spend the coins easily.It is obviously changing. However, before we get there, some old-school money transfer platforms already found a way to utilize blockchain for regular fiat money transfers.
Blockchain Transfer Fusions
As we’ve mentioned before, most international transfers use the SWIFT network. Now, there are some attempts to improve on the idea behind it and utilize blockchain as the processor of the transaction information. The most known and functioning network is RippleNet. Some mainstream banks and notable financial institutions are already connecting it to their operations.Some remittance platforms report that blockchain helps them to lower the transfer costs and reduce transaction time.
Some notable remittance companies such as Azimo are already conducting part of their transactions with the help of Ripple’s technology. It is also used by MoneyGram or Ria Money Transfer. The trend also grows in Asia, where platforms like Sentbe or Hanpass, as well as mobile cross-border remittance service WireBarley are lowering the transfer costs because of blockchain.It is not surprising that more and more companies are researching this technology. JPMorgan, a financial giant, announced that they will create their own blockchain-based system to help move money between their clients.