A recent report by blockchain research firm Clovr highlights a significant rise in the use of cryptocurrencies for international remittances. The study attributes this growth to the high costs associated with traditional services like PayPal, Western Union, and MoneyGram.
Crypto Becomes Fourth Most Popular Remittance Method
Based on a survey of 707 U.S. residents who send money abroad, the report titled “Sending Money Back Home” found that 15.8% have used cryptocurrency to transfer funds. This places crypto in fourth place among remittance methods, behind online services, money transfer operators, and bank wire transfers. Traditional methods often impose extreme fees—for example, sending money from South Africa to Malawi can incur charges exceeding 20%. In contrast, using Bitcoin (BTC) or Bitcoin Cash (BCH) can eliminate such costs and even generate small profits through currency conversion.
Cost Comparison: Crypto Clearly Wins
When comparing the cost of sending $500 abroad, banks charge an average of 10.41%, while postal services cost $34. Using Bitcoin, users can convert fiat to crypto and back again, potentially achieving net savings. The report notes: “By avoiding high transaction fees and conversion rates, you can take a few extra steps and get significant savings.”
User Demographics and Satisfaction
The survey shows men are more likely than women to use crypto for remittances, and 85% of crypto users reported satisfaction with the method. Those who avoided crypto cited a lack of understanding. Most remittances from the U.S. go to Mexico, China, India, and the Philippines, with 41% spent on food. In crisis-hit nations like Venezuela, expatriates increasingly rely on Bitcoin to support families back home.
Clovr concluded: “If giants like Microsoft and Starbucks accept cryptocurrencies, it should instill confidence in using them for remittances.” With over $148 billion sent from the U.S. in 2017 alone, crypto is becoming a rational choice for cost-conscious migrants.