Cryptocurrency Could Save American’s 96.7% in remittance fees : Coinbase Report Reveals"

Americans spend more than US$12 billion each year on remittance fees when sending money to their family and friends living overseas using the traditional financial system. This massive amount of money spent on remittance fees is a significant burden for people who want to help their loved ones financially. However, with the rise of cryptocurrency, this financial burden can now be significantly reduced. According to research by Coinbase, one of the largest crypto exchanges based in the U.S, overseas remittances using Bitcoin and Ethereum cost 96.7% less than traditional remittance methods.

The U.S. average fee rate of 6.18% is a significant amount that people are paying as remittance fees. The average yearly spend of US$12 billion is a considerable amount that could be put to better use. Coinbase has stated that people should not have to spend money to send money, and this statement is especially true when it comes to sending money overseas.

Sending Bitcoin to another wallet costs US$1.50 per transaction on average, while an Ethereum transaction costs US$0.75. These fees are significantly less than the fees charged by traditional financial institutions. With the use of cryptocurrencies, people can save a lot of money that can be used for other important things.

Remittance through the traditional banking system takes an average of 1-10 days as it has to go through many intermediaries and functions during fixed banking hours. This long waiting period can cause a lot of stress for people who need the money urgently. On the other hand, the average waiting time for crypto transfers is about 10 minutes. This quick transfer time makes it easier for people to receive money when they need it the most.

Close to a billion people globally depend on remittances, either by sending or receiving them, and close to 800 million people depend on money sent by their family members living elsewhere for work, according to the United Nations. These statistics show how important remittances are for people who depend on them for their livelihood. With the use of cryptocurrencies, these people can receive money more quickly and at a much lower cost than they would have with traditional remittance methods.

“We need our American regulators to see the true value of responsible crypto products and services and their ability to update an antiquated system,” Coinbase said. This statement highlights the need for regulators to recognize the benefits of cryptocurrencies in the remittance market. The use of cryptocurrencies can help to reduce costs and make the remittance process faster and more efficient.