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Remittances are the money sent back to their home countries by people working abroad. It is an important sector for the economies of many countries, especially developing countries like Bangladesh. However, traditional remittance methods such as banks and money transfer services are often slow, expensive and complicated. Cryptocurrencies are solving this problem and opening up a new horizon for international remittances.

Problems with Traditional Remittances

There are several important problems with the current remittance system, due to which people living abroad often face difficulties

High transaction fees : Traditional financial institutions charge high fees for international money transfers. This fee depends on the amount of money transferred. As a result, even sending small amounts of money costs a lot. These high fees create a big burden on remittance senders.

Slow transaction process : Sending money through the banking system usually takes a few days. This is because there are various verification processes to be completed here, such as verifying the transaction through the SWIFT network. This long time often creates problems for urgent needs.

Complicated process : Sending money usually requires filling out various forms and going through a complex process of identity verification (KYC). This process is time-consuming and not accessible to everyone, especially those who are not that technically savvy.

Cryptocurrency Solution

Cryptocurrency has emerged as a viable alternative to solving the problems of traditional remittances

Low transaction fees : The fees for transferring money through cryptocurrencies are much lower than conventional methods. In some cases, it is almost nominal. Because there is no intermediary. The transaction goes directly from the sender to the recipient. In this, expatriates can send a large portion of their earned money to their families.

Fast transactions : Transactions are completed within minutes using blockchain technology, which is much faster than the conventional banking system. This is very useful for sending money in times of emergency, as the recipient receives his money in a very short time.

Simple process : There is no need to fill out any complicated forms to send money through cryptocurrencies. All you need is a crypto wallet. This makes the process much easier and hassle-free.

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Future prospects and risks

Cryptocurrencies can greatly impact the remittance market in the future. On the one hand, it will increase financial inclusion, and on the other hand, it will reduce the cost of sending money to expatriate workers. Stablecoins such as USDT or USDC allow for the transfer of funds at a stable price, as their value is usually pegged to a stable currency such as the US dollar. This greatly reduces the risk of price volatility.
However, this also comes with some risks.

Price volatility : The price of cryptocurrencies can fluctuate very rapidly, which can lead to unexpected losses during transactions. Stablecoins are working to address this issue, although they are working to address this issue.

Unregulated : Many countries still do not have clear laws or regulations on cryptocurrencies. As a result, this can increase the risk of financial fraud or illegal activities.

Technical knowledge : Using crypto requires certain technical knowledge. It may not be easy for everyone, especially those who are not used to using digital devices. However, despite these risks, cryptocurrencies are rapidly gaining popularity as a new and improved way of remittance. It is not only making financial transactions easier, but also moving towards a global, transparent and cost-effective financial system. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

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