Fintech as general is quickly adopting potential applications of the blockchain technology across the board. Now, a lot of players in the space appear to be eager to test out what efficacies can be extracted out of this new technology in the most disruptive and fastest way possible. It is evident that there is more room for development in the world of remittances with the help of the distributed ledger technology.
The Prevailing Remittance Options Consumes a Lot of Time
Nowadays, anyone who banks along with major institutions understands what is involved with remitting money internationally. Firstly, it takes a lot of time. If a person transfers fund among SWIFT affiliated banks, some organizations can take up to five working days or more. In the case of needing a fast solution to take the place of this, blockchain tech is a practical one. Cryptocurrencies that are already effective on blockchain can transfer funds through a state of security in just a few minutes.
Costly Remitting of Funds Cross-Border
The second issue with cross-border remittance is that the rate can be obstructive. On the other hand, blockchain remittances are much affordable and more secure for both end users and financial bodies. That’s because of the easy yet extraordinary networking technology that cuts out fees and time. For those people within developed countries who send cash to their families abroad, the costs with conventional banks can reach up to hundreds of dollars. That’s often being charged both to receive and send funds.
On the other hand, for those in developing nations, the necessity for low-cost remittances is much higher. In countries like the Philippines and Nigeria, remittances create a large fraction of their GDP, at least 4% to 10% correspondingly. Each dollar spent on such fees connected with sending the money is better utilized elsewhere.
Accelerating Choices to those Who Need Them
Ultimately, the access to conventional banking solutions within those developing countries can be a massive concern for those individuals to surpass in their efforts to transfer money. Even when banks systems are accessible, not everybody has access to them. Furthermore, having an extensively spread solution based on blockchain tech takes the virtually exclusive power that huge banks have over the cross-border remittances. That offers more opportunities to individuals who need them.
A good example of blockchain technology is XinFin. XinFin’ hybrid technology could be applied to the real-world enterprise circumstances to achieve massive efficacies and value in every business areas. For instance, every type of conventional trade and finance contracts can be performed through XDC blockchain based smart contracts. Trade finance, traditional lending, and other scenarios can be automated and re-engineered through digital smart contracts, which underlies XDC tokens.
No doubt, blockchain technology offers people the power to alter and enhance on efficacies in most tried and true sectors which we just take for granted. If we include in forefront sector expertise along with blockchain, great new innovations are possible. That will help people around the globe with not just transforming new abilities and features, but with more transparency and reliability in the process.