Crypto could save Americans billions of dollars in costs related to remittance payments to places like Asia and Latin America, data compiled by Coinbase shows.
According to a blog post published by Coinbase this week, Americans spend more than $12 billion a year on fees alone related to remittances. The remittance payments were described as a “vital lifeline for underbanked communities,” but could have been done both faster and much cheaper if crypto was used, Coinbase said.
Judging from Coinbase’s data, remittances made with crypto are as much as 96% cheaper than those made with traditional methods, while also being “significantly faster.”
The surprising finding was shared on Twitter by Coinbase’s chief legal officer Paul Grewal, who as a comparison pointed out the miniscule cost of sending bitcoin (BTC) or ethereum (ETH) across borders:
In 2022, Americans sent about $67 billion to Asia and $52 billion to Mexico, the blog post further said, while noting that Americans were responsible for as much as 95% of the remittances going to Mexico.
“1 in 5 American adults own crypto, and in states like Ohio, Pennsylvania, and Nevada, more than 40% of voters who own crypto said they do so specifically because it lets them send money across national borders,” Coinbase’s blog post said.
The blog post concluded by calling for regulators to acknowledge the positive impact crypto can make for those relying on remittances, while calling the current system “antiquated”:
“We want to support hard working Americans wanting to support their families and friends abroad. To do so, we need our American regulators to see the true value of responsible crypto products and services and their ability to update an antiquated system.”
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