Cryptocurrency remittances hit by increased use for salaries. Interest in cryptocurrencies, ranging from Bitcoin to Etheruem, has skyrocketed in recent years. Driving prices to dizzying heights — as well as precipitous drops – in the process. While cryptocurrency popularity among individuals and organizations is increasing. The future of the digital currency remains in doubt. Is it a medium of exchange that can either replace or coexist with fiat currencies? Is there a store of value that can compete with gold? Or is it something quite different?
Earlier this week, two publications were published that highlighted. Both the increasing acceptance of cryptocurrencies and the issues. That digital currencies continue to face today. According to a study conducted by Paysafe, a London-based payment provider. 55 percent of cryptocurrency owners would prefer to get their paycheck in cryptocurrency rather than cash.
According to the survey, the proportion jumps to 60 percent among 18-24-year-olds. Indicating that as younger generations continue to enter the workforce. More firms may choose to provide the choice.
Blockchain.com, Bitshares, Fairlay, Purse.io, SC5 and Bitwage. Are just a few of the companies in the cryptocurrency field that are already paying their staff. With cryptocurrencies.
According to the Paysafe survey, the most common reason stated by cryptocurrency owners. For accepting payment in cryptocurrencies is that they consider it. To be a wise investment that provides them with greater financial flexibility and freedom.
Over 54 percent of bitcoin owners who responded to a study believe. That cryptocurrency is the future of finance and would eventually replace fiat money. As the dominant form of international currency.
Doubt Cast on Cryptocurrency Remittances
The volatility of cryptocurrencies has continually shown to be a barrier to its adoption. As a substitute for fiat currency, with over 70% of bitcoin owners. Stating that they have had reservations about investing.
Separate research, on the other hand, has raised concerns about a cryptocurrency use case. That has long been extolled by the coin’s proponents: international transfers.
Traditional banks frequently demand exorbitant fees. For sending money to friends and family members in other parts of the world. According to the World Bank, using cryptocurrencies can help you avoid typical banking fees. Which can range from 5 percent to 9.3 percent for a $200 transaction on average. Depending on where you live.
In a study produced by international payments data company FXC Intelligence. It was discovered that the adoption of cryptocurrencies in remittances is hampered by “substantial barriers.” According to the business, more than half of the world’s ten largest remittance. Receiving countries have banned or placed severe limitations on the use of digital currencies.
Those statistics raise questions about the usefulness of programs. Such as Facebook’s Novi in substituting traditional banking and money transfers. For remittances, according to the study’s authors.
Some countries, such as El Salvador, have fully embraced cryptocurrencies. With Bitcoin being accepted as legal cash there last year. Several other countries have imposed outright bans or restrictions on cryptocurrencies. Among them Russia, China, and India, among others. The United States, the United Arab Emirates, and Germany are also among the countries. That have cryptocurrency-friendly remittance legislation.
This is despite rising public interest in cryptocurrency
In the midst of this, mainstream interest in cryptocurrencies is growing. With large corporations such as Tesla, Square and PayPal joining forces with institutional investors. To become more engaged in the area. On June 28, 2021, according to CryptoTreasuries data. 34 public firms also held a total of over 213,000 bitcoins in their respective bank accounts.
Cryptocurrency has quickly emerged as one of the most widely used buzzwords. In cross-border payments, with proponents arguing that it can improve speed. And cut costs when compared to traditional cryptocurrency remittances alternative. This is according to Daniel Webber, CEO of FXC Intelligence.
This is not usually the case in practice, and our most recent research. Indicates that the entire market will continue to be severely restricted. Unless important receiving nations implement significant legislative changes.” Cryptocurrency has the potential to be a significant part of the overall money transfer mix. But don’t expect it to replace traditional methods of international payments. In the near future.”