Although working abroad comes with benefits such as earning higher salaries and living better lives, most of these workers face various challenges when sending money to their relatives in their home countries. The Overseas Filipino Workers (OFW) are not different either and have to pay high transfer fees when sending money. The use of Cryptocurrency and blockchain technology is going to make cheaper and more convenient to send money abroad.
The Use Of Cryptocurrencies To Send Money Overseas
The Overseas Filipino Workers (OFW) will benefit from the use of Cryptocurrencies. The workers could use the virtual currencies to send money to their loved ones in the home country. Nestor Espenilla Jr., the Philippines Central Bank Governor said that in January, the workers remitted $2.379 billion through banks. This shows that international money transfer is a big business in the country.
Nevertheless, the OFW have to overcome various challenge when sending money through the various money transfer options available. For instance, sending up to $500 USD through the Western Union attracts a charge of $1.25 USD while amounts up to $1,000 USD cost $1.65 USD. Moreover, these fees are not fixed and a sender may be forced to pay an extra amount when the exchange rates are not favorable. Cryptocurrencies can replace these money transfer options and allow QFW to enjoy various benefits.
Apart from the high cost, the QFW also have to wait for some time before the money is received back home. Some transactions take several days while others take even weeks making the existing transfer method inconvenient. In case of an emergency, the recipients have to cope with the situation for some days until the transactions are successfully processed.
Why Turn To Cryptocurrencies?
Blockchain technology and Cryptocurrencies are expected to revolutionize various industries, finance sector included. QFW and their families stand to enjoy numerous benefits with the introduction of the virtual currencies in the money transfer sector. Sending money abroad will become less stressful than it is today.
Whereas the existing money transfer options charge hefty fees to send money, the use of digital assets will reduce these costs drastically. Transactions using Cryptocurrencies are paperless making it less expensive to transact with them. QFW can save on these costs and spend the money in other projects.
The current money transfer options are time-consuming. The transfer of money involves various stages that must all be passed through before the funds are made available to the recipient. Cryptocurrencies enable people to send and receive money instantly. This will be of great convenience to both the senders and the recipients.
What’s Next For Philippines
Currently, not many businesses in the Philippines are accepting Cryptocurrencies. However, the number of those supporting Crypto payments is growing every day. As more businesses realize the benefits that come with the virtual currencies, life is going to become easier for the country’s Crypto community.
Various established Crypto firms have taken the challenge of encouraging the use of altcoins in the country. PundiX, for instance, has introduced NPXS, Bitcoin, and Ethereum virtual currencies in an attempt to boost Cryptocurrency adoption. It is only a matter of time before other firms join the Indonesian company in this campaign.