Key Takeaways
- Crypto assets such as Bitcoin and stablecoin (USDC, USDT) are used for remittances, offering users a better alternative for cross-border payments.
- Through reliable, trusted crypto platforms, users can receive digital assets, convert them into local currency, and spend them on their daily needs.
- Using Bitcoin or a stablecoin provides easy entry for users, companies, and businesses looking for faster payment solutions.
Sending money across the world is never cheap, especially with a traditional finance system where you are expected to pay 5-10% remittance charges, and these funds face delays due to bank closures, public holidays, or may take 2-5 working days to arrive, making the process extremely slow.
These delays and others have led many companies and businesses to call for a better, faster remittance system that is more transparent and accessible to everyone around the world. The creation of Bitcoin and Stablecoins was welcomed by many as these digital assets closed the gap in cross-border payment that many traditional banks had failed to address for years.
With the help of the Bitcoin Lightning Network and Ethereum technology, all on the blockchain ledger, users can easily pick up their phones and make large transfers across the world within a few seconds, highlighting its fast, low-cost nature for all users.
This article discusses Bitcoin vs. stablecoin remittances and which is gaining more recognition.
Bitcoin vs Stablecoin Remittances – How Does It Work?
Bitcoin and Stablecoin remittances are funds sent by foreign workers to support their families and pay bills worldwide. This money can be received in Bitcoin or stablecoins and converted to local currencies via cryptocurrency exchanges, then deposited into users’ bank accounts, allowing them to access these funds.
With the help of the Bitcoin Lightning Network, users can engage in cross-border payments, resulting in faster transactions between 3-5 minutes at a cost of above $5; however, stablecoin remittances offer better flexibility to companies and businesses, as funds are transferred in seconds, as low as $1 per transaction. Transactions are ultra-fast and work 24/7, allowing smartphone users to access funds in their bank accounts.
Why Use Bitcoin or Stablecoins for Remittances
The use of Bitcoin and stablecoins for remittances helps to eliminate the problems regarding cross-border payment that have plagued many traditional institutions and banks, as this mode of payment helps users to achieve the following:
- Low cost of transaction
- Near instant delivery of remittances using Bitcoin and Stablecoins
- Wide reach and accessibility with just a few clicks
- Secure and transparent on the blockchain ledger
How Bitcoin or Stablecoin Remittance Happens
Making remittances using stablecoins or bitcoin involves converting local currency from your bank account to your crypto account via peer-to-peer (P2P) transactions, which allow users to deposit stablecoins or bitcoin into their crypto wallets. Upon successful deposit, ask the receiver to send a crypto address, and the funds will be transferred. The receiver can cash out via P2P or direct deposit into a bank account.
Conclusion
The use of cryptocurrency exchange Apps on both iOS and Android provides an easy way for businesses and freelancers in Nigeria to cash out their digital currencies into local Nigerian Naira, allowing them to spend on everyday needs while being assured of security, fast payments, and ease of use.
FAQs
Are stablecoins better than Bitcoin?
Stablecoins are much affordable and faster when it comes to remittances, but both offer users a better alternative for cross-border payments compared to traditional banks.
Can you use crypto for remittance?
Crypto assets are used for payment settlement as they offer faster, cheaper, secure, and transparent transactions on the blockchain for all users.
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