International Day of Family Remittances: How technology is revolutionizing sending money
The flow of remittances has constantly changed in Argentina, and this is related to the economic variations it faces.
At present, the country has become a money-receiving country. According to the Migration and Remittances report from the Department of BBVA Research, it is noteworthy that between 2020 and 2022 the country has been among the three economies that have increased their income from remittances the most. In 2020 remittances to Argentina increased 19.4%, in 2021 they increased by 47.3% and in 2022 they had an increase of 38.9%.
Most people send their remittances through companies or platforms that use the SWIFT network to send bank money from one country to another. These types of transfers are used in almost all banks in the world, but they have some disadvantages: high costs per transaction, it requires intermediaries, and a long time elapses between the time one person sends money and another receives it.
Given this, technology plays an important role in improving money transfer processes and democratizing financial opportunities. Currently, it is possible to enable the option of making international transfers automatically and economically, in which both the sending user and the beneficiary always view and operate in local currency. All this thanks to the blockchain and the tokenization of assets.
Within the framework of the International Day of Family Remittances, Leo Elduayen, the CEO of Koibanx, a pioneer company in providing blockchain infrastructure for the Latin American financial system , commented:
“ There are already B2B solutions –that is, we offer for other companies-, such as Cross Border Settlemen t, in which from Koibanx, for example, we enable instant transfers in more than 8 LatAm countries by obtaining USD locally in the USA through ACH or transfers, debit and credit cards or cryptocurrencies, settling that money at the final destination in the local currency. ”
This B2B solution running on blockchain rails makes sending money internationally much faster and cheaper than commonly used methods. As proof of this, there are different success stories such as Gig-economies platforms that provide shipments abroad for their partners and users; payment wallets that provide their users with shipments abroad and even banks and financial institutions seeking to facilitate international payments (other than COMEX) to their customers.
Juniper Research’s Blockchain in Financial Services report shows confidence that blockchain adoption will continue to grow over the next decade to reach a total of 2 billion cross-border transactions via Blockchain by 2030.
“Despite the current economic situation, the fact that the flow of remittances has increased in recent years is an encouraging indicator, even more so for those of us who believe in blockchain technology and the principles on which bitcoin was created. Because remittances positively promote economic development since they not only improve the condition of those who receive them, but also stimulate local consumption and can help reduce poverty in Argentina. And in this flow, cryptocurrencies, more than ever, can play a crucial role”, comments Ramiro Raposo, VP of Growth at Bitwage -pioneering platform for payment of fees in cryptocurrencies and digital dollars most chosen by workers, freelancers and exporters of services-.
Currently there are already companies like Koibanx that accounts for 1 trillion dollars in tokenized assets on the blockchain and has 9 banks that have on-chain products, that is, on public and transparent blockchains. “ By sending certain cryptocurrencies, stablecoins or any tokenized asset through this B2B technology, the possibility of transacting without borders in the most secure way possible. Like everything, it is cultural, the user is becoming more and more friends with technology and we are on the way towards a decentralized operation , “said Elduayen.
Technology has the power to transform the way people send money globally. By reducing the costs and intermediaries involved, money transfer processes can be streamlined, providing significant benefits to senders and receivers, contributing to the goal of democratizing access to financial services. With the adoption of these solutions by companies and institutions in the financial sector, a more inclusive and efficient future is expected for sending remittances, raising financial opportunities worldwide.