ABOUT CRYPTO PROCESSING 

Massive Amounts of Money Trade Hands via Remittances

An often hidden part of the world economy revolves around the massive amount of funds that trade hands via remittances every year. The World Bank reported in 2019 that the rough estimate of the total amount of funds in dollars that were sent via remittances to low and middle income countries touched about $550 billion that year alone. We know that the number came down a little in 2020 given the COVID-19 pandemic, but it is still clear that billions of dollars move through this system every couple of days.

High exchange fees are a frustrating aspect of remittances that most would like to do away with. Estimates show that the average transaction cost of remittance of just $200 is about $14 or roughly 7% of that transaction. This means that an incredibly large sum of money simply falls down the rabbit hole into the pockets of third-party transaction services.

The solution to this issue may reside with Bitcoin and other cryptocurrencies. These currencies can be exchanged from one crypto wallet to another with minimal transaction costs or friction. Parties can receive their funds much faster and with far fewer fees. The only roadblock to this more desirable future is hesitation by the public and by some governments to accept cryptocurrencies as a functional part of the economic fabric of this planet.

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Merchant Services and the Acceptance of Crypto Technology

It has been a long journey for Bitcoin and its counterparts to start to gain traction with the public as an accepted form of currency. It still makes up just a small portion of the total transactions conducted throughout the world daily, but it has picked up some valuable allies as it continues the fight to gain acceptance. Brands such as PayPal and Xbox have stated that they will accept Bitcoin payments. Business Insider event reports that popular fast-food chains in certain parts of the world are getting on board as well: Restaurant Brands International is one of the world’s largest fast-food holding companies. It is the parent company of Burger King, Tim Hortons, and Popeyes.

Last year, Burger King Venezuela announced it would begin accepting bitcoin and other cryptocurrencies. It collaborated with Cryptobuyer, a platform that generates conversion of cryptocurrencies to normal currency

What this means is that even large merchants such as these household names see the legitimacy of Bitcoin and want to get in on the potential to add additional customers to their base. They believe that acceptance of Bitcoin is the way to do just that. Lower transaction fees make it worth their while, but the volatility of the price of Bitcoin is certainly a risk that everyone must consider. Additionally, the looming danger of excessive government regulation is another factor to keep in mind when considering why more merchants haven’t begun to accept the currency.

All of this said, the future looks incredibly bright for Bitcoin and others particularly for individual users of these currencies. Circumventing some of the most frustrating and immovable aspects of the global economy is one of the biggest accomplishments that these currencies can already put under their belt. Look for more milestones as time goes on.