More than 200 million people currently live abroad. The main reason why they need to make money transfers is to sustain their family’ life back home. This is called remittances. Western Union is one out of 10’000 money transfer actors existing on the market, but Western Union is the oldest. The company recently announced to be working on blockchain technology in order to improve the efficiency of international transfers. Knowing that such a dinosaur is interested in this technology probably means that there is something interesting here.
1/ how to use blockchain to transfer money overseas
The tricky part about money transfer operators is that it’s not easy to find them. Moreover they usually don’t communicate about the technology they use. You can always find the best money transfer solutions on a money transfer comparison and you will have to take a look in details to know which technology they use.
Let’s give you a few clues so that you find that kind of actors : theblockchainnetwork and Align Commerce are two good actors. Abra is also very promising.
2/ what makes the blockchain technology so promising for international money transfers?
It’s still difficult to transfer money overseas. Indeed there are many actors and even our banks have very complex systems. Is the blockchain technology going to help in easiness? The answer is no. Blockchain is a new technology and the regulators need to take a look closely at it. Even though it’s a secure technology the regulators want to control it a lot. At the end it becomes more difficult to create an account at a money transfer operator using blockchain than at a solution sending money with another technology. What is promising then? The cost of money transfers. Remitting money overseas is going to be much more cost-effective in the future.
It’s not easy to find online money transfer operators but they are very promising for the future. Let’s keep watching the operators to not miss an opportunity.