Remittances & Cross-Border Payments
How cryptocurrency enables faster and cheaper international money transfers
The Problem with Traditional Remittances
Sending money across borders has historically been slow, expensive, and complicated. When a worker in the US sends money to family in the Philippines, multiple banks and intermediaries take their cut.
Traditional wire transfers can cost 5-10% in fees and take 3-5 business days. For someone sending $200 home each month, that's $10-20 lost to fees—money that could feed a family for days.
Think of it like shipping a package
How Crypto Remittances Work
Several services now specialize in this use case. The sender doesn't need to understand crypto—they just see a simple app where they enter how much to send and to whom.
Behind the scenes, the service handles the conversion. Some use stablecoins to avoid price volatility during the transfer. The recipient can often cash out at local agents or directly to a bank account.
Real-World Adoption
The US-Mexico corridor sees over $50 billion in remittances annually. Crypto-based services have captured a growing share by offering fees under 1% and near-instant delivery.
El Salvador's adoption of Bitcoin as legal tender was partly motivated by remittances—Salvadorans abroad send home $6+ billion yearly. The government hoped crypto would reduce the fees eating into these transfers.
The Philippines, one of the largest remittance destinations globally, has seen rapid growth in crypto-based transfer apps that partner with local cash-out networks.
Why This Matters for Global Inclusion
- Remittances exceed $700 billion annually—fees drain billions from developing economies
- Faster transfers mean families can respond to emergencies in hours, not days
- Lower fees mean more money reaches the people who need it most
- No bank account required on either end with some services
Current Limitations
- •Crypto volatility can affect value during transfer (mitigated by stablecoins)
- •Recipient must have access to cash-out options in their location
- •Regulatory uncertainty in some countries limits availability
- •User education needed—unfamiliar interfaces can lead to mistakes
Comparing the Options
| Method | Typical Fee | Speed |
|---|---|---|
| Bank Wire | $25-50 flat | 3-5 days |
| Traditional Services | 5-10% | Minutes to days |
| Crypto Remittance | 0.5-2% | Minutes |
Key Takeaways
- Crypto remittances cut fees from 5-10% down to under 2%
- Transfers complete in minutes instead of days
- Stablecoins help avoid volatility during the transfer process
- Growing adoption in major remittance corridors worldwide
- User-friendly apps hide the crypto complexity from senders and recipients