Coinbase says Crypto could save Americans billions of dollars a year in remittance fees
Top US crypto exchange Coinbase believes Americans can save billions of dollars a year in money transfers by using digital assets.
Coinbase notes in a new blog post that banks charge Americans an average transfer fee of 10.8%, money transfer operators charge an average of 6.2% and post offices charge 5.5%.
“Americans spend over $12 billion a year in fees just to send money to friends and family abroad. These remittances are a vital lifeline for underbanked communities, enabling those who need it most to buy essential household goods, invest in health services and finance education.
Yet the process for international transfers is shockingly slow and expensive. Crypto international money transfers are significantly faster and over 96% cheaper, significantly easing the burden on communities looking to provide support to families and friends abroad.
Coinbase claims that crypto can dramatically reduce the amount of money spent by Americans on money transfer fees per year.
“Cryptocurrencies like Bitcoin or Ethereum can reduce the cost of sending money internationally by about 96.7% compared to the current system. Sending Bitcoin to another wallet costs an average of $1.50 per transaction, and Ethereum costs an average of $0.75 per transaction These numbers speak for themselves The fee burden can be removed.
It’s not just the dollar cost. The time cost is equally huge and inconvenient with the average transfer taking 1 to 10 days. Cryptocurrencies are also faster; the average waiting time for crypto transfers is 10 minutes.”
Coinbase also notes that Americans sent $67 billion in cross-border payments to Asia and $52 billion to Mexico last year. Americans actually handled nearly 95% of the remittances sent to Mexico last year, according to the exchange.
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