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Cryptocurrencies are facing “obstacles” to remittances as salary usage increases

From Bitcoin to Ethereum, interest in cryptocurrencies has skyrocketed in recent years, pushing prices to spectacularly highs with a sharp drop. While mainstream adoption is growing among consumers and institutions, the cryptocurrency situation remains uncertain. Is it a medium of exchange to replace or sit side by side with fiat currencies? A store worth the money? Or something else entirely?

Two reports released this week highlight both the increasing adoption of cryptocurrencies and the challenges that digital currencies still face. research According to Paysafe, a London-based payment provider, 55% of cryptocurrency owners rather want to be paid in cryptocurrencies.

This figure rises to 60% between the ages of 18 and 24, suggesting that more employers may start offering options as the younger generation continues to enter the workforce.

A few companies working in the field of cryptocurrencies, such as Blockchain.com, Bitshares, Fairlay, Purse.io, SC5 and Bitwage, have already paid their employees cryptocurrencies.

The Paysafe report states that the main reason given by crypto owners to receive payments in cryptocurrencies is that they see it as a smart investment with greater financial flexibility.

More than 54% of the crypto owners surveyed agree that cryptocurrencies are the future of finance and will continue to be the main form of international currency.

Ask questions about cryptocurrency remittances

Cryptocurrency volatility has consistently been a hurdle to replacing fiat currencies as follows:About 70% of crypto owners say they have doubts about their investment.

However, another study raises questions about the cryptocurrency use case that has long been promoted by its proponents: overseas remittances.

Traditional banks often charge high fees to send money to friends and family around the world.Cryptocurrencies can avoid traditional banking fees According to the World Bank An average fee of 5% to 9.3% can be charged for a $ 200 transfer.

According to a study released by international payment data provider FXC Intelligence, the use of cryptocurrencies in remittances faces a “serious obstacle”. According to the company, cryptocurrencies are banned or severely restricted in more than half of the world’s 10 largest remittance destinations.

The findings cast doubt on the effectiveness of schemes such as Facebook’s Novi to replace traditional banks and remittances for remittances.

Cryptocurrencies are fully adopted in some countries, and El Salvador accepted Bitcoin as fiat currency last year. Some companies, such as Russia, China and India, have issued total bans or restrictions on cryptocurrencies. Countries with crypto-friendly remittance restrictions include the United States, United Arab Emirates, and Germany.

All this goes against the growing mainstream interest in cryptocurrencies. Large companies such as Tesla, Square and PayPal, along with institutional investors, are becoming more and more active in this area. As of June 28, 2021, 34 public companies have a total of over 213,000 Bitcoins, according to data from CryptoTreasuries.

Daniel Webber, CEO of FXC Intelligence, said:

“But in reality, this is not always the case. According to the latest research, the entire market remains severely restricted unless major host countries make significant regulatory changes. Crypto is undoubtedly overall. It could be part of a remittance mix, but don’t expect it to be the only approach to global payments. “



Cryptocurrencies are facing “obstacles” to remittances as salary usage increases

Source link Cryptocurrencies are facing “obstacles” to remittances as salary usage increases

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