A few players in the cross-border cash transfer industry see the blockchain and cryptocurrencies as innovations that can improve settlement processes.
Cryptocurrency can be a decent option in contrast to customary repayment processes since they are supported by blockchain innovation which enables instant finalisation of transactions without the involvement of intermediaries, stated a report published by International Association of Money Transfer Networks (IAMTN).
The mix of declining correspondent banking connections and the rising volume of cross-border exchanges further highlights the significance of the blockchain for bringing down the expense of dispatching assets as well as making the exchange of cash across borders much faster.
“Cross-border transactions can be settled quickly, hence deterring the requirement for pre-funding accounts in receiving countries, which is a costly practice for remittance providers. Various organisations, going from conventional remittance service providers to cryptocurrency fintechs are utilising blockchain innovation to further develop remittance processes,” explains the report.
To support this declaration, the report incorporates the discoveries of a study by IAMTN which looked for industry players’ perspectives on innovations which can work on the process of sending funds across borders.
Remittance services providers are excited to integrate new technologies into their operations which often are subject to challenges in the form of rigid national regulations or the absence of any laws that govern such technologies.
According to IAMTN, it’s surprising that only a few countries regulate the use of blockchain which enables “some level of uncertainty for businesses that use, or would like to use, this technology.”
The report noted few barriers such as accessibility, lack of awareness, literacy and trust often work against or make new technologies unattractive even when their use results in significant savings. The IAMTN pleads with policymakers to rework their law to these realities to overcome some of these challenges.
Subscribe to The Crypto Times, for more Market news.
