Blockchain technology gained popularity in different parts of the world. Although blockchain made headlines, it may be unfamiliar to those in developing countries. Such individuals fail to recognize how blockchain can apply to their lives and solve vital problems.
Over the last decade, migration has increased greatly. U.N statistics show that there are 258 million migrants in the world. Several factors have resulted in migration including political instability, natural disasters, search for a better life and work.
Developing regions including Africa and Asia have reported increased migration especially because of labor. Residents migrate to earn money for their families away from their homeland.
Families in developing countries depend almost entirely on remittance transfers received from relatives working abroad. Remittance payments involve complex processes and conversions thus, transfers may take several days.
Banks charge commission fees as much as 7.13 percent of the amount sent and could be higher in different countries. Cash transferred using this method may not reach the recipient and this has made people search for new ways of money transfers.
Decentralized Remittance Payments
Blockchain powered digital transactions is a safe way to make remittance payments easier. Cryptocurrency payments require no third parties and are processed easily and quickly.
A distributed ledger network remains difficult to compromise and is not subject to fraud and hacking. This makes it superior to centralized banks that can easily be hacked.
Some firms have started implementing blockchain remittance systems to perform instant virtual payments and money transfers. Bitpesa allows Nigerians, Kenyans and Tanzanians to send money instantly.
Blockchain technology opens new opportunities to facilitate fast, easy and reliable payments. It provides real value to individuals worldwide and is a suitable alternative for the traditional payment method.