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Its irrelevant how much it will cost in the end. Moving fiat inside the same currency space is rather trivial, its just balances on a server in the end. Moving

by noxer 4y ago

Its irrelevant how much it will cost in the end. Moving fiat inside the same currency space is rather trivial, its just balances on a server in the end. Moving currencies across borders between different jurisdictions and currencies that is actually where the problems start and thus this is not cheap and not fast. People already use crypto as a bridge currency today to transfer "functioning currency" aka fiat. If you are in lets say Europa and you want to send money to Mexico You buy crypto send it there and sell it there for the local currency (Mexican Peso). This takes only a few minutes if done manually and you get the exchange rate of the market not some bad rate from a bank or payment provider. People do this since many years now circumventing banks and payment providers who would take a huge fee.

jqpabc123 4y ago
People do this since many years now circumventing banks and payment providers who would take a huge fee. Take an individual case and add up all the end to end fees associated with doing this. Most likely, they are still huge. A lot of these people aren't really saving much money compared to traditional banking. They're doing this for convenience because they can't easily get a bank account or don't want one because they operate outside the system.
- noxer 4y ago
  You can exchange USD to crypto with a spread of 0.1% (which statistically will be in your favor at least sometimes). Transfer is dirt cheap if you dont use the known high fee blockchains like BTC/ETH. A realistic fee is less then 1 cent per Tx. Then crypt back to fiat same thing 0.1% spread. Lets assume a worst case and you loose 0.5% for the 2 exchanges and 1 cent for the fee. So for 100 USD send that would mean 99.49 USD is revived For comparison moneygram's cheapest option for 100 USD to MXN would cost $2 fee (debit card fees not included and the exchange rate (spread) is unknown they give you whatever they want but certainly not anything better than 0.1%) So $102 send and less than $100 will be received and it takes up to 2 business days while the crypto solution takes minutes. Worst case example is still 4+ times cheaper while completely ignoring the exchange rate because you cant know in advance. And there are way more exotic currencies than MXN which makes the exchange more expensive. Not for crypto tho. If there is a market you get the real market exchange rate as is. The global remittance market moves billions with double digit growth yearly. If just a tiny fraction of all people use crypto for this (and they do) their saving sum up to millions.

by noxer 4y ago

jqpabc123 4y ago

People do this since many years now circumventing banks and payment providers who would take a huge fee. Take an individual case and add up all the end to end fees associated with doing this. Most likely, they are still huge. A lot of these people aren't really saving much money compared to traditional banking. They're doing this for convenience because they can't easily get a bank account or don't want one because they operate outside the system.

noxer 4y ago
You can exchange USD to crypto with a spread of 0.1% (which statistically will be in your favor at least sometimes). Transfer is dirt cheap if you dont use the known high fee blockchains like BTC/ETH. A realistic fee is less then 1 cent per Tx. Then crypt back to fiat same thing 0.1% spread. Lets assume a worst case and you loose 0.5% for the 2 exchanges and 1 cent for the fee. So for 100 USD send that would mean 99.49 USD is revived For comparison moneygram's cheapest option for 100 USD to MXN would cost $2 fee (debit card fees not included and the exchange rate (spread) is unknown they give you whatever they want but certainly not anything better than 0.1%) So $102 send and less than $100 will be received and it takes up to 2 business days while the crypto solution takes minutes. Worst case example is still 4+ times cheaper while completely ignoring the exchange rate because you cant know in advance. And there are way more exotic currencies than MXN which makes the exchange more expensive. Not for crypto tho. If there is a market you get the real market exchange rate as is. The global remittance market moves billions with double digit growth yearly. If just a tiny fraction of all people use crypto for this (and they do) their saving sum up to millions.