Blockchain technology is known to be an industries’ disruptor and one major industry it is currently disrupting is the Financial one. It has particularly proven that remittance can be revolutionized and done totally differently to the benefit of the customer as opposed to what currently pertains with banks charging exorbitant fees for what can be done at a far lower cost.
On the 16th of October, a Bitcoin holder transferred 29,999 BTC which is worth $194 million in fiat terms to another wallet for a meagre fee of $0.1. This transaction would have attracted tens of thousands of dollars had it been done by a bank.
This and many other transactions on the Blockchain are common and even getting cheaper as the technology continually gets worked on and improved. Blockchain has demonstrated several times over that there is a huge potential for consensus currencies to optimize cross-border payments and significantly reduce transactional costs.
Even with fiduciary currency-based non-bank financial institutions that engage in money transfer businesses, the cost of transactions is significantly higher than transfers carried out on the Blockchain. For instance, TransferWise, a multi-billion-dollar company based in the UK will charge your around $7,500 to transfer a million dollars. The interesting aspect is that institutions like TransferWise are seen by the mainstream market as a cheaper option when compared to traditional banks – meanwhile there is already a far cheaper option for the market to use, its just a matter of time before the magic of Blockchain remittance is widely discovered.