> As for crypto, I recommend people read about Bitcoin being used for the purposes of sending remittances to start.
I followed your recommendation and this is what I found: bitcoin might, in theory, work for the purpose of sending remittances, but in practice it doesn't.
So, returning to the original question, can cryptocurrencies offer an innovative solution for migrant remittances to developing countries? Yes and no. In theory, cryptocurrencies can really provide an effective and economical channel for money transfers to help alleviate poverty through remittances. However, there are two principle problems. Firstly, coins such as Bitcoin remain too volatile, in fact ten times more volatile than major currencies (Baur & Dimpfl 2021). This means that if migrants were to use such channel they would be exposing themselves to extreme risks. But, more importantly users of bitcoin may find themselves victims of speculative attacks, as the cryptocurrencies’ value remains completely speculatively constructed. Secondly, as with international bank transfers, cryptocurrencies need a bank account to buy and sell it. As explained above, having a bank account is not a given and represents a high barrier to entry for many of the poorest migrants.
Go learn what Strike just achieved in El Salvador for example. It works in practice and in theory. A big issue is people barely understand Bitcoin and then they try to crtitize it and always seem to fail spectacularly
I followed your recommendation and this is what I found: bitcoin might, in theory, work for the purpose of sending remittances, but in practice it doesn't.
So, returning to the original question, can cryptocurrencies offer an innovative solution for migrant remittances to developing countries? Yes and no. In theory, cryptocurrencies can really provide an effective and economical channel for money transfers to help alleviate poverty through remittances. However, there are two principle problems. Firstly, coins such as Bitcoin remain too volatile, in fact ten times more volatile than major currencies (Baur & Dimpfl 2021). This means that if migrants were to use such channel they would be exposing themselves to extreme risks. But, more importantly users of bitcoin may find themselves victims of speculative attacks, as the cryptocurrencies’ value remains completely speculatively constructed. Secondly, as with international bank transfers, cryptocurrencies need a bank account to buy and sell it. As explained above, having a bank account is not a given and represents a high barrier to entry for many of the poorest migrants.
https://blogs.lse.ac.uk/humanrights/2021/04/29/cryptocurrenc...