In a recent blogpost, Binance stated that for India to become a global blockchain powerhouse, building and fostering an active community in the country was necessary.
According to reports, India’s remittance was expected to account for $80 billion in 2018.
The report said that low and middle-income countries like India were expected to soar by 4% and touch $549 billion in 2019, while remittances were expected to grow by 3.7% to $715 billion in the same year globally.
These figures are very significant for a developing country like India. When making cross-border money transfers using traditional financial institutions, a significant amount of cash eventually ends up as transaction costs, the Binance post said. In order to curb the flow of money as remittance fees and the unnecessary cost of the entire process, blockchain and cryptocurrency should be used to facilitate transactions without the need of a middleman, the report said.
Additionally, one of India’s national dailies, The Times of India, reported that a massive chunk of $2.3 billion was lost in remittance fess in 2017. Remittance is undeniably a costly affair in India, with the third-party taking away a considerable amount of the fund.
The blog stated,
“Blockchain and cryptocurrencies for cross-border remittances can save the world billions of dollars every year. With blockchain, you can transfer digital tokens to anyone in the world, paying only for the network power or technology used to send those tokens, which costs way lower than the current prevailing fees in the traditional services.”
Citing an example, the exchange’s blog explained that in November 2018, 109,735 Bitcoins, valued at around $600 million during the time, was transferred from one address to another. The entire transfer cost only $7, as opposed to a transaction fee of approximately $32 million in the case of a traditional remittance, the post said.
In a bid to bolster the nascent blockchain and crypto-ecosystem in the country, Binance recently announced a meetup to showcase the technology’s developments.
The CEO of Binance, CZ, had previously stated that India had the potential to be a major development center for blockchain technologies and a financial hub for the world in the near future, by leveraging the country’s tech talent pool.
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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.