Bitcoin isn’t ready for prime time as a world wide remittance replacement.

Being free mechanism is the one of the most important and value advantage of Bitcoin as a payment device. This reason is important for international remittance which is the potential key for using the Bitcoin.
Being free mechanism is the one of the most important and value advantage of Bitcoin as a payment device. This reason is important for international remittance which is the potential key for using the Bitcoin.

In accordance with the research of the World Bank, the annual average cost of remittance in the world reaches approximately 8.85% of $514 billion sent. If this price is close to the zero, such fact will mean that immigrants will save their money sending them to home and such situation will have an opportunity to identify the Bitcoin startups.

Bitcoin mostly operate with foreign companies because it is much cheaper and faster. Due to the fact that most remittance starts it developing in the USA, Europe or other developed countrie, it is not difficult to initiate a Bitcoin remittance. However, due to some initial difficulties(disputes) with creating a new account with an exchange, it is much easier to purchase bitcoins on U.S. dollars or Euro or Yen. Such friction is mainly for Know Your Customer (KYC) and other anti money laundering operations. Since the moment when remittance is made on a respective basis, that friction should not be the main obstacle for its acceptance.

The difficult problem appears in the moment of turning the Bitcoins back to the money. Such countries as China, Mexico and India ate the greatest naions-receiver for remittance flows. Two of them, Mexico and India, surprisingly have no activities in their local bitcoin ecosystems. According to Bitcoinchart.com, there is a list of no market volume data for such marketplaces as BTC:MXN and BTC:INR. But because of no demand for Bitcoin in peros or rupees, there is no any chance for native holders to change it on their currency within the country. It makes any type of scale remittance business impossible.

The story of China is quite different from other countries. During the last several month it became the one of the most biggest hotspots for the bitcoins and now BTC China takes the third place in bitcoins exchange all over the world. The opportunity for remittance to China becomes real because the China market is single and possesses the combination of large remittance inflow ($12 billion from the U.S. to China alone) and such factor provides considerable demand for Bitcoin the the country.

Argentina’s love affair with Bitcoin is also well documented, and this country is another commonplace receiver for remittance but the correlation between the USA and Argentina is not so reliable.

Both China and Argentina are ready for bitcoin involvement. However, notwithstanding the technical availability for China and Argentina are ready. But on a worldwide basis, despite the technical suitability for Bitcoin to disrupt remittance majority of the countries-receivers do not posses enough demand for Bitcoin to support remittance business significantly. So, finally, it is necessary to wait the moment of the local demand for Bitcoin as in early accepter countries.