OFW and other migrant workers around the world spend an average of 7.13% of the total amount of remittance just to send money back to their countries. This is the reason why they can truly benefit from the blockchain. By using the disruptive technology, money can be sent in a faster and affordable way.
OFW and migrant remittances comprise 10% of the Philippines’ gross domestic product (GDP). This is because almost 10 million Filipinos work abroad. It is reported that they were able to send a total of $28.1 billion in 2017 alone. A rise of 4.3% every year.
The usual methods of sending remittances back to the Philippines are through peer-to-peer transactions, bank deposits, or remittance services. These methods can take a lot of time and can also cost a good chunk of money just to send money. This is where blockchain and its cryptocurrencies come in.
Currently, even though this new technology is the best option to send money back home, it is frowned upon by the people it wishes to serve. OFWs and migrants think that this technology is complicated and vulnerable to fraud.
According to BloomSolutions founder, Mr. Luis Buenaventura, the lack of awareness hinders blockchain adaptation in remittances. He noted that around 50% of transaction fees can be cut off and can also transfer the money in mere seconds using blockchain technology.
- Read more: Lack of Awareness Hinders Blockchain Adoption in Remittances, Says Bloom Solutions Founder
It is also previously reported that Investment Evolution Coin Ltd. from Singapore successfully launched Investment Evolution Coin (IEC). The token aims to help OFWs in Europe and the Middle East send money to the Philippines faster and for free.