economy
Sending money home across borders has long meant high fees and days of waiting, but new digital-currency 'rails' are starting to move funds in seconds for a fraction of the cost.
The World Bank has reported a global average remittance fee of around 6% of the amount sent, a figure well above the roughly 3% target set by the United Nations, and it's precisely this high cost that newer blockchain and stablecoin-based transfer systems are aiming to undercut by moving money faster and more cheaply than traditional networks.
About 0.5% is far lower than the documented global average, understating just how expensive traditional remittance channels actually are for many senders. About 20% would be an extreme outlier even for the priciest corridors, well beyond the typical average reported globally.
Traditional remittance costs stay high partly because money often passes through several intermediary banks and currency conversions before reaching its destination, each taking a cut, which is exactly the layered inefficiency that faster digital-currency rails are designed to bypass.
economy
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