Remittances Using Bitcoin

[aso118]

A lot has been written about using Bitcoin to cut remittance costs and putting the Western Unions of this world out of business.
But given the premium that bitcoin commands in India, users can actually profit while remitting funds to India.
That is a nice thought!

https://cointelegraph.com/news/receiving-remittances-in-india-with-rupee-you-lose-with-bitcoin-you-profit

[yayayo]

It's funny indeed. However the KYC terror imposed by governmental control freaks will surely reduce the number of people actually doing it. Of course it might still be possible to privately sell BTC against fiat cash, if fiat cash is available...

In my view Bitcoin will only succeed if fiat is taken out of the equation in the long term. Converting BTC to fiat is destroying all advantages of Bitcoin by adding costs, surveillance and centralized control over funds that could flow without such restrictions. this is especially true for most remittance applications. What we need is a closed-loop Bitcoin economy, where bitcoin are no longer converted to fiat anymore, but directly spent for goods and services by the receiver. That would eliminate all risks associated with conversion practices and show the full power of Bitcoin on a global and local scale.

ya.ya.yo!

[panju1]

It's funny indeed. However the KYC terror imposed by governmental control freaks will surely reduce the number of people actually doing it. Of course it might still be possible to privately sell BTC against fiat cash, if fiat cash is available...

In my view Bitcoin will only succeed if fiat is taken out of the equation in the long term. Converting BTC to fiat is destroying all advantages of Bitcoin by adding costs, surveillance and centralized control over funds that could flow without such restrictions. this is especially true for most remittance applications. What we need is a closed-loop Bitcoin economy, where bitcoin are no longer converted to fiat anymore, but directly spent for goods and services by the receiver. That would eliminate all risks associated with conversion practices and show the full power of Bitcoin on a global and local scale.

ya.ya.yo!

Taking fiat out of the equation might work if there are enough bitcoin users. To get a ton of people interested in bitcoin, such advantages (discount on purchases, profit on remittances) might be just what is required. Once you have enough people in the Bitcoin ecosystem, you can work on taking fiat out of the equation.

[amacar2]

It is true that bitcoin price is near $900 in local exchangers like unocoin due to limited bitcoin supply and high demand recently after government band high value notes to fight against black money. So if people start to send remittance in the form of bitcoin than the receiver in india can easily sell them for profit but when there will be more and more people sending remittance in bitcoin supply will be high and bitcoin price may be same like in global market. Also if majority of remittance start to come in bitcoin, indian government will surely implement lots of limitation and restrictions to bitcoin exchange platform which will surely add tax, exchanging cost or even they may ask about the source of fund.

Government is getting very high amount in tax from all those remittance so they will always support traditional types of long and really expensive remittance method, services.

[tee-rex]

In my view Bitcoin will only succeed if fiat is taken out of the equation in the long term. Converting BTC to fiat is destroying all advantages of Bitcoin by adding costs, surveillance and centralized control over funds that could flow without such restrictions. this is especially true for most remittance applications. What we need is a closed-loop Bitcoin economy, where bitcoin are no longer converted to fiat anymore, but directly spent for goods and services by the receiver. That would eliminate all risks associated with conversion practices and show the full power of Bitcoin on a global and local scale.

ya.ya.yo!

Goods producers and service providers would still need to maintain accounting and keep records, even in Bitcoins, as well as pay taxes or whatever compulsory payments the government may decide to impose on them. So I don't think it is ever possible to create an all-out full-scale Bitcoin economy that would be self-sufficient and completely free from any type of government intervention at that.

[darklus123]

It's funny indeed. However the KYC terror imposed by governmental control freaks will surely reduce the number of people actually doing it. Of course it might still be possible to privately sell BTC against fiat cash, if fiat cash is available...

In my view Bitcoin will only succeed if fiat is taken out of the equation in the long term. Converting BTC to fiat is destroying all advantages of Bitcoin by adding costs, surveillance and centralized control over funds that could flow without such restrictions. this is especially true for most remittance applications. What we need is a closed-loop Bitcoin economy, where bitcoin are no longer converted to fiat anymore, but directly spent for goods and services by the receiver. That would eliminate all risks associated with conversion practices and show the full power of Bitcoin on a global and local scale.

ya.ya.yo!

I think that it isnt funny at all, but you are right about the kyc control but i think as well that it is not the main objective of this current move. As take closer to it. This is much more of a slowly taking process and this move is to remove current process of western union as stated above

[calkob]

Yeah good idea but i had heard that there was not alot of volume in India, not sure how true that is. 

[Patatas]

https://cointelegraph.com/news/receiving-remittances-in-india-with-rupee-you-lose-with-bitcoin-you-profit

Have experienced it.Usually when I receive money from relatives from the US,the conversion rates always peek the remittance,our currency being lower in numbers compared with US $1.Either way works out great for me,wheather it be $$ or bitcoins.However,the tax cuts and bank service charges on international transfer actually cut a huge sum of money out of the total transfer which is why bitcoin wins it again.Nice post.

[panju1]

https://cointelegraph.com/news/receiving-remittances-in-india-with-rupee-you-lose-with-bitcoin-you-profit

Have experienced it.Usually when I receive money from relatives from the US,the conversion rates always peek the remittance,our currency being lower in numbers compared with US $1.Either way works out great for me,wheather it be $$ or bitcoins.However,the tax cuts and bank service charges on international transfer actually cut a huge sum of money out of the total transfer which is why bitcoin wins it again.Nice post.

If you are in the US, buying bitcoins and sending it across to countries like India (where it can be sold at a premium) is not difficult. You actually can make good profits there. The problem comes when you are sending money from India to other countries. In these cases, traditional bank channels might be cheaper.

[alyssa85]

In my view Bitcoin will only succeed if fiat is taken out of the equation in the long term. Converting BTC to fiat is destroying all advantages of Bitcoin by adding costs, surveillance and centralized control over funds that could flow without such restrictions. this is especially true for most remittance applications. What we need is a closed-loop Bitcoin economy, where bitcoin are no longer converted to fiat anymore, but directly spent for goods and services by the receiver. That would eliminate all risks associated with conversion practices and show the full power of Bitcoin on a global and local scale.

ya.ya.yo!

Goods producers and service providers would still need to maintain accounting and keep records, even in Bitcoins, as well as pay taxes or whatever compulsory payments the government may decide to impose on them. So I don't think it is ever possible to create an all-out full-scale Bitcoin economy that would be self-sufficient and completely free from any type of government intervention at that.

This. I think bitcoin's future is as an asset, a store of value, rather than as a currency. And regarding the remittance industry, the bitcoin players in it simply mimic the existing system of shops that transfer money etc, (which is costly) rather than innovating.

[Slark]

It is true that bitcoin price is near $900 in local exchangers like unocoin due to limited bitcoin supply and high demand recently after government band high value notes to fight against black money. So if people start to send remittance in the form of bitcoin than the receiver in india can easily sell them for profit...

While I still don't think that bitcoin is our current situation (we still need to exchange BTC to local FIAT) is not magical remittance solution.
But when one country has price of BTC set higher than average then sending standard FIAT instead of BTC is actually hurting you even more.
This might be another argument we can use in discussion when somebody will ask: "Why should I buy/use Bitcoin exactly"? Brilliant.

[Felimon]

The question I would have is what kind of people are using this service where we can hone in on some of the money to be made?  If the government cannot stop BTC from being used in this way, then this would be a great way to make some extra money, but you would need someone on the inside of the country I presume.

[~Bitcoin~]

The question I would have is what kind of people are using this service where we can hone in on some of the money to be made?  If the government cannot stop BTC from being used in this way, then this would be a great way to make some extra money, but you would need someone on the inside of the country I presume.

Government can't just stop bitcoin transaction but they can easily limit or even ban bitcoin exchange/trading platform if they like to. And as bitcoin transactions are not taxable or easily taxable government will never gonna support bitcoin based remittance company or service provider.

If you can't get local fiat easily by exchanging bitcoin than who gonna send remittance in bitcoin? And also to exchange larger amount of bitcoin, it will be hard to find local guy if there is no any legally operating exchange platform in your country. All this limit the possibility of sending remittance in bitcoin.

[MingLee]

Remittance has been one thing that has been discussed when it comes to the advantages of Bitcoin, especially a few months ago back when Trump's election wasn't certain and people on here were discussing how Mexicans would be able to send money back without having to go through Trump's wall.

As for workers doing the same thing from other countries, the same concepts apply.

[CraigWrightBTC]

I think it is not strange because The most suitable business related bitcoin is remittance except bitcoins become payment method for online shopping, investment and the other, we are know bitcoins has low fees for sending and it is very suitable for remittance of corporation for adoption bitcoin. If they are not do it their business will be die slowly because of the high fees.

[Kakmakr]

The volatility is only an issue when you have to deal with banks and the delays being caused when transfers are between different banking groups. I had cases where I sold Bitcoin on a exchange and it took 3 days for them to transfer the money from their bank account to mine.

So you cannot capitalize on trading in such an environment, if you have to wait on banks. They are useless and I cannot wait to get rid of them. If I had the choice, I would do everything in Bitcoin now.   

[nydiacaskey01]

I'll chose Bitcoin remittance over other remittance company like Western Union and I have been using Bitcoin to send money to my wife in the province since last year and I haven't encountered any problem. I'm saving money for not paying those additional charges when I send money. Example is every 15th and 30th of the month I send 0.2689BTC to my wife and all I pay a small fee which is less than 0.0002BTC versus sending through Western Unoin, I'll pay 0.006723BTC service fee.

[Sithara007]

I don't know if it is legal to use bitcoins for remittances in India. Because the trade of Bitcoins are heavily monitored by the Reserve Bank of India (RBI) and the rules and regulations are very vague. That said, till now I haven't heard anyone getting arrested for Bitcoin usage in India.

[tee-rex]

I'll chose Bitcoin remittance over other remittance company like Western Union and I have been using Bitcoin to send money to my wife in the province since last year and I haven't encountered any problem. I'm saving money for not paying those additional charges when I send money. Example is every 15th and 30th of the month I send 0.2689BTC to my wife and all I pay a small fee which is less than 0.0002BTC versus sending through Western Unoin, I'll pay 0.006723BTC service fee.

I assume that you get bitcoins directly for your signature and other activities, and don't buy coins on an exchange. Therefore you don't pay fees for moving fiat to your account at the exchange. That's fine, but how much does your wife pay for converting the bitcoins that you send her to fiat and for moving to as well as withdrawing money from her bank account?

[Sithara007]

I assume that you get bitcoins directly for your signature and other activities, and don't buy coins on an exchange. Therefore you don't pay fees for moving fiat to your account at the exchange. That's fine, but how much does your wife pay for converting the bitcoins that you send her to fiat and for moving to as well as withdrawing money from her bank account?

If you are sending remittances to India, then this is the time to use Bitcoins for the same! Right now, the exchange rates are going at $900 to $910 per coin in Localbitcoins India. So this is what you should do:

1. Purchase BTC in UK or US, at $740 per coin
2. Send the BTC to a localbitcoins wallet in India
3. Sell the BTC at $900 per coin.