Hello. In this post, we will tell you about the role of remittances in the global and national economies.
International money transfers bring significant benefits to developing countries in the social sphere. International personal money transfers are an important source of financing in the global economy. Visible remittance flows are superior in size to capital flows and represent a major source of funds for many developing countries (with high unemployment), whose citizens work in developed countries, sending home funds to support families.
Foreign currency receipts arriving in the country positively affect the current balance, as well as import opportunities. Transfers serve as an important means of covering the trade and payment deficit of the beneficiary countries. Thus, transfers affect the exchange rate of national currencies, the nature of production and import of goods for consumption. Moreover, the funds of labor migrants in their homeland are not a source of tax revenues to national budgets, since taxes are paid (if paid) in the host country. As families gain a foothold in the host country, cash flow settings change.
International remittances as a result of migration processes bring significant benefits to developing countries in the social sphere, including reduce poverty and inequality, improve access to health and education systems. For example, according to a UNESCO report, international remittances have a generally positive effect on education in low- and middle-income countries.
A long-standing problem in Myanmar is that it has been difficult for money to go in or out via the traditional international banking system. Such difficulty has isolated Myanmar’s people and businesses from the rest of the world, hindering progress and development in the country.
The solution of SKYBIT is to use cryptocurrency, which are digital assets that can act like money and flows freely on the internet regardless of country borders. Our main service is a cryptoasset exchange that allows traders from both Myanmar and around the world to convert between various cryptoassets as well as Myanmar Kyat. Cryptoassets can include cryptocurrencies like bitcoin, ether, and Facebook’s Libra. Cryptoassets can also include company tokens which can represent assets like company shares. Our payment processor allows businesses in Myanmar to easily receive payments from international customers who pay in cryptocurrency. The same platform can also allow donations from around the world to easily be received by aid organisations in Myanmar
