[2021-09-13] Money transfer providers may lose $400m to bitcoin wallet’

[gabbie2010]

Money transfer providers may lose $400m to bitcoin wallet
According to the report Salvadorans might resort to receiving funds from abroad via their chivo respectively thus jettison the services of the Western Union Money transfer. More news:

El Salvador’s latest Bitcoin app, the Chivo Wallet, could ensure that money service providers such as Western Union and MoneyGram lose around $400m in remittance commission.

According to a report by CNBC, these remittance service providers could start losing customers and money.

CNBC’s MacKenzie Sigalos said the loss in remittance commission could be close to $400m a year.

She said, “If you want to send $10 from Canada to El Salvador via Western Union’s app = $3.24 fee; Muun [to] Chivo wallet = $0.10; Chivo [to] Chivo = free. Present Bukkele’s new bitcoin wallet could cost co’s like Western Union $400m/y.”

According to CoinMarketCap, remittances account for a $6bn industry, almost 23 per cent of the country’s GDP. And money service providers like Western Union or MoneyGram are the chosen method of remitting funds to the country.

According to official data, about 60 per cent of remittances are through companies and 38 per cent are through banking institutions.

Source Link: https://punchng.com/money-transfer-providers-may-lose-400m-to-bitcoin-wallet/

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[NeuroticFish]

Elsaldoreans

New word?

El Salvador’s latest Bitcoin app, the Chivo Wallet, could ensure that money service providers such as Western Union and MoneyGram lose around $400m in remittance commission.

Probably the numbers will start low, but yes, banks, credit card companies and money transfer services are getting in trouble. People have now means to avoid their overly expensive services.
Maybe that's why VISA/Mastercard are doing moves towards crypto (in an attempt to save themselves), maybe this is one of the reasons I expect merchants happily embrace CBDCs too (unfortunately).

[SFR10]

El Salvador’s latest Bitcoin app, the Chivo Wallet, could ensure that money service providers such as Western Union and MoneyGram lose around $400m in remittance commission.

This is bound to happen at some point but IMO, it's not going to happen in its first year because of the following reason:

• A recent survey showed 2/3rd of Salvadorans either hate or have very limited knowledge about BTCitcoin and what that means is, it takes time before they would learn how to buy & transfer BTCitcoin to their loved ones in the country and until that happens, I'm pretty sure they'd stick to the traditional methods ^{[despite those disadvantages]}.

[jossiel]

That's a projection not until majority of the people of El Salvador are already versed using that app and as well as with bitcoin.

There's still an on-going familiarization with many of the people there because they're still new to it. But time will come and yeah, that projected loss from those known money transfers will happen.

[zanezane]

Well, there's one way for them to not go out of business, which is adopting cryptocurrency as a payment option because if the people sees how convenient it is to use crypto payments than the traditional then that's the time when they're getting lleft behind.