​Coinbase urges using cryptocurrencies for money transfers

What’s new? Analysts at US crypto exchange Coinbase published material on the benefits of using cryptocurrencies for international money transfers. According to the study, Americans spend more than $12 billion annually on remittance payments, sending money abroad using traditional financial institutions with an average fee of 6,18%. In this, transfers using cryptocurrencies such as Bitcoin or Ethereum would be 96,7% cheaper.

Material on the Coinbase website

What else is known? According to Coinbase, transferring BTC to another wallet will cost an average of $1,5, while the transaction fee on the Ethereum network will be $0,75. The average waiting time for cryptocurrency transfers is about 10 minutes, while traditional money transfers can take from 1 to 10 days. At the same time, about 1 billion people around the world depend on money transfers.

Representatives of Coinbase urged US regulators to see the true value of responsible crypto products and services, as well as their ability to update an outdated system. They noted the exchange’s efforts in this direction by creating products that expand the use and adoption of cryptocurrencies.

Coinbase believes that cryptocurrencies and blockchain technology can expand economic freedom and opportunity around the world. And it would be better for the US authorities to embrace this fundamental innovation instead of current regulation of the industry through coercion, the report’s authors concluded.

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Coinbase stressed that the US accounts for about 25% of global remittances, or about $200 billion. Meanwhile, bank fees average 10,8%, money transfer operators 6,2%, and post offices 5.5%, and Americans spend about $12 billion a year to pay for them.

Cryptocurrencies can reduce the cost of money transfers by about 96,7%, as well as eliminate the presence of numerous intermediaries and time delays.

“You shouldn’t have to spend money to send money,” Coinbase believes.

The study noted that one in five American adults owns a cryptocurrency. In Ohio, Pennsylvania, and Nevada, more than 40% of voters who own cryptocurrency said these assets allow them to send money across state lines. Asia and Latin America are the top recipients of US remittances. In 2022, Americans sent about $67 billion to Asia and $52 billion to Mexico. Americans account for 94,9% of all remittances sent to Mexico, and the numbers are especially high for California ($18 billion), Texas ($8 billion), Florida ($1,7 billion), Ohio ($421 million), Pennsylvania ($404 million), and Nevada ($592 million).

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The report’s authors stressed that remittances represent individual financial freedom and an opportunity for all Americans to help those close to them, no matter where they are. Coinbase urged all users to join the Crypto435 initiative in order to be heard by the US authorities. The project aims to promote cryptocurrencies and support candidates in all 435 counties across the country who are positive about the industry.

After the US Securities and Exchange Commission (SEC) issued a notice to Coinbase about possible violations of securities laws, the exchange’s CEO Brian Armstrong announced his intention to organize 50 million US crypto users into a political force.