According to a research conducted at Cambridge University, there will 2.9 to 5.8 million users who will use encrypted digital currency, mostly bitcoins. Bitcoin is an encrypted digital currency that was invented in 2008 by a group of programmers. Today, most of the users consider bitcoin for international money transfer, especially in Australia.
The bitcoin transactions are verified by the network nodes and the records are maintained in decentralized record book known as blockchain. The bitcoin potential is evident from the fact that Forbes predicts 15% of the US banks will use blockchain technology by 2017. Bitcoin has various applications but bitcoin for international money transfer is considered as the most feasible aspect. Let us explore the possibilities of incorporating bitcoin for international money transfer.
Lower Transaction Costs
Bitcoin technology is basically known as a peer-to-peer payment system. Here, there is no need of an intermediary for the money transfer. This is contrary to the case of online remittance companies where you need a third-person to process the transaction. This results in paying a transaction fee. The bitcoin technology does not require a third-party intervention because it managed by the users itself. Hence, the users don’t need to pay any transaction fee.
Bitcoin for international money transfer does not require third-party intervention because the digital currency is in the encrypted format. Therefore, there is a reduced risk of theft and misuse. The transaction is broadcasted in the network of computers and finally, it is verified by the network nodes.
Freedom for Payments
The main reason for usage of bitcoin for international money transfer is that there are no restrictions on usage. Whether it’s a holiday or cross-border issues, bitcoin system is not bounded by any of these restrictions. You can use bitcoin for international money transfer from one corner of this world to another. As mentioned earlier, you are the only authority in this case. There is no other central authority that will control your block chain transactions.
Privacy of the Users
When you go to a bank or remittance company for money transfer, you are required to reveal your identity by submitting valid documents. Here, your personal identity is revealed. But when you use bitcoin for international money transfer, your personal identity is completely intact. Nobody can invade your personal privacy in block chain transactions. This means that your personal information cannot be stolen by unsocial elements.
But, the bitcoin transactions are visible to everyone. When you use bitcoin for international money transfer, other users can see the transaction but they will not be able to view your personal information. Apart from this, the transactions are safe and secure.
Bitcoin for International Money Transfer Roadblocks
Lack of Technical Knowledge and Outreach
Bitcoin is slowly gaining grounds but most of the people don’t prefer it because they don’t have prerequisite technical knowledge. The bitcoin payment system is dependent on technological advancement. But, most of the users in the world find it hard to implement this knowledge. Instead of using bitcoin for international money transfer, they prefer availing services of banks and online remittance companies.
The awareness about bitcoin for international money transfer is a major hurdle in the worldwide acceptance of bitcoin system. People are not aware of this technological advancement. Most interesting of all, developing countries like India has set up vigil on bitcoin transactions. Surprisingly, India even has websites to trade bitcoin. On the contrary, Australia has legalized bitcoins and can be used as an alternative for money. Citizens can start using it as money from 1st of July 2017.
The Developing Stage and Volatility
As bitcoin system is still in its infant stage, there is a room for a lot of improvisations. Work is going on for the development of tools and software that will further secure and enhance the bitcoin working system.
As the bitcoins are limited and the number of users increases every day, this payment environment is highly volatile. That’s why; many users are afraid of using bitcoin for international money transfer.
Not only for payments, but bitcoin is used for transferring digital documents as well. The immense potential of bitcoins makes it a deserving candidate for payment transactions. The users can opt bitcoin for international money transfer as it offers lucrative benefits. Countries like India and Australia are increasingly considering bitcoins for money transactions now. So, maybe in the future you can plan and transfer money from Australia to India using bitcoins.