One target of the UN Sustainable Development Goals is that by 2030, remittance fees should be less than 3%, and total fees to send and receive money between a pair of countries should be no more than 5%. Some researchers believe that to be truly affordable, the first goal should be even less than 3%.
The International Monetary Fund has estimated that reaching this target could generate $32bn (£26bn), even apart from the direct-cost savings.
This is because remittances have such powerful knock-on effects for the economy, and people tend to send more in remittances when fees are lower.
Yet the world is far off this target. According to the World Bank, the global average is 6.2%, over double the target.
Having a good crypto exchange locally solves this. I sent a few thousand dollars to a cousin via a ethereum layer2 and it cost literally cents to send. Also helps with the legal hassle as exchanges need to know their customers.
I had similar thoughts when reading the article. Fees of 3 or even 5 percent should be a joke in 2024.
Whenever you have a problem and think crypto is a solution, you suddenly have two problems.
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