Many money transfer operators were not too happy with the debut of Bitcoin as an official means of payment in El Salvador.
Last Wednesday, the country precisely became the 1st who make BTC a legal means of payment. The President of El Salvador appreciated the future of the digital currency at its true worth, however, the services that process the lion's share of cross-border currency transactions are still cool with innovations.
Today, less than 1% of the total volume of global cross-border cash transfers is produced in the equivalent of digital currency. At the same time, experts expect that in the future, the digital currency will account for more than 500 billion of the annual volume of remittances. Bitcoin, despite some "non-recognition", is still one of the fastest and cheapest ways to send money across borders, if you do not rely on traditional transfer channels.
One of the largest money transfer operators MoneyGram previously announced that, in partnership with the crypto exchange, Coinme will let consumers buy and sell BTC for cash at 12,000 US locations. The company representatives said that they have built a bridge among fiat and cryptocurrencies, but it is precisely “turning it on” and “turning it off” that is the main obstacle to the further growth of the latter.
Western Union also noted that it had previously tested the use of BTC and other cryptocurrencies in money transfers, failing to find an optimal “use case” that would offer significant savings to customers.
According to Reuters, cross-border transaction fees averaged 6.5%, more than double the UN's 2030 target for sustainable economic development so far.
Institutionals does not yet share the optimism of the President of El Salvador, doubting positive changes for the country's economy against the background of the enactment of Bitcoin as a means of payment.