Recent research indicates that crypto currencies can enhance the traditional banking system. This is because people can swap the current settlement infrastructure with digital currency.
Some participants in the cross-border payment processing sector view blockchain and cryptocurrencies as remittance-enhancing solutions.
According to a study by the International Association of Money Transfer Networks, the blockchain technology that drives digital currencies enables rapid remittances by removing middlemen such as banks and so reducing expenses.
The study further stated that with the use of blockchain technology, crypto transactions become fast and seamless. In addition, third parties and the banking system become unnecessary.
IAMTN noted that the necessity to investigate blockchain technology is prompted by the decline in existing financial connections and the increase in the volume of cross-border payments.
Despite the purported benefits of blockchain in payments, the ideal use case for the technology in remittance is still unclear, based on the findings.
In addition to blockchain, the IAMTN has mentioned artificial intelligence and open application programming interface as technologies that can improve cross-border transactions.
According to the report, remittance service providers who are eager to incorporate new technologies into their processes frequently face obstacles in the shape of restrictive national rules or the absence of legislation overseeing such innovations.
Global payment service companies are represented by the IAMTN, a non-profit membership organization. It collaborates closely with governments, regulators, regional groups, and private enterprises to advance the development of safer, more dependable, faster, less expensive, and transparent international payment systems.
Meanwhile, crypto such as Bitcoin (BTC) appear to be gaining more political support in the US, with the nation’s third-largest political party voicing public support of the major digital asset and confidence for its sustainability.
The political alliance issued the following statement via its official Twitter account:
In a blog post dated February 2020, the Californian section of the Libertarian Party declared support for cryptocurrencies, referring to Bitcoin as the “greatest tool of human liberty that humanity has ever invented.”
The Libertarian also takes cryptocurrency contributions made through BitPay, which enables users to make payments in Bitcoin and other prominent cryptocurrencies.