What makes Blockchain Transfers Better.

Let’s first remind everyone of the high fees charged for international currency transfers in the currently accepted currency transfer system.

Why do you think it is so expensive to make currency transfers?

Well, first of all, any of the global money transfer systems (banks, Western Union, MoneyGram) all have costs associated with maintaining a global physical presence. All those offices and the staff to man them is very expensive, and the cost is passed along to customers in various fees.

Banks also have to bear the costs of conversions. In a recent study the World Bankdetermined that a traditional money transfer for private citizens costs over 7% of the payment amount.

Cryptocurrency transfers avoid the expensive real-world movement of currencies. This provides favorable transaction costs, speed and reliability in the network’s operation. Converting these cryptocurrencies to fiat currencies will then cost roughly 1.5-2% using most third-party cryptocurrency exchanges.

That’s a savings of more than 5% of the payment amount for most transactions.

While most blockchain projects are currently working on solving this more for corporations than individuals, there are still some cryptocurrencies looking to make global transfers less expensive, or even free, for the individual.