A changing digital market offers new proposals in balance exchange and transfer services from one end of the world to another.
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There are increasingly digital platforms with remittance services, which benefit many people. Therefore, it seems to be becoming a sector that possibly expands and increases its position.
Worldwide, according to market analyses and statistical calculations by the World Organization for Migration, an average of 15% of the total income generated by immigrants is sent to their relatives in their country of residence.
This amount is equivalent to more than 800 million people worldwide who directly or indirectly benefit from this current asset.
In the specific case of Latin America and the Caribbean, an increase of almost 300% was shown in the amount obtained from remittances between 2020 and 2021.
A relatively volatile digital market
When talking about volatility, reference is made to the variation in the price of a particular asset in a specific period. In turn, it is perhaps considered one of the leading indicators that allow evaluating the risk profile of an investment, whether digital or traditional.
The greater the volatility index, the greater the risk that the asset commits.
The digital financial market is characterized by being one of the most volatile because the valuation of its assets is based on the relationship between supply and demand, which depends solely and exclusively on the users of digital currencies.
On the other hand, these digital assets tend to vary in price drastically in relatively short periods, as has been shown so far this year with the cost of cryptocurrencies.
This indicator does not distinguish between the most positioned digital currencies; it equitably affects the ecosystem without preferences; this indicates that quick operations are usually generated that allow users to obtain at least a minimum profit before acquiring a loss.
Despite this specific feature of the digital financial market, people are beginning to adopt it and use endless platforms that allow them to execute transactions that benefit all parties.
Transcends the sending of remittances to the digital
Remittances are not an operation that has been in the market for a short time; these transactions have been carried out for many years, only unlike those times the rate of immigrants has increased significantly.
Previously, the primary beneficiaries of this type of financial tool were the families with the lowest resources, presenting remittances as their main source of income.
The World Bank released the figures that reflect the increase in remittances during and after the pandemic, where Latin America obtained more than half a billion dollars for this concept alone.
The traditional way of operating the exchange houses that offer the remittance service is dedicated to storing the money in cash and later transferring it to the corresponding accounts of the beneficiaries. This process even requires high commission charges.
This way of operating becomes obsolete next to the proposal of Fintech-type companies, which offer the same remittance service digitally, offering efficiency and effectiveness when transferring money to less favored people.
Countries with the highest remittance traffic
Fintech-type companies that offer remittance services that cover not only a more significant number of clients but also better services that will enable them to retain their client portfolio.
In Colombia, the use of this type of company to send remittances showed an increase of almost 30% compared to traditional companies, which shows that transactions are safe.
We are seeing how the competition in this industry that is just beginning to impact the financial sector has reached interesting levels of positioning, which its users support.
In the specific case of Colombia, there are more than ten applications with which you can carry out any transaction with money from the country and internationally.
Another of the countries that are pretty identified with this technology is Chile, which has taken great advantage of establishing operators in other countries that make operations more comfortable, having physical assistance for any concern or procedure you wish to develop.
Conclusion
Blockchain technology has proven its versatility and ease of use, guaranteeing secure operations without geographic and money limits. The information you need can be found in Bitcoin-Prime trading system.
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