Youri Bebic, the global head of MoneyGram’s product and innovation, said in a recent interview that crypto assets will likely be the standard for international money transfers in the near future. Bebic made his remarks about crypto assets in an interview with the Institute for Robotic Process Automation and AI.
The top executive is optimistic on crypto asset adoption, saying it will likely it will be the standard for international transfers in the near future. Bebic says that it is indisputable that blockchain technology offers current money transfer services a faster alternative. Crypto asset transfers would mean that pre-funded bank accounts would no longer be necessary. Bebic says, “The money’s already there for such a change.” However, the most significant obstacle to such an option, today, remains low liquidity and underdevelopment in much of the world. Bebic feels that crypto asset exchanges could play a central part in this service as the industry grows. These exchanges would be held responsible for selling against the local currency for cash or as a deposit into user bank accounts. MoneyGram has been no stranger to the blockchain technology and Bebic may be hinting that the firm plans on rolling out such options in the future. MoneyGram has been a known partner of Ripple since, January last year. The second-largest money transfer firm is also known to be testing Ripple’s xRapid liquidity platform.
Almost instantaneous, low-fee options for international transfers will have profound implications for the economy of the entire globe. Many immigrants as of now have been sending remittance payments to their relatives back home. The fees for these transactions are nearly around 7.45 per cent, according to the research by the World Bank. Currently, the annual amount of remittances sent is between $400B USD and $500B USD. Projects like Stellar [XLM], Ripple [XRP] and others have been on the front lines in revolutionizing how we do international transfers. However, traditional money transfer services are taking note.
By all accounts, investments in money transfer services have been growing rapidly. For example, TransferWise is now worth nearly $3.5 B USD in valuation and is the largest fintech start-up firm in Europe. The money transfer industry is expanding rapidly. With further crypto asset adoption, we would soon see money move with an immense speed.