Wise Payments Rejects Support For Crypto Remittances Due To High Costs
Wise, a British fintech company, has ruled out the prospect of facilitating cross-border crypto remittance due to high expenses at this time.
According to Lupana on September 5, the payments platform acknowledged that cryptocurrencies have extra benefits, such as speeding up the money transfer process, but said that it is avoiding the charges associated with currency exchange.
“Currently, most people still have to do conversions between fiat and cryptocurrencies and incur unnecessary friction and fees during the process. We remain very focused on reducing those fees and friction when people move money around the world,” said Pedro Barreiro, Wise’s Brazil banking and expansion head.
In this passage, Barreiro highlighted the thriving digital asset market in Latin America while pointing out that Wise is also looking into the region for the cryptocurrency option.
Wise relationship with crypto
Wise users can only currently buy cryptocurrencies with money in their accounts. Additionally, if the platforms are governed by EU and British legislation, its users can also get funds from those that sell digital assets.
Other financial sites, such Dock, founded in Brazil, declared they would use cryptocurrency to process foreign remittances as they started their expansion plans, in spite of Wise’s pessimism.
Notably, Wise has developed a platform that supports currency conversion while facilitating remittance utilizing local bank networks. The model gets rid of the expensive cross-border transfer commissions.
It’s interesting to note that blockchain technology is being used more and more by fintech companies that are attempting cross-border transfers, citing instant transfers and lower prices.
Overall, there are still a number of challenges to using cryptocurrencies for remittance, including their limited utility, the high cost of exchanges, volatility, and legal restrictions.
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