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ARK Invest CEO Cathie Wood Suggested Cryptocurrency Usage in $700 Billion Remittance Market

Thu, 07/22/2021 - 07:58
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Arman Shirinyan
Cathie Wood encourages usage of cryptocurrencies as remittance tool and solution to high fees in the industry
ARK Invest CEO Cathie Wood Suggested Cryptocurrency Usage in $700 Billion Remittance Market
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At the recently held B Word conference, Cathie Wood, Elon Musk and Jack Dorsey discussed digital assets, Bitcoin and the cryptocurrency industry in general. One of the topics of discussion was the usage of Bitcoin as a payment tool in the remittance industry.

You are paying in from 8% to 30% of your $100 that you send back to your family. That is a social responsibility I would submit.

ARK Invest CEO and CIO Cathie Wood has pointed out a large number of funds that the remittance market is losing because of high fees. She also noted that there are countries in which GDP largely relies on remittance only. Wood gave the example of Tonga and El Salvador. In the case of the Kingdom of Tonga, 30 percent of the GDP fully depends on remittance.

According to the Lord Member of Parliament for the Niuas, Parliament of the Kingdom of Tonga Lord Fusitu, Bitcoin-based payment gateways could save up to $40 billion in fees for developing nations. That number exceeds the entire U.S. aid budget.

In 2022, remittance volumes are expected to hit $556 billion even after the coronavirus pandemic, according to the World Bank's 2021 remittance report. Remittance industry fees go as high as 30 percent per transaction for a transfer as low as $100. Bitcoin and digital assets are commonly suggested solutions for expensive overseas transactions.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.