Coinbase’s CLO Advocates for Crypto Remittance Payments

As a crypto investor with personal experience in sending remittances abroad, I couldn’t agree more with Paul Grewal’s call to action. The high fees and long wait times associated with traditional remittance services have always been a pain point for me and many others in my community.


Paul Grewal, the Chief Legal Officer at Coinbase, has urged legislators to embrace the utilization of cryptocurrencies for remittance transactions. In a recent statement on platform X, Grewal emphasized that digital currencies can significantly decrease the expensive fees and time-consuming processes associated with conventional cross-border payments.

Last year, I discovered that approximately one in every eight Americans transferred funds overseas to support their loved ones. However, I was dismayed to learn that the conventional methods for these remittances frequently carry substantial disadvantages. Specifically, these drawbacks include exorbitant fees and frustratingly long wait times.

The use of cryptocurrencies for remittance payments addresses a genuine issue. Sending funds to loved ones overseas shouldn’t result in exorbitant costs. Approximately one out of every eight Americans transferred money to their families living abroad during the previous year, making it a significant concern that warrants legislative attention due to its practical applications.

— paulgrewal.eth (@iampaulgrewal) June 20, 2024

According to Coinbase, some conventional remittance services may charge as much as a 6% fee on every $100 transferred. This high cost results from the presence of numerous intermediaries in the money transfer process. Furthermore, these traditional cross-border payments can take several days to be completed.

Based on Grewal’s perspective, Blockchain technology enables swifter and more straightforward cross-border transactions without requiring certain intermediary financial institutions, thereby reducing expenses and expediting the process for online money transfers.

Due to the surging popularity of cryptocurrencies, there is a pressing need for accommodating regulations in international money transfer solutions. There is a significant clamor from various users and sectors in the US for clearer guidelines to manage cryptocurrencies’ usage given the expanding range of applications for this technology.

In 2020, the World Bank reported that over $540 billion in remittances were sent to low- and middle-income countries, an impressive figure despite the economic challenges brought about by the COVID-19 pandemic. The growing popularity of cryptocurrencies as viable currencies has sparked increasing calls for easier global payment solutions from both industry leaders and policymakers.

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2024-06-21 03:01