The Rise of Bitcoin in International Payments

Bitcoin’s Emergence as a Global Currency

Despite facing skepticism regarding its capability to handle small transactions, Bitcoin is gaining traction as a formidable player in international remittances and payments. Its ability to offer secure and low-cost cross-border payment options is an underappreciated gem in the world of finance.

The Role of Digital Currency Group

Under the leadership of Barry Silbert, Digital Currency Group (DCG) has invested in 18 Bitcoin exchanges, significantly bolstering the Bitcoin infrastructure globally. It turns out that the global Bitcoin party is just getting started, and DCG is providing the DJ! According to their reports, the monthly volume of cross-border payments using Bitcoin skyrocketed from nearly US$5 million to US$40 million between January and October 2016. Talk about a growth spurt!

Why Bitcoin? The Popularity Contest

So, why is Bitcoin winning the popularity contest in places like India and Kenya? The answer is simple: cost and efficiency. Bitcoin serves as a more budget-friendly alternative to traditional mobile payment networks like mPesa. Startups like Unocoin and BitPesa are not just playing a supporting role; they are redefining remittance markets and ushering people away from cash towards the digital age. It’s a little less ‘cash under the mattress’ and a lot more ‘cryptocurrency in your pocket.’

Regulatory Tightening: A Double-Edged Sword

Speaking of shifts in the financial landscape, South Korea’s strict new regulations are making it harder for bank accounts and credit cards to be obtained. Users now need a monthly commitment of at least US$400 to even think about opening a bank account. Talk about a buzzkill! Yet, as barriers rise, the appetite for Bitcoin-centric exchanges like Korbit has swelled, demonstrating that where there’s a will, there’s a way, especially in crypto!

The Demand for Bitcoin-Payment Startups

With the multi-billion dollar remittance industry struggling with operational costs and high fees, the demand for Bitcoin-payment startups is skyrocketing. It seems everyone wants a piece of the pie—and who can blame them? All eyes are on investment firms like DCG, whose support is pushing Bitcoin into uncharted territories for cross-border payments, proving that there’s still plenty of room for innovation in this digital Wild West.