Binance, the largest crypto exchange by trading volume, has announced a significant milestone in peer-to-peer remittances. According to a statement shared with CryptoSlate, users of Binance collectively transferred $26 billion between 2022 and 2024, resulting in a total savings of $1.75 billion in remittance fees.
During the World Economic Forum in Davos, Binance CEO Richard Teng discussed how Binance Pay, the platform’s fee-free crypto transfer feature, has revolutionized global remittances. Teng highlighted the fact that while $26 billion is a small portion of global remittance flows, the figure is steadily increasing as more individuals turn to crypto as a solution to the inefficiencies of traditional finance.
Global remittance volumes are expected to reach $913 billion in 2024. Despite being a crucial source of financial support for families worldwide, traditional remittance methods often involve high fees and lengthy processing times. Reports from the International Monetary Fund (IMF) indicate that fees for smaller remittance amounts can reach as high as 15% to 20%, with the World Bank noting an average global fee of 6.65% for cross-border fiat transfers.
Binance’s fee-free approach has been a game-changer in the remittance space, offering users significant cost savings. In 2024, the average crypto remittance on the platform was $470, providing users with substantial savings. Additionally, data from the platform revealed that over 500,000 women were responsible for more than $4 billion in domestic and international remittance transactions, showcasing how crypto can promote financial inclusion and gender empowerment on a global scale.
Teng emphasized the importance of fee-free transfers for low-income individuals who rely on every dollar to support their families in distant locations. For migrant workers, crypto remittances offer an efficient and affordable way to send money home without delays or excessive fees. Teng stated, “Remittances are an important use case for crypto that directly serves our mission. International remittances are traditionally very expensive, but crypto offers a new way to send funds home for migrant workers at incredibly low- or even no-cost without having to wait days for the funds to arrive.”
In conclusion, Binance’s innovative approach to peer-to-peer remittances has had a significant impact on the global financial landscape, providing users with a cost-effective and efficient way to transfer funds across borders. As crypto adoption continues to grow, the platform is poised to play a pivotal role in reshaping the remittance industry for the better.