Digital Currency Group: Bitcoin cross-border transaction volume increased nearly 10 times in 2016

While Bitcoin is often criticized for its inability to handle small transactions as a global currency, it remains one of the few safe currencies that can ensure the security of cross-border remittances and transactions.

However, for many years, Bitcoin's ability to process cross-border payments securely and at low cost has often been overlooked. Barry Silbert's Digital Currency Group (DCG), which has invested in 18 Bitcoin exchanges, has found that Bitcoin systems are developing rapidly in most parts of the world.

Digital Currency Group said that the number of cross-border Bitcoin transactions is growing rapidly every month. From January to October this year, the amount of cross-border transactions 500万美元上升到4000万美元.

Why are Bitcoin cross-border payments so popular?

In cities with largely unbanked services, such as India and Kenya, Bitcoin is cheaper and more efficient than other mobile payment networks. Startups such as Unocoin and BitPesa, both backed by Digital Currency Group, are working to shape the emerging remittance market and help people switch from cash to digital currencies.

This year, even South Korea, a country committed to providing affordable and advanced banking solutions, implemented new regulations on bank account and credit card applications. South Korea’s new regulations have raised the barrier to entry for people to use bank payment services.

For example, before, Korean citizens could open an account at any state-owned or commercial bank, with no hard and fast rules on the amount of money in the account. But now, the prerequisite for opening an account is to have at least $400 in cash flow per month.

The government’s strict regulation of banking services and financial platforms has increased the user base of some exchanges, and Bitcoin exchange Korbit has become a leader in South Korea’s fintech and cryptocurrency market.

Demand for Bitcoin Payment Companies Is High

The cross-border payments industry processes billions of dollars each year, but costs and fees have been rising, which explains why there is a growing demand for bitcoin payment startups and exchanges.

With investment companies such as Digital Currency Group continuing to provide financial support to innovative exchanges and payment service providers, the Bitcoin cross-border payment market will open up a new world of its own.