According to recent studies, cryptocurrencies can improve the current banking system. This is so that users can use digital currency instead of the existing settlement system. Blockchain technology and cryptocurrencies are seen by certain industry actors as remittance-improving options.
Research by the International Association of Money Transfer Networks (IAMTN) found that by cutting out intermediaries like banks and keeping costs down, the blockchain technology that powers digital currencies enables quicker transactions. Additionally, it claims that blockchain technology makes cryptocurrency transactions quick and easy. Therefore, the need for third parties and the banking system disappear.
The non-profit group known as IAMTN represents international payment service providers. In order to pursue the implementation of safer, more dependable, quicker, less expensive, and transparent international payment systems, it works closely with governments, regulators, regional organizations, and private businesses.
IAMTN said that the decline in current financial links and the rise in the volume of cross-border payments had necessitated research into blockchain technology.
The ultimate use case for the technology in money transfers is yet unknown, despite the claimed advantages of blockchain in payments, as per the study. In addition to blockchain, the IAMTN has cited open application programming interfaces and artificial intelligence as technologies that can enhance cross-border transactions.
The organization also noted in its research that transfer service providers frequently encounter barriers in the form of prohibitive national regulations or the absence of legislation regulating such advances when they are ready to integrate new technologies into their processes.