rewrite this title Richard Teng: Binance Users Have Saved $1.75B In Remittance Costs Since 2022

by
Alisa Davidson

Published: January 21, 2025 at 10:20 pm Updated: January 21, 2025 at 9:56 am

by Ana

Edited and fact-checked:
January 21, 2025 at 10:20 pm

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CEO of the cryptocurrency exchange Binance, Richard Teng, announced today at Davos that Binance users have collectively saved $1.75 billion in remittance fees, thanks to $26 billion in instant cryptocurrency remittances between users from 2022 to 2024.

Remittances play a vital role in the global economy, with projections indicating they could reach $913 billion this year. They serve as a crucial financial resource for economic migrants, enabling them to support their families and contribute to reducing poverty and inequality. However, remittances are often accompanied by high fees. According to the International Monetary Fund (IMF), fees for low-value remittances can range between 15-20%. In 2024, the average amount for international user-to-user cryptocurrency remittances on Binance was $470, suggesting that Binance users may have saved even more compared to traditional financial channels that charge higher fees.

Data from The World Bank reveals that the average cost of international fiat remittances stands at 6.65%. This means that Binance users sending cryptocurrency remittances rather than traditional fiat remittances could have saved approximately $1.75 billion in fees, thanks to the instant and fee-free nature of cryptocurrency transfers through Binance Pay.

Binance’s data also highlights that over half a million female users accounted for more than $4 billion in both domestic and international cryptocurrency remittances in 2024, further demonstrating cryptocurrency’s potential to empower and promote financial inclusion on a global scale.

Crypto Remittances: Why Do Users Find Them Important?

In addition to cost savings, Binance users have found that the speed of cryptocurrency remittances can be especially impactful in urgent situations. Imed, a Binance user from Algeria, shared an experience where a cryptocurrency remittance was used to pay for life-saving emergency treatment for the child of a family friend in France. He noted, “Binance Pay helped me understand the distinction between using cryptocurrency and local fiat currencies. While costs are nearly nonexistent when using cryptocurrencies, they can be significant with fiat. I am not just talking about monetary cost but about costs that cannot be quantified, such as someone’s health and someone’s life.”

Similarly, Diogo Mury, a user from Brazil, utilized Binance Pay to distribute relief funds for local victims of the Rio Grande do Sul flooding. These funds enabled the purchase of essential emergency supplies such as food, water, medicine, and fuel without the delays typically associated with international transfers.

“Since Binance was founded, its vision has been to increase the freedom of money globally. It is our sincere belief that crypto can significantly improve lives around the world by leveling the playing field and providing financial tools and opportunities to disadvantaged communities at a global scale. 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,” said Richard Teng, CEO of Binance.

“The value of low-cost fund transfers can be easily overlooked by people from wealthier economies, but it can be a vital lifeline for economically disadvantaged individuals in need of ways to make their earnings go further while supporting dependents thousands of miles away. Although $26 billion is still relatively small compared to global remittance volumes, we see this continuing to grow alongside crypto adoption as people begin to realize the ways the inefficiencies of traditional finance can be addressed by crypto,” he concluded.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles