According to a Binance blog post: At the World Economic Forum in Davos, Richard Teng, CEO of Binance, highlighted how Binance users have saved approximately $1.75 billion in remittance costs through $26 billion in instant user-to-user crypto remittances between 2022 and 2024. This development underscores the growing role of crypto remittances as a vital tool for economic migrants supporting their families.
Global remittances are projected to reach $913 billion by 2025, yet traditional channels remain costly, with fees ranging from 15-20%, as reported by the International Monetary Fund. Binance is challenging this model with its fee-free and instant crypto remittance service, Binance Pay. Between 2022 and 2024, Binance facilitated $26 billion in crypto transfers, allowing users to avoid $1.75 billion in transaction fees. This shift represents a significant step towards democratizing financial access, with the average remittance amount being $470 in 2024.
Teng's presentation also explored cryptocurrency's potential to empower underrepresented communities. In 2024, over half a million female Binance users contributed more than $4 billion in domestic and international remittances. These figures highlight crypto's ability to enhance financial inclusion. Personal stories from users worldwide illustrate the transformative power of Web 3 in improving financial accessibility, particularly in developing regions. For instance, an Algerian Binance user utilized a crypto remittance to secure urgent medical care for a family friend in France, emphasizing the life-saving potential of such transactions.
Despite $26 billion in crypto remittances being a small fraction of the global market, Teng expressed optimism about its growth. As more individuals recognize the inefficiencies of traditional banking systems, crypto adoption is expected to accelerate. For people in developing economies, the savings from low-cost transfers can be life-changing, offering a means to extend earnings and support loved ones across borders.
Binance's presence at Davos reinforced its mission of fostering financial accessibility through blockchain technology. With robust security measures and a wide range of services, Binance is building an ecosystem to empower users globally. Binance Pay, a cornerstone of this vision, facilitates seamless transactions in over 300 cryptocurrencies, connecting users and merchants worldwide. This borderless design embodies Binance's commitment to removing barriers in the global economy, enabling users to shop with over 80 crypto tokens globally, including popular ones like USDT, USDC, BTC, and ETH.
