Could cryptocurrency be the future of money transfers?

9 Nov 2018

Cryptocurrencies have been hailed as a potentially cheaper and faster alternative to traditional money transfer providers. The theory isn’t without evidence: earlier this year we saw one of the fastest and cheapest international transfers take place on a blockchain. The transfer of US$99 million worth of Litecoin cleared in just 2.5 minutes and cost only US$0.40 in fees. The event marked a huge milestone for cryptocurrencies to be used for international money transfers.

But just how popular is the idea? In June 2018, Finder Canada conducted a survey of 2,000 Canadian adults to figure out if Canadians are ready and willing to use cryptocurrencies to transfer their money overseas. The study found that almost one in three Canadians (30%) would consider using cryptocurrency for international money transfers if it were cheaper and faster than their usual service provider – that’s an estimated 8.6 million Canadians.

Let’s break it down

Gender

Interestingly, the study found that women were more likely to choose cryptocurrency for international money transfers if it were the cheapest and fastest option, with 32.26% of women saying yes, compared to just 27.32% of men.

In terms of fees, women were also more likely to choose cryptocurrency if it were the cheapest option, with 12.72% of Canadian women saying yes compared to 10.38% of men. However when it comes to speed, men appear to value the time it takes for their transactions to clear more highly, with 9.4% of men saying they would choose cryptocurrency if it were the fastest option, compared to just 7.14% of women.

Generation

Millennials are often referred to as the “digital generation”, so it should come as no surprise that they were more likely than any other age group to consider using cryptocurrencies for international transfers. According to the results, 36.64% of millennials said they would choose cryptocurrencies if it were the cheapest and fastest option. This is compared to Gen X (33.69%) and baby boomers (23.35%).

Interestingly, only 28.37% of Canadian millennials wouldn’t consider using cryptocurrencies for international transfers, compared to a vast majority of baby boomers who said the same, at 66.11%.

Region

While results for all Canadian regions were almost level across the board, some regions were more likely than others to adopt cryptocurrencies as their next money transfer option. People from the Prairie Provinces were most open to the idea, with 38.16% of Canadians from this region saying they would consider using cryptocurrencies if it were cheaper and faster than other options.

The Atlantic region were second most enthusiastic, with 36% of people from this region saying the same, followed by Canadians from the the West Coast (32.03%). People from Central Canada were least enthusiastic about using cryptocurrency to transfer money overseas, with just 26.88% saying they would consider the alternative.

The future of money transfers?

Using cryptocurrencies to transfer money overseas might not be mainstream just yet, but this study shows it certainly appears to be heading that way.

If you’re still feeling in the dark about cryptocurrencies or are interested in finding out more, read our guide to cryptocurrency containing key terms, providers and players in the crypto world.

Methodology

This data is from a survey of 2,000 Canadian adults commissioned by finder.com and conducted by OnePoll in June 2018. Due to not having enough respondents, the North region (Nunavut, Northwest Territories, Yukon Territory) was not included.
Go to site