Digital Currency Foundation

UK Small Businesses Could Save £800 Million per Year on International Transfers if They Switched to Digital Currencies

LONDON, January 15, 2019 /PRNewswire/ --

Research released today on behalf of the Digital Currency Foundation has shown that UK SMEs could save £800 million a year if they switched from existing financial institutions to instead use digital currencies for their international money transfers. The DCF will be driving a Digi-van advertising this fact to the major UK commercial banks' headquarters in the City of London today.

The research also found that those living in the UK sending money to loved ones abroad are losing as much as £427 million per year because they continue to use conventional financial services for their international transfers.

Digital Currencies offer a quick and low cost payment method for consumers and businesses by removing the need for traditional intermediaries, which can in the case of international transfers cost up to 10% of the total payment amount in fees, and take several days to arrive.

The data released today coincides with the 2^nd Annual UK National Digital Currency Day. The day's highlights will include a roundtable event involving industry leaders and officials from Her Majesty's Treasury to discuss the need for appropriate regulation in the UK. The day will conclude with a reception in Parliament to celebrate the transformative potential of digital currencies and the benefits they currently offer to UK consumers and businesses.

Mihir Magudia, Managing Director of the Digital Currency Foundation, commented: "This research should act as a wakeup call to businesses across the country.  Using Digital Currencies can save them significant sums.  They offer a fast, cheap and secure alternative to traditional payment methods, an advantage that is magnified in the sphere of international payments. The raison d'être of the Digital Currency Foundation is to highlight the benefits digital currencies offer, and this research shows that today, on the 2^nd annual UK National Digital Currency Day, this role has never been so important."

Notes to Editors:

Total achievable saving = potential savings for SMEs making payments abroad + potential savings for those sending money to friends and family abroad.

Remittances: 

Under existing financial services:
Volume - 2017 UK remittance estimate^[1]: 9.274 billion USD = 7.32 billion GBP^[2]
Cost - Average of the cost of remitting^[3] = 8.58%
Total cost = 7.32 billion * 0.0858 = £628 million
Crypto comparison:
Total Transaction fee percentage = GBP-BTC cost + BTC-BTC cost + BTC-FX(foreign currency) cost