Stablecoins Could Slash Cross-Border Remittance Fees

Changpeng 'CZ' Zhao, co-founder of Binance, has proposed that stablecoins could cut cross-border remittance fees to near zero. He made this argument at the ASEAN Tech Summit in Manila on July 29.

The Philippines is one of the largest recipients of remittances globally, receiving around $35 billion annually. However, traditional channels currently skim off 3-10% from every transfer, resulting in losses of between $5 and $10 billion per year for Filipino families sending money to relatives abroad.

Zhao believes that stablecoin transactions processed on blockchains like BNB Chain could bring costs down to essentially zero. This is because the underlying business model doesn't rely on per-transaction fees, instead generating revenue through trading fees, lending, and other financial services built on top of the infrastructure.