Mexico, Guatemala, Nigeria, Egypt, India, China Lose Billions Every Year in Remittance Fees – But Stablecoins Could Change Everything

Published on September 17, 2025

By: Tuhin Sarkar

Mexico, Guatemala, Nigeria, Egypt, India, and China lose billions every year in remittance fees, a painful reality for migrant workers and their families. These fees, often as high as 6.5%, consume a huge chunk of the money meant for vital family support. With billions of dollars disappearing into costly transfers, it’s a financial drain that many cannot afford. However, there’s a potential solution that could change everything: stablecoins. By offering low transaction costs and instant transfers, stablecoins could significantly reduce the fees associated with remittances. Migrant workers from these countries could send money home faster and at a fraction of the cost. This simple change could empower families, boost economies, and unlock enormous savings. The adoption of stablecoins promises to revolutionize the remittance process, providing a fairer, more efficient alternative to traditional methods.

Migrant workers across the world send billions of dollars back home each year to support their families. In 2025 alone, the global remittance market is expected to hit $913 billion, according to World Bank data. But there’s a problem. The high costs of traditional remittance services, with average fees reaching 6.5%, mean over $59 billion vanishes into transaction fees. This is where stablecoins, a new form of digital currency, can make a dramatic difference.

Stablecoins are poised to save workers and their families over $39 billion annually in remittance fees. With a small, affordable fee structure, stablecoins offer a faster, cheaper, and more efficient way to send money globally. This is a game changer for migrant workers, particularly in developing countries, where remittances play a vital role in sustaining families. So, how can stablecoins disrupt the traditional financial system and reshape the future of global remittance flows?

Rizon found:

• India could save about $5.5 billion a year.
• Mexico could save a little over $3 billion.
• China could save $2.3 billion.The Philippines, Pakistan, and Bangladesh could all save between $1 and $1.8 billion each.
• Even countries further down the list, such as Guatemala, Nigeria, Egypt, and Ukraine, could still save close to a billion dollars combined.

In today’s fast-paced world, technology continues to change the way we handle money, and one of the most significant changes is the rise of stablecoins. These digital currencies, which are linked to stable assets like the US dollar, have the potential to save billions of dollars in transaction fees, especially in the remittance sector. But the benefits of stablecoins extend far beyond just money transfers. They are set to revolutionise not only the remittance industry but also the global tourism market.

As the global remittance market continues to grow, countries like India, Mexico, China, and the Philippines depend heavily on these funds. Migrant workers send home money to support their families, which helps their home countries’ economies. However, high transaction fees often take a large portion of the money being sent. Stablecoins could change this, allowing for faster, cheaper, and more efficient transfers. By eliminating hefty fees, stablecoins could transform how remittances are sent, providing significant savings for workers and their families.

But it doesn’t stop there. The tourism industry stands to benefit in a big way. Stablecoins can make international travel smoother and more affordable. Here’s a closer look at how stablecoins could reshape both remittances and the tourism sector, offering a win-win situation for countries, businesses, and consumers alike.

How Stablecoins Work and Why They Matter

Before diving into their impact, it’s important to understand what stablecoins are and how they function. Stablecoins are digital currencies designed to have a stable value. Unlike other cryptocurrencies, which can fluctuate wildly, stablecoins are pegged to traditional assets like the US dollar, the euro, or even gold. This means they maintain a steady value, making them an ideal option for international payments.

For example, if you want to send money from the UK to India, a stablecoin transaction would avoid the volatility that typically comes with cryptocurrencies like Bitcoin. This stability ensures that the recipient in India receives an amount close to what the sender intended, without worrying about dramatic fluctuations in the exchange rate.

Stablecoins Are a Game Changer for Remittance Fees

One of the most immediate benefits of stablecoins is their ability to drastically reduce remittance fees. According to research from Rizon, a stablecoin app designed for everyday spending, stablecoins can save migrant workers and their families billions of dollars each year. In 2025, $913 billion is expected to be sent globally in remittances, with fees currently averaging 6.5%. This means over $59 billion will be lost in transfer fees alone.

For example, when a worker sends $50 through traditional channels, they may lose up to $3.25 in fees. But through a stablecoin app, the fee drops to just $1.09. This is a massive difference, and when applied across the billions of dollars sent each year, it becomes clear how transformative stablecoins can be.

Potential Savings for Major Remittance-Receiving Countries

The impact of stablecoins could be enormous, particularly in countries that receive the most remittances. Let’s take a look at the potential savings for some of the top remittance-receiving nations:

• India: India could save up to $5.5 billion annually if stablecoins were used for remittance transfers.
• Mexico: Mexico stands to save over $3 billion every year.
• China: China could save $2.3 billion annually through the adoption of stablecoin remittances.
• The Philippines, Pakistan, and Bangladesh: These countries could each save between $1 and $1.8 billion annually.

Even smaller countries like Guatemala, Nigeria, Egypt, and Ukraine could collectively save billions. This money could go towards essential needs like housing, food, healthcare, and education. Instead of losing a significant portion of remittances to high transaction fees, these savings could improve the quality of life for families and communities worldwide.

How Stablecoins Will Benefit the Tourism Industry

While stablecoins are already making waves in the remittance sector, their potential to benefit the tourism industry is equally impressive. Here’s how:

Lower Transaction Costs for Tourists

When tourists travel abroad, they often face high transaction fees when making purchases or converting money. These costs add up quickly, especially for travellers who are on a budget. Stablecoins offer a more affordable solution. Because stablecoins have low fees compared to traditional financial services, tourists can save money on every purchase or transaction.

For example, instead of paying a hefty foreign exchange fee or a fee for using a credit card abroad, a traveller can use stablecoins to make purchases with minimal charges. This makes it easier for tourists to manage their money, whether they’re booking hotels, buying souvenirs, or enjoying local experiences.

Fast and Efficient Payments Across Borders

Stablecoins enable quick and efficient payments, even across borders. One of the main drawbacks of traditional financial systems is the delay in processing payments. Bank transfers or credit card transactions can take several days, especially when sending money internationally.

With stablecoins, transactions can be processed in seconds. This speed makes a world of difference for travellers who need to make quick payments or are in a rush. Whether it’s paying for a last-minute flight or settling a bill at a restaurant, stablecoins ensure that tourists can spend their money instantly without waiting for transactions to clear.

Financial Inclusion for Underserved Communities

In many countries, access to traditional banking services is limited, particularly in rural or underserved areas. Stablecoins can bridge this gap by providing a low-cost, accessible alternative for people who are otherwise excluded from the financial system. Tourists visiting remote regions can benefit from stablecoins, allowing them to make payments without relying on traditional banks.

This is particularly important in developing countries where access to banking services can be scarce. By embracing stablecoins, countries can attract more tourists and encourage local businesses to accept digital payments, further boosting the local economy.

Avoid Currency Exchange Fluctuations

When travelling abroad, tourists often face the problem of fluctuating exchange rates. One day, you might get a good exchange rate, and the next day, it could be worse. This unpredictability can lead to tourists losing money on currency exchanges. Stablecoins offer a solution. Since stablecoins are pegged to a stable currency, like the US dollar, tourists can avoid the risk of losing money due to changing exchange rates. They can hold stablecoins, use them for purchases, or convert them to local currency without worrying about fluctuations.

Simplified Cross-Border Transactions

Stablecoins simplify the process of making cross-border payments. Tourists no longer need to deal with the hassle of exchanging currency at banks or money exchange booths, which often come with high fees and poor exchange rates. With stablecoins, tourists can send money or make purchases directly, without the need for intermediaries or middlemen. This seamless process helps travellers save time and money, making the overall travel experience more enjoyable.

Stablecoins and Tourism: A Powerful Combination

Stablecoins offer significant advantages to the tourism industry by reducing costs, increasing efficiency, and providing a more inclusive financial system. By adopting stablecoins, countries and businesses can cater to the growing demand for digital payments, making it easier for tourists to spend money, manage their budgets, and engage in local economies.

The ability to make low-cost, instant payments is especially valuable in the fast-paced world of travel. Whether it’s booking accommodations, paying for experiences, or shopping, tourists can enjoy a smoother and more affordable experience by using stablecoins. And for businesses, accepting stablecoins opens up new revenue streams, allowing them to attract a wider range of international customers.

The Role of Stablecoins in Strengthening Global Tourism

As more people travel the world, stablecoins can play a critical role in making cross-border transactions simpler and cheaper. Countries that are heavily reliant on tourism, such as Thailand, France, and Italy, could greatly benefit from stablecoins by encouraging more tourists to visit and spend money in their local economies. Stablecoins could become the new standard for payment, helping to increase the flow of money and boosting the overall economic health of the tourism sector.

The integration of stablecoins into the tourism industry could pave the way for a more inclusive and efficient system, empowering both tourists and businesses to take full advantage of global travel opportunities. It is clear that the adoption of stablecoins could reshape the tourism landscape, creating new opportunities for economic growth and enhancing the travel experience for everyone involved.

A Bright Future for Stablecoins in Travel and Remittances

In conclusion, stablecoins are set to revolutionise both the remittance and tourism industries. They offer a more efficient, cost-effective, and secure way to send money across borders, saving billions of dollars in fees. By adopting stablecoins, migrant workers and their families can benefit from lower transaction costs, allowing them to send more money home for essential needs like food, healthcare, and education.

In the tourism industry, stablecoins offer travellers and businesses a chance to reduce transaction costs, avoid currency fluctuations, and simplify cross-border payments. As stablecoins continue to gain popularity, they will play a key role in shaping the future of global finance, making international travel more accessible, affordable, and seamless for everyone.

Stablecoins: A Breakthrough for Migrant Workers

Remittances are often the primary lifeline for families in countries such as India, Mexico, China, and the Philippines. According to Rizon, a stablecoin app created for everyday spending, stablecoins could revolutionize the remittance industry by eliminating the high fees that often accompany traditional methods. For instance, when a worker sends $50, they typically pay about $3.25 in fees. Using stablecoins, however, the same transaction would cost just $1.09. This represents a significant saving of over 66%.

The potential impact is immense. India, the largest remittance-receiving country, could save around $5.5 billion annually by switching to stablecoin transactions. Mexico could save over $3 billion, while China could save $2.3 billion. Even smaller nations like the Philippines, Pakistan, and Bangladesh stand to save billions of dollars in remittance fees if stablecoins become the primary method of transfer.

How Stablecoins Save Billions in Fees

Stablecoins operate on blockchain technology, offering a transparent, decentralised, and secure way to transfer money. Unlike traditional banks, which can take days to process transfers and charge high fees, stablecoins can process transactions almost instantly for a fraction of the cost. This is particularly valuable for migrant workers who need to send money quickly and affordably to their families.

For example, sending $10,000 from the U.S. to India using stablecoins would only cost about $7.50—far less than traditional remittance services, which could charge hundreds of dollars for the same transaction. With such a dramatic cost difference, migrant workers and their families could direct more of their hard-earned money toward essential expenses like housing, food, education, and healthcare.

The Global Impact of Stablecoin Adoption

If stablecoins were adopted on a global scale, the world’s top remittance-receiving countries could collectively save billions of dollars each year. Rizon’s calculations show that the combined savings could surpass $39 billion annually, based on 2025’s projected remittance figures. This money, instead of being wasted on unnecessary fees, could empower families to improve their living conditions and invest in their future.

Countries like Guatemala, Nigeria, Egypt, and Ukraine, which are also significant recipients of remittances, could save close to a billion dollars collectively. These savings could help lift families out of poverty, improve access to education, and support healthcare systems that are critical to the well-being of vulnerable populations.

Transforming the Remittance Model Forever

Stablecoins offer more than just lower fees; they also transform the remittance model entirely. Traditional remittance services often require the recipient to pick up the money in local currency, which can be inconvenient and subject to exchange rate fluctuations. With stablecoins, recipients can receive the funds in a digital currency pegged to the U.S. dollar, a stable and globally recognised currency. This opens up new possibilities for recipients, who can now hold their funds in stablecoins, send them to others, or convert them into local currency when needed.

This new system also enables recipients to spend their stablecoins via a Visa card, giving them access to a global payment network. They can use the stablecoins for daily purchases, withdraw cash from ATMs, or transfer the funds to others without worrying about the high costs of traditional bank transfers or currency exchanges.

A New Era for the Global Economy

As countries like India, Mexico, and China rely heavily on remittances to support their economies, the potential benefits of stablecoin adoption are clear. By reducing the cost of transferring money, stablecoins can boost the financial well-being of millions of families. They can help migrant workers keep more of their earnings and send more money home to those who depend on it.

Moreover, the global economy could benefit from the rise of stablecoins as well. By creating a more efficient and cost-effective remittance system, stablecoins could drive greater financial inclusion, particularly in developing countries where access to traditional banking services is limited. This could lead to increased savings, investments, and economic development in these regions.

Donald Trump’s Remittance Tax and the Urgency for Change

The urgency for stablecoin adoption is further amplified by recent political changes, such as the 1% remittance tax announced by former U.S. President Donald Trump. This tax could significantly increase the cost of sending money home, making it even more critical for migrants to seek cheaper and more efficient ways to transfer funds. Stablecoins offer a solution that could mitigate the impact of this new tax, enabling workers to continue supporting their families without losing a significant portion of their earnings to transaction fees.

As remittance fees continue to burden migrant workers and their families, stablecoins present a powerful opportunity to break free from the high costs of traditional transfer services. By offering a more affordable, faster, and flexible solution, stablecoins could help unlock the full potential of global remittances and bring financial relief to millions of people.

The Future of Remittances with Stablecoins

Looking ahead, the future of global remittances could be transformed by stablecoins. The technology behind stablecoins, such as blockchain, provides a secure and transparent way to process transactions, making it an ideal solution for the remittance industry. As more countries and migrants adopt stablecoins, the financial landscape will continue to evolve, creating a more efficient and accessible system for sending money globally.

Governments, financial institutions, and technology companies will need to collaborate to ensure that the transition to stablecoins is smooth and secure. Regulatory frameworks will need to be established to ensure that stablecoins are used responsibly and safely. However, with the potential savings and benefits for migrant workers and their families, stablecoins represent a step forward in creating a more equitable and efficient global financial system.

Stablecoins as a Lifeline for Migrant Workers

In conclusion, stablecoins are set to revolutionise the remittance industry, offering an affordable, fast, and secure alternative to traditional transfer methods. By reducing fees and increasing efficiency, stablecoins can save migrant workers and their families billions of dollars each year. With the global remittance market continuing to grow, the adoption of stablecoins could help millions of people improve their financial well-being and create new opportunities for economic development.

For countries like India, Mexico, and China, stablecoins offer a chance to save billions in transfer fees and put that money back into the hands of those who need it most. As the world moves towards a digital financial future, stablecoins are emerging as the key to unlocking a more equitable and efficient global remittance system.

Source: Rizon