Bitcoin has been identified as capable of providing a feasible solution to transfer money 'home' safely in a cost-effective manner for many, including for migrant workers. Notwithstanding the potential perks (efficiency, low cost, absence of foreign exchange problems), there are many pitfalls for potential users of bitcoin for this purpose, given the general absence of regulatory protections. Providing protection for users of bitcoin for this purpose is complicated by broader regulatory concerns such as money-laundering and terrorism-financing. This paper will point to the perks and pitfalls of the use of Bitcoin in remittance and concludes that it has rich potential in that arena, and that the regulatory framework for the use of Bitcoin in the remittance sector provides moderate protection for Australian users.
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|Published - Aug 2016