Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Entrepreneurs, Start-ups, Small Businesses
Detroit to Accept Crypto for Taxes with PayPal
Innovation | Nov 7, 2024
Image courtesy of Freepik
Detroit Partners With PayPal to Accept Cryptocurrency for Tax Payments
Detroit just announced that starting from mid-2025, residents and local businesses will be able to use cryptocurrency to pay taxes and city fees. This makes Detroit the largest U.S. city to adopt crypto payments for government services, a big leap forward for digital finance transactions. The city is partnering with PayPal to manage these payments with the goal of bringing a modern, flexible option to handling finances, and a tech and innovation boost to the city.
See: How Fintechs Are Tackling Financial Inclusion in Canada
Detroit’s new approach gives residents who already own digital currency a direct way to handle taxes and fees, and hopes to make payments easier and more open to everyone. Crypto payments offer a way for people without traditional bank access to settle city expenses with a modern alternative. The city’s choice to accept crypto also shows its interest in attracting new businesses and skilled workers.
PayPal Partnership
Global digital payment giant, PayPal, will oversee Detroit’s cryptocurrency transactions. The partnership gives residents the comfort of using a familiar branded platform, making it easier to manage their digital payments without added confusion or worries about security or a newly run service by the local government.
Implications
Detroit’s move to accept crypto payments might inspire other cities to do the same, especially as blockchain technology becomes more common in government services. The city is also inviting tech experts and blockchain developers to pitch ideas for using blockchain in other areas of public service, looking to attract fresh ideas that could be valuable for Detroit’s future.
See: PayPal Introduces Confidential Stablecoin Transfers
Conclusion
This decision signals to residents, businesses, and the tech world that Detroit is open to fresh ideas for modernizing government services. Fingers crossed that the initiative is successful as it could lead to using crypto in government services throughout North America.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Investing in the Future of AI and Blockchain
Investing | Nov 7, 2024
Image courtesy of Freepik AI
Investing in the Future of Autonomous Digital Economies
Coinbase Ventures recently shared insights into how AI and blockchain are creating a new digital economy where autonomous AI agents operate on decentralized networks. This convergence of technologies leverages AI’s analytical power and blockchain’s transparent, secure infrastructure that are powering innovative applications across finance, data, and autonomous transactions. Mashed together they promise a future where AI agents can perform secure and independent actions that will change digital and economic interactions forever.
Layers in the AI Meets Blockchain Stack
AI needs a lot of computing power to run complex models. Networks like Gensyn make this easier by letting people access extra GPU power, helping to cut costs and improve availability for AI tasks. "Machine intelligence will soon take over humanity’s role in knowledge-keeping and creation."
Data is the fuel for AI growth. Platforms like Vana allow secure data sharing (Data DAOs), giving AI systems the data they need while keeping user privacy protected.
See: California DMV Digitizes 42M Car Titles on Avalanche Blockchain
Middleware makes it possible to securely deploy and manage AI models on a decentralized network. Nous is an example of a company working on helping AI run independently on blockchain systems.
Applications are the tools that users interact with directly, showcasing what AI and blockchain can do together. Examples include Taoshi for AI-driven trading and Worldcoin for decentralized identity.
Promising Opportunities for Investors
1. Foundational Infrastructure
Platforms like Akash for computing power and Ocean Protocol for data access are helping to make AI tools more accessible and affordable. By focusing on this kind of infrastructure, you’re investing in the core building blocks and resources that will support many future AI applications long term.
2. The Agentic Web
The “Agentic Web” is an emerging concept where AI agents handle transactions, manage assets, and complete tasks autonomously (all on their own). These agents are likely to use the latest crypto payment rails that are flexible and low cost.
See: How Real-Time Agentic AI Will Boost Fintechs
Coinbase Wallet is specifically designed for these AI agents that will operate/manage/pay/transact in their own digital economies. AI agents are bound to play a big role in decentralized networks.
3. Generative AI for On-Chain Experiences
Generative AI is making it easier for people to use blockchain, such as creating smart contracts from a simple request. Companies like Replit are leading in this area, letting users type requests in everyday language, which the AI then turns into code that can be executed on the blockchain. Investing in generative AI for blockchain will help makes blockchain accessible to everyone (not just tech experts), and in doing so people will create a wide range of new use cases and value.
4. Tokenized Asset Opportunities
Tokenization allows investors to own small portions of an asset that benefit from blockchain's liquidity and trading without needing a large upfront investment. Companies such as Prime Intellect for GPUs, or Masa for Data are a couple of examples.
Outlook
The convergence of AI and blockchain is is a gateway to new, accessible, and intelligent digital economies where independent agents are transforming how people and businesses interact with the digital world. These are the building blocks of tomorrow's digital society (and just the beginning) as the possibilities are soon no longer limited to merely human imaginations.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Reversing Canada’s Digital Economy Productivity Decline
Productivity | Nov 5, 2024
AI image
Modernizing Canada's Productivity Strategy for a Digital Economy
Jim Balsillie, co-founder of the Council of Canadian Innovators has dropped another OpEd on Canada's elephant in the room or the 'P-word' for productivity which continues to decline as living costs continue to rise. As many think tanks have attempted to describe including NCFA, Balsillie doubles down in the article that the root of Canada's productivity problems is from Canada relying on outdated economic models that no longer apply to a knowledge-based world. One where intangible assets, data, intellectual property and algorithms that cross borders, have higher leverage value compared to outdated thinking like investing in more machinery or pushing for greater local competition.
See: Can Canada Harvest the Next Wave of Productivity Growth?
He argues that in today’s global market, value and competitive advantage come from controlling data and deploying innovative algorithms, and if Canada wants to genuinely improve it's productivity, it needs policies that support the modern drivers of economic success. As his oped points out, there have been no shortage of reports and think tanks commenting on Canada's productivity and innovation woes. Many quickly talk about Canada's intellectual property and commercialization gap.
If you want a solid intro to 'intangible assets' there are several great reports such as: [Report] A New North Star: Canadian Competitiveness in an Intangibles Economy (Apr 2019) that describe the issues in a Canadian context by Sean Speer and Robert Asselin. This article contemplates some practical and innovative approaches to help improve Canada's productivity decline without relying on traditional frameworks.
Moving Beyond Traditional Frameworks
1. Develop National AI Computing Infrastructure
Build a dedicated, publicly accessible AI cloud infrastructure that would give small businesses, startups, and researchers access to powerful computing resources, making it easier for them to develop advanced AI solutions. Such dedicated resources would be like investing in roads or bridges for the good of all, and would accelerate innovation without companies incurring massive costs on AI equipment and setup.
2. Create Data Trusts (for specific industries or purposes)
Data is the new oil in today's economy but its value is capped as it's often locked away in silos. Canada could create data trusts with pools of high quality (cleaned, tagged) of anonymized data for specific verticals like healthcare, agriculture, or logistics. By sharing data within a secure and regulated framework, companies of all sizes could gain valuable insights and work to drive productivity and innovation.
See: How to Build Canada’s Competitiveness Amidst the Rise of an Intangibles Economy and Greater Geopolitical Complexity
3. Encourage Collaborative AI and Automation
Instead of competing for tech resources and duplicating many of the same costs, Canada could incentivize companies to collaborate on AI and automation development through shared AI innovation hubs to create tools and AI driven agents that will improve productivity.
4. Invest in Skills and Forward Looking Education
Canadian workers need flexible skills to adapt to technology-driven changes. Investing in a skills based educational model focused in areas like digital literacy, systems thinking, and AI fluency would help prepare workers to thrive in a knowledge based economy. Online platforms, companies and universities need to keep the workforce agile and savvy to stay ahead. Government could co-invest in micro programs to support.
5. Use AI to Streamline Government
Government agencies could use predictive analytics and AI to streamline processes, speeding up approvals in areas like healthcare, infrastructure, and environmental compliance. Decisions would be data-driven and made much faster resulting in a more efficient and productive government that could support, enable and see projects including national ones to the finish line more confidently.
6. Collaborative Digital Innovation Sandboxes
Create several “innovation sandboxes” for specific industries where Canadian businesses could test digital products and new models in a smarter, relaxed and more agile regulatory environment.
See: IP Box: Would a special IP income tax rate boost Canada’s flagging innovation?
Industry and government including regulators could share data insights and work to help build and scale Canadian projects and productivity enhancing technologies faster.
Shaping Canada’s Future in a Knowledge Economy
All public and private hands on deck should work to address Canada's productivity challenge which obviously requires a major departure from traditional and outdated frameworks. By focusing on data, collaborative frameworks, deep tech and collaborative approaches towards innovation, Canada can better align its economy and policies with a national productivity strategy suitable for the 21st century.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canada’s SMBs Deserve Better Banking. Lessons from US Fintechs
SMB Banking | Nov 4, 2024
Image: Freepik/wavebreakmedia micro
Survey Reveals Need for Flexible Banking Solutions to Support Canadian SMBs
Canada’s small and medium-sized businesses (SMBs) are a backbone of the economy. Canada ISED publication shows that small businesses (<500 employees) employed 52.12% of the work force creating 9.29 million jobs in the country. Even the smallest businesses with <100 employees hire 38.71% of all employed. These businesses nurture innovation, create jobs and growth, and strengthen communities but a recent survey of 700 Canadian SMBs by Canadian fintech, Float, highlights that high expenses and fees, tough access to credit, and outdated financial systems make it very challenging for SMBs to be productive and thrive.
Simply put, many of these businesses aren’t getting the support they need from traditional banks because Canada's financial system isn't designed for SMBs. Instead, it’s set up to support big banks and large corporations that have steady cash flows, solid credit histories, and plenty of resources. Traditional banking products work well for these bigger players because they focus on stability, low risk, and lengthy, careful approval processes.
Snapshot of SMB Challenges from Survey Responses
While it's not meant to be easy running a small business, below are select data points based on survey responses that point to the lack of financial infrastructure challenges for SMBs specifically.
See: Open Banking: Revolutionizing Financial Data Sharing
1. Financial Barriers (many SMBs experience serious financial obstacles)
- Approx 40% of business owners report that rising operating costs are their biggest concern, making it difficult to manage expenses and maintain profitability.
- Almost 30% of SMBs struggle to secure loans or credit due to strict lending requirements from banks. This lack of access limits their ability manage cash flows or invest in growth.
- Many participants are concerned that increasing interest rates and fees are making borrowing more expensive, which adds to the financial strain.
2. Inefficient Processes
- Many SMB owners report spending up to 40 hours a month managing payments and handling paperwork, diverting their attention from growing their businesses.
- More than half of SMBs feel that traditional banks do not understand their business or its unique needs. They express dissatisfaction with an outdated banking system:
- Inadequate customer service
- Low yields on cash balances
- Unsatisfactory interest rates on business savings accounts
- Lack of attractive cashback or rewards programs
Image: Float Financial (SMB Survey Results)
U.S. Banking Products that Canada Could Adopt to Better Serve SMBs
Given that Canadian SMBs feel underserved and supported. Let's take a closer look at just a few popular products available in the US and how similar solutions could benefit Canadian SMBs, assuming banks or fintechs could step in/up with similar support.
See: The Case for Better Banking Options for Canadian SMEs
1. Revenue-based financing (RBF) is a flexible funding model available to SMBs in the U.S. that allows them to repay loans as a percentage of their future revenue. This approach is a great fit for early-stage companies with variable cash flow since it matches and scales repayments with revenue generated. Canadian fintech, Clearbanc (now Clearco), originally popularized RBF in both Canada and the U.S.. Canadian banks largely offer traditional standard loans with fixed repayments making it more difficult for SMBs to manage cash flow during slower months.
2. Business Credit Cards Without Personal Guarantees Companies like Brex and Divvy in the U.S. provide business credit cards that don’t require a personal guarantee or personal credit check, therefore helping entrepreneurs build business credit independently of their personal credit. These business cards often include expense management software and other credit building tools. Most Canadian banks still require a personal guarantee on business credit cards which can deter new business owners or hurt those with limited personal credit history.
3. Invoice Factoring allows businesses to receive early payment on outstanding invoices to be collected which is incredibly useful for managing cash flow without accumulating debt. Fundbox provides this for SMBs in the U.S.. In Canada, there are a number of fintechs offering invoice factoring services like FundThrough but traditional banks don't generally provide this option leaving SMBs with limited cash flow solutions other than debt.
See: The Role of Digital Banking in Supporting SMEs and Startups
4. Quick Access to Capital can help SMB capital solutions when they need it most. In the U.S. digital lenders such as BlueVine offer quick access to business lines of credit by using real time bank transaction data instead of traditional credit scores or collateral. While in Canada, banks typically have longer approval processes making it more difficult for SMBs to access cash quickly.
Looking Ahead
It’s time for Canada’s financial institutions and policymakers to move faster on Open Banking in Canada and other policies to provide better financial infrastructure for small businesses, or risk further decline in productivity.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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BoC Opens Registration for Retail Payment Service Providers
Retail Payments Regulation | Nov 1, 2024
Image: Freepik
🚀 Registration Now Open for Retail Payment Service Providers
The Bank of Canada has officially launched the registration process and is now accepting registrations from payment service providers (PSPs) as part of the new Retail Payment Activities Act. This rule requires all PSPs in Canada to register to make the country's retail payments safer, more dependable, and transparent. To comply, PSPs need to complete their registration on the PSP Connect portal by November 15, 2024.
- The updated regulations are in place to help PSPs manage risks and safeguard consumer funds with clear standards for compliance and accountability. PSPs are expected to follow specific guidelines to protect funds and operate effectively.
- To make this process easier, the Bank has provided step-by-step instructions, video guide, and dedicated support options for PSP Connect. This help ensures PSPs can successfully complete their registration and meet the requirements of the Act.
See: New Bank of Canada Case Scenarios for Retail Payments
- These changes fit into Canada’s larger plan to upgrade its payment systems. The goal is to create a secure, resilient and inclusive payment environment that adapts to new technologies.
📋 Next Steps for PSPs to Register
If you’re a PSP, here’s what you need to do to ensure compliance with the new Act:
- Create an Account on PSP Connect (Google chrome, Microsoft edge, Firefox). Access PSP Connect at https://rps.bankofcanada.ca/
- Complete and Save Your Registration Application. Fill in all required fields and upload necessary documents. You can save your progress and return if necessary.
- Submit Application and Pay the Registration Fee. Non-refundable registration fee of $2,500 Canadian (must be paid in full for your application to proceed)
See: Canada’s Retail Payments Boom: $11.9 Trillion Growing Fast
📞 Need Assistance?
If you have any questions or run into technical issues, here’s how to get support:
- Questions about the Registration Process: Email: rps-compliance@bank-banque-canada.ca
- Technical Issues with PSP Connect: Service Desk open Monday to Friday (7AM to 5PM Eastern)
- Free call North America: 1-888-882-8863
- Free call International: +800-782-27800
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Andressen’s Shoutout Boosts AI Powered VC Fund to $100M
AI VC Fund | Oct 31, 2024
Image of DAOs.fun website
Andreessen’s Shoutout Pushes AI-run VC Fund "ai16z" to Nearly $100M
An AI run venture fund "ai16z" sparked a wave of excitement in the tech and crypto worlds following a shoutout from Marc Andreessen. The fund’s market cap surged to nearly $100 million before stabilizing at approx $25 million at the time of writing. Daos.fun blends AI with community input (read: DAO) where users can setup their own funds and invest alongside algorithmic guidance.
- Daos.fun lets people set up their own crypto VC funds offering a leaderboard and community. ai16z was launched by an AI and is meant to mirror Marc Andreesen's investment moves. The fund stands out because it's basically run by artificial intelligence. Andreesen, one of the world's best known investors , noticed ai16z and give it a shoutout on social media driving the market cap up to $100 million.
See: Retail Investors to Drive Growth in Private Assets Under Management Expected to Reach $18.3 Trillion by 2027
- So how does it work? Well the fund’s AI takes suggestions from DAO members who come together to form a type of 'trust market' where top advisors/investors with a track record of providing successful tips gain more influence and weight in decision making.
- Daos.fun is a platform where users fund projects by buying tokens that they can redeem if the fund's market value rises. The platform is currently in beta but has garnished a lot of attention as it combines elements from popular meme coin sites like Pump.fun and combines it with a funding model.
Conclusion
While Daos.fund seems like a type of blockchain- based, tokenized crowdfunding model, the ai16z fund highlights how AI and decentralized finance approaches can mash together to transform project based liquidity and fund management. More AI funds will no doubt emerge and their impact on traditional venture capital and crypto investing may grow. Of course, investors should research legalities of participating in such models and accept that these investments are very high risk.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Reducing The Costs of Remittances
Almond FinTech | Howard Davidson | Oct 30, 2024
Image: Freepik/Creativeart
Remittances, the money sent home by migrants working abroad, have become a fundamental financial lifeline for emerging markets across the planet.
In 2023, the volume of global remittances reached a staggering $890 billion, significantly outpacing the current amount of foreign direct investment and official development assistance coming in. These payments now play an important role in supporting millions of families while also helping to stabilize economies in developing nations.
With international economic leaders meeting at the 2024 IMF-World Bank discussions, remittances and their impact will be a core component of their discussions. Their increasing importance to the global financial system calls for urgent attention, especially as countries look at ways to reduce the high costs of sending money across borders.
The Fundamental Role of Remittances in Emerging Markets
Remittances are a financial powerhouse for emerging markets, with $669 billion flowing into these economies in 2023 alone.
For many countries, they are more than just supplementary income—they’re lifelines. In nations like Tonga, Tajikistan, and Lebanon, remittances make up over 30% of their GDP, directly highlighting just how much these economies depend on funds sent by their citizens abroad.
Beyond providing basic household support, remittances play an essential role in helping to shore up national finances. They help countries fill gaps in current accounts and reduce fiscal deficits, especially for those with limited access to international capital markets.
Having a steady stream of capital coming in from overseas can provide some much-needed stability to developing economies under strain.
Macroeconomic Factors Influencing Remittance Flows
Remittance flows are closely tied to the economic health of more advanced economies like the U.S. and Europe.
When these regions experience strong GDP growth and healthy labor markets, migrant workers tend to send more money home, boosting remittance levels. However, when a recession hits, or inflation rises, the story changes completely.
Economic slowdowns in these countries often lead to lower incomes for migrants, which means less money is sent back to their families. During those tough times, remittance flows can shrink significantly, impacting both individual households and entire economies.
In fact, remittances now make up one-sixth of all global cross-border payments, illustrating just how vital they are to the greater global financial system.
The High Cost of Sending Remittances
Sending money across borders comes with a steep price tag for many migrants. On average, the cost of sending remittances globally is 6.35% of the total amount, which is well above the World Bank’s target of 3% and the G20’s goal of 5%, creating a significant burden for those who rely on these transfers.
The cost varies widely depending on the region, and in some cases, especially in certain cross-border corridors, fees can climb as high as 20% of the remitted amount. So, for every $100 that’s sent, a migrant may be spending as much as $20 on transaction fees alone, which is a significant loss for families already facing severe financial constraints.
These high fees severely limit the amount of money migrant households can actually use. Instead of saving or reinvesting in local economies, they lose a substantial portion of their income to transaction costs.
Reducing these costs isn’t just about convenience—it’s essential for the financial well-being of millions of households that depend on remittances as a key source of income.
Efforts to Reduce Remittance Costs
Reducing the already high cost of remittances has become a global priority for policymakers. Both the World Bank and G20 have set ambitious targets to lower fees, aiming for a 3% cost as part of sustainable development goals and a 5% cap within G20 initiatives—yet, meeting these goals still requires significant action to be taken.
Several existing models already show promise in helping to cut down on these costs. For example, Wise (formerly TransferWise) has successfully reduced fees by integrating nonbank services into the UK’s Faster Payments System. The move has directly demonstrated that including new participants in the payment ecosystem can drive down transaction costs.
Project Nexus is another innovative effort designed to connect domestic payment systems across borders. Through regulatory and technological alignment, Project Nexus aims to enhance interoperability between countries, enabling faster and more cost-effective cross-border transfers.
Fintech companies and the growing digitalization of remittance channels are also key to reducing these costs. Mobile payments and digital remittance platforms tend to offer much lower fees than traditional banks, providing more affordable options for migrant workers.
On top of this, retail digital assets, such as stablecoins or central bank digital currencies, could further decrease costs by streamlining the transfer process and minimizing currency conversion fees.
These growing technological advances represent real opportunities to ease the financial burden being placed on millions of migrant families.
The Current Barriers and Challenges to Cost Reduction
Despite efforts to lower remittance costs worldwide, some significant barriers still remain in place that are hampering progress. One key issue is that remittances often get overlooked in the broader development of cross-border payment systems.
Because these systems are typically built with domestic transactions in mind, remittance needs end up as an afterthought, which keeps fees high. Alongside this, an array of regulatory and technological barriers are also slowing progress.
Initiatives like Project Nexus still face several challenges in aligning regulations and building the necessary infrastructure. Without having seamless coordination between countries, scaling these kinds of projects quickly becomes difficult and costly.
Another major challenge is the current lack of focus on high-volume remittance corridors. For example, the U.S.-Mexico corridor is one of the largest in the world, yet it continues to see high fees and is plagued by inefficiencies.
Cutting down on costs in these key corridors could make a significant impact, but they haven’t received the type of attention they need from policymakers and financial institutions.
A Call to Action for Policymakers
Remittances are a vital lifeline for many emerging markets across the globe, but the high costs that come with sending them continue to weigh heavily on migrant families.
Reducing these fees is fundamental when it comes to improving their financial well-being and overall quality of life. International cooperation is essential here, and global institutions like the G20 and IMF need to prioritize systemic reforms in cross-border payment systems to make transfers faster, cheaper, and more efficient than before.
See: IMF Working on Global CBDC Platform to Revolutionize Global Remittances and Trade
Looking ahead, expanding digital solutions alongside streamlining existing regulations can provide long-term relief, allowing remittances to remain a reliable source of support for millions of households around the world.
About the Author
Howard Davidson is the CMO of Almond FinTech.
Almond FinTech is a B2B fintech company transforming cross-border payments by empowering financial institutions and their customers with the best possible rates and near-instant FX settlements across all corridors globally. With Almond technology, institutions can guarantee fast, affordable, and transparent cross-border transactions. Finally.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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