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Using Bitcoin for international money transfers

Bitcoin could one day offer a simple, safe and affordable way to send money across international borders.

In September 2015, Commonwealth Bank, Westpac, Barclays, Credit Suisse and J.P. Morgan participated in the international R3 project with Ripple Labs. The R3 project was focused on creating a distributed ledger technology that works in the same way as the ‘blockchain’ structure on which all Bitcoin transactions are based. The aim of the project was to help the banks transfer funds to one another at a lower cost.

Since then, the Australian Government has been trying to establish a framework to regulate Bitcoin and the cryptocurrency space. In the Federal Budget for 2022/2023, the government shared it would treat crypto as an investment asset that is subject to capital gains tax. Due to the fall of FTX, the Australian Government will also be looking to tighten legislation around licensing crypto exchanges to help safeguard customer funds.

But what sort of impact will Bitcoin have on global finance and will it one day represent a safe international transfer option? Let’s take a closer look.

What is Bitcoin?

Bitcoin is a digital currency that was established in 2008. Commonly referred to as the currency of the internet, it is based on a peer-to-peer network that facilitates payments. This alternative payment system removes the need for a centralised authority and instead uses a public ledger known as the ‘blockchain’. This contains all processed Bitcoin transactions and allows new transactions to be verified and a user’s wallet to calculate its spendable balance.

Just like any other currency, the value of Bitcoin is determined by supply and demand, and continues to fluctuate wildly in value. At the time of writing, 1 Bitcoin is worth roughly $43,000 Australian Dollars. But if you wind back the clock to November 2021, Bitcoin's price peaked at over $87,000 AUD. The dramatic decline is mainly due to the amount of leverage used to buy crypto assets and the rise in interest rates.

The impact of Bitcoin

In the early years, Bitcoin came in for criticism for making it possible to anonymously purchase illegal goods online. Its volatility, as demonstrated above, has also been criticised, while others have pointed to the lack of regulation as grounds for concern. It could lead to money laundering and even the financing of terrorism.

Every new technology is bound to attract its share of criticism. Despite its detractors, Bitcoin and stablecoins by international migrants from Philippines and India because it offers an affordable way to send money home to their families. Bitcoin’s benefits include protection against currency debasement and the ability to control your own money outside of the government.

Could bitcoin soon offer a safer and more effective way to transfer money around the world?

The involvement of Commonwealth Bank and Westpac in the R3 project shows that the banks are aware that Bitcoin offers plenty of potential benefits for digital commerce. “The development of the blockchain will certainly have a very interesting and potentially disruptive impact on financial services,” Westpac chief executive Brian Hartzer said at the time.

There are also hundreds of other open-source blockchain experiments underway around the world, as financial institutions search for ways to streamline and simplify payments infrastructure. With low fees on overseas transfers, fast processing of transactions and the ability to cut out the middle man, Bitcoin represents an exciting opportunity for international money transfers.

However, any transition to Bitcoin payments among banks and other established financial institutions is likely to be a slow one. Not only is much of the technology still in development, but regulators in Australia and around the world are still catching up with the many implications of digital currencies.

In the meantime, the way we send money overseas will remain the same. While there is the option of sending a telegraphic transfer via your bank, specialist online money transfer companies still offer a cost-effective solution. It offers better exchange rates and charges minimal transaction fees compared to the banks, so it's definitely worth considering when you need to transfer money abroad.

Compare international money transfer providers

Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
1 - 25 of 25
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
TorFX
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000.
Xe Large Transfers
24 hours
$0
Xe has fast transfers with low fees and a range of foreign currency tools.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Send Payments
24 hours
$0

Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.
Revolut
Within minutes
$0
Send money with great rates and low fees in 30+ currencies.
Xe Money Transfers
Within minutes
$0
Xe has fast transfers with low fees and a range of foreign currency tools.
Instarem
Within minutes
From 0%
50% off first transaction fee from any country in APAC (outside India).
Minimum transfer of $250 and max transfer of $500,000
Wise (TransferWise)
Within minutes
From 0.43%
Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies.
TorFX
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000.
Remitly
Within minutes
From $0
Remitly has quick, affordable transfers around the world, with both express and economy options.
WorldRemit
Within minutes
From $0.99
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
Rocket Remit
Within minutes
From $0 to $5
Send money instantly to friends and family in over 45 countries using just your mobile number.
MoneyGram
Within minutes
From $1.99
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
SingX
Within minutes
From 0.5%
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
CurrencyFair
Within minutes
€3
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Send Payments
Send Payments
24 hours
$0
Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.
MasterRemit
Within minutes
From $0
Get your 1st and 2nd money transfer for free with promo codes FIRSTFREE and MASTERFINDER!.
Send money in minutes at competitive exchange rates to the Middle East, Africa and South Asia.
Western Union
Within minutes
From $0
Western Union sends money online to friends and family in 200+ countries around the world.
Qantas Business Money
Within minutes
$0
Limited time offer: Earn up to 125,000 bonus Qantas Points as a first-time converter. Ends 30 April 2024. Conversion limits and T&Cs apply.
Set up accounts in 11 different currencies and get rewarded for global business payments by earning Qantas Points.
Airwallex
Within minutes
$0
Streamline global payments in 60+ currencies. Send & receive securely in 150+ countries, with fast settlements & competitive rates. Simplify book-keeping & manage everything in one place.
TorFX Business Transfers
24 hours
$0
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.
OFX Business Transfers
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
WorldFirst
24 hours
From $0
Open bank accounts in Australia, the UK, US, Canada, Japan and Europe. Send and receive funds with zero fees for large sums, including same-currency supplier payments.
Send business
24 hours
$0

Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.
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