Remittance Firm TransferGo Adds Support for 5 Cryptos, CEO Says They’re Here to Stay

  • Remittance firm TransferGo is adding support for five cryptocurrencies, including BTC, BCH, and ETH.
  • The firm's CEO revealed he believes cryptocurrencies are here to stay and that TransferGo as a long-term vision for cryptos.

Daumantas Dvilinskas, the founder and chief executive officer of remittance firm TransferGo, recently revealed the company launched a cryptocurrency trading facility, to allow users to buy and sell five cryptocurrencies on its platform.

Speaking to Bloomberg, Dvilinskas revealed the move was a response to customer demand, as TransfeerGo found that users who sent family members money through its platform were interested in using cryptocurrencies to do so.

As such, the remittance company added support for five cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Ripple’s XRP, and Litecoin. He said:

We’ve launched this cryptocurrency trading facility in response to demand from our user base … our innovation is driven by empathy for our customers and our focus is wherever there’s a point of friction for them.

Daumantas Dvilinskas

He touted cryptocurrencies are a “fair, transparent, and convenient solution” for its clients. Initially, users won’t be able to send cryptos to their friends and family, but will instead have a “very convenient” way to buy them for themselves through TransferGo’s app.

When asked if this was a “clear bet” on whether cryptocurrencies are here to stay, Dvilinskas noted the company has a “very long-term perspective” on cryptos, after seeing them go through multiple waves. Conceding they’re here to stay, he claimed that, as a platform, the company wants to give its customers access to the market.

The CEO of the UK-based company further revealed people in Europe are looking to use cryptos to send money to developing nations. As CryptoGlobe covered, the cryptocurrency community, through charitable projects like eatBCH, has been sending funds to countries like Venezuela and Zimbabwe.

To TransferGo, a company with over 650,000 users growing 100% year-over-year, blockchain technology is “very exciting,” presumably because of its potential. Notably, its move comes shortly after payments service Skrill added cryptocurrency buy and sell options to its platform.

These join a growing number of financial services providers entering the cryptocurrency ecosystem. This year, zero-fee trading app Robinhood launched Robinhood Crypto, and is expanding it throughout the US. Square’s Cash app, headed by Twitter CEO Jack Dorsey, also started offering bitcoin buy and sell options, which as of May netted it $200,000

Chinese Yuan 'Inversely Correlated' with Bitcoin, Amidst US-China Trade Wars

Since January 2018, China and the US have been involved in an intense trade war in which both countries have significantly increased tariffs on imported goods and services.

Due partly to the rising tension between the two countries, the Chinese yuan (CNY) has been losing value against the USD. During the same time period, the price of bitcoin (BTC) and other major cryptoassets has been surging.

As noted by the South China Morning Post (SCMP), the value of BTC, the world’s most dominant cryptocurrency, increased by 26.5% to $7,878 during the time period from May 5 to May 17. Notably, US President Donald Trump had announced on May 5 that he would further increase tariffs on goods imported from mainland China.

Chinese Yuan Weakens as Nation’s Government Responds to Increased Tariffs

The SCMP pointed out that the yuan dropped to its lowest level since the past six months after the Chinese government responded to Trump administration’s decision to impose higher tariffs on China.

Commenting on the price fluctuations of both the yuan and bitcoin, Garrick Hileman, a Macroeconomics Researcher at London School of Economics (LSE) and Head of Research at Blockchain.com, remarked:

We are observing a strong inverse correlation between the [Renminbi] RMB’s value and bitcoin, meaning that recent RMB declines over trade tensions have been closely matched by increases in the value of bitcoin.

“Correlation Does Not Necessarily Equal Causation”

Hileman also mentioned that we “cannot be 100% certain” that the bitcoin price has been increasing due to heightened concerns regarding trade tensions and the corresponding decline in the value of the yuan. The blockchain researcher stated:

Trade tensions and declines in the RMB’s exchange rate as correlation does not necessarily equal causation.

Hileman, who earned his Phd from LSE, revealed:

This is not the first time we’ve seen significant increases in the value of bitcoin taking place alongside yuan concerns.

He added that there’s “growing recognition of bitcoin as ‘digital gold’ and it being used as a hedge against various macroeconomic risks.”

“This Year, the Narrative Is Bitcoin, Bitcoin, Bitcoin”

According to the SCMP, bitcoin’s price may have surged recently due to the generally positive remarks made about it at the Consensus 2019 conference.

Meltem Demirors, the Chief Strategy Officer at CoinShares, a crypto treasury management firm, has also confirmed recently that the narrative this year has been mostly about Bitcoin. Demirors revealed that both institutions and retail investors are “feeling good” and are “more confident” about the long-term potential of Bitcoin and the evolving ecosystem that supports it.