High transmission fees for remittances sent through traditional channels sap a large portion of potential development impact from what is one of the largest sources of development capital in the Global South. Such fees deprive developing economies and families from millions, if not billions, of development dollars. This Note will consider whether cryptocurrencies can be part of the solution to this problem. Cryptocurrencies are unlikely to provide a comprehensive solution to the high cost of remittances, mainly due to crypto’s high financial and knowledge-based barriers to entry for both senders and recipients, as well as its general price instability. Governments of remittance- dependent countries should instead focus on facilitating the inflow of remittances by reducing transmission costs and by promoting their citizens’ access to banks and credit.

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