Bitcoin is often pitched as a cheaper alternative to Western Union or Wise for sending money internationally.
“The advantage of using Bitcoin in El Salvador is that it’s much cheaper and faster to send remittances.”
— El Salvador President Nayib Bukele (Reuters, 2021)
Let’s see how true that is — using the most common real-world remittance path:
Sending $100 from the U.S. to Mexico, where the U.S. sends the most remittances.
🔵 Remittance Path (Bitcoin)
- Buy BTC on Coinbase (U.S.)
- Send BTC on-chain to Binance (Mexico)
- Sell BTC for MXN via Binance P2P
📋 Step-by-Step BTC Cost Breakdown
| Step | Fee (%) | Cost ($) |
|---|---|---|
| Buy BTC on Coinbase | ~0.6% | $0.60 |
| BTC withdrawal fee (Coinbase) | flat | ~$3.00 |
| BTC network fee (on-chain) | flat | ~$1.50 |
| Sell BTC via Binance P2P (spread) | ~2.1% | $2.10 |
| Total | — | $7.20 |
| Effective Cost | — | 7.2% |
🔗 P2P spread source: p2p.army
🏦 Traditional Comparison: Wise (USD → MXN)
Wise provides full transparency for sending USD to MXN, including:
- Uses mid-market exchange rate (no FX markup)
- ~1.3% total fee (includes transfer + conversion)
- Fee example for $100: $1.27
| Step | Fee |
|---|---|
| Transfer fee | $1.27 |
| FX rate markup | $0.00 |
| Total cost | $1.27 (1.3%) |
🔗 Wise calculator: wise.com
📊 Final Cost Comparison
| Method | Total Fee | Notes |
|---|---|---|
| Wise | 1.3% | Bank-to-bank, transparent |
| Bitcoin (on-chain) | 7.2% | On-chain + exchange spread |
🧠 Final Thought
Even when using some of the best-known exchanges on both ends, Bitcoin remittances still cost 5× more than Wise — with more steps, longer wait times, and zero buyer protection.
If Bitcoin is a “better remittance tool,”
why is it more expensive, more complex, and less reliable than existing options?