Re:The endless search for a crypto use case
by anonymoushn on Tuesday August 02, 2022 @02:56PM
(#32322829)
> It seems like the majority of the cost savings is due to skipping outsourcing and a company that pays local taxes and insurance.
None of the cost savings are related to local taxes and insurance since they still need to pay for these things. ~15% is what's charged collectively by the outsourcing company, their bank, and their local partner. I agree that they provide a valuable service, but it's not clear to me that the service is worth 15% of the otherwise-gross cost of employing someone. One thing they could do to convince me it is worth more would be to transmit the funds promptly to the recipient.
> The only times I've transferred dollars -> crypto -> transfer -> crypto -> foreign currency the costs were much higher than 3%, not to mention there was far more risk because you couldn't reverse the transactions if you fat fingers an amount or a recipient.
Some centralized crypto exchanges currently have pretty competitive forex rates. You'd basically have to go to IBKR to do better.
None of the cost savings are related to local taxes and insurance since they still need to pay for these things. ~15% is what's charged collectively by the outsourcing company, their bank, and their local partner. I agree that they provide a valuable service, but it's not clear to me that the service is worth 15% of the otherwise-gross cost of employing someone. One thing they could do to convince me it is worth more would be to transmit the funds promptly to the recipient.
> The only times I've transferred dollars -> crypto -> transfer -> crypto -> foreign currency the costs were much higher than 3%, not to mention there was far more risk because you couldn't reverse the transactions if you fat fingers an amount or a recipient.
Some centralized crypto exchanges currently have pretty competitive forex rates. You'd basically have to go to IBKR to do better.