The history of remittances and how it has evolved.

Mohsen El-Sayed

February 17, 2023

Remittances, the transfer of money by a foreign worker to their home country, have a long and varied history. Throughout history, people have moved from one place to another in search of better economic opportunities, and have sent money back to their families and communities to support them.

The history of remittances can be traced back to ancient times, when people traveled across borders for trade, work, and other reasons. In ancient Rome, for example, soldiers and merchants sent money back to their families through a system of money changers and messengers. Similarly, in medieval Europe, merchants and traders sent money home through a system of hawala, which relied on trust and personal networks to transfer funds.

As international trade and migration increased in the 19th and 20th centuries, so did the need for more formal and efficient ways to send money across borders. This led to the development of new technologies and financial systems, such as the telegraph and the telephone, which made it possible to send money faster and more securely.

In the 1970s and 1980s, the rise of electronic banking and the development of new payment systems, such as SWIFT, made it even easier to send money across borders. This led to a rapid increase in the volume of remittances, with the World Bank estimating that global remittances reached $429 billion in 2018.

In recent years, the use of digital technologies, such as mobile money and blockchain, has further transformed the remittance industry. These technologies have made it possible for people to send money quickly and inexpensively, without the need for a bank account or government-issued identification.

However, despite the significant progress made in the remittance industry, there are still many challenges to be addressed. High fees, lack of transparency and limited access to remittance services in certain regions are still a major concern.

In conclusion, the history of remittances is a long one, dating back to ancient times. Throughout history, people have moved from one place to another in search of better economic opportunities, and have sent money back to their families and communities to support them. The remittance industry has evolved significantly over time, thanks to the development of new technologies, financial systems and digital technologies, however, it still faces challenges such as high fees, lack of transparency and limited access to remittance services in certain regions.

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The above article is providing an overview of the history of remittances and how it has evolved, it's mentioning how remittances have been around for centuries, dating back to ancient times, and how the remittance industry has evolved over