Global Remittances and Space-Based Cryptocurrencies: A Transformational Opportunity for the Post-2030 Agenda

Abstract

Remittance flows constitute a significant source of financing in support of global development efforts as part of the 2030 Agenda for Sustainable Development and beyond. Annually, remittances roughly total three times the amount of official development assistance from developed countries to developing countries and prove a more reliable and predictable source of resources as compared to private capital flows measured by foreign direct investment. However, the high costs associated with sending remittances limit their potential, resulting in tens of billions lost each year to excessive fees. New trends in the space industry, particularly with the growth of the nano- and microsatellite industry and launch service providers dedicated to this market segment, promise new potential for contributing toward development efforts. Coupled with a rising acceptance of cryptocurrencies as a legitimate means of transacting and storing wealth, space-based cryptocurrencies may prove a solution to remedying the high transaction costs associated with remittances. The introduction of space-based cryptocurrencies offers significant potential for the global community in its development efforts, but also poses questions for the post-2030 agenda in how risks associated with these new technologies, especially around regulatory compliance, will be addressed.