As we can see most of the developing nations economy depend largely on remittance from citizens working abroad due to very low chance of getting stable job in their country and in remittance they usually loss more than 10% of total amount which is really painful experience for workers. Government can focus on establishing bitcoin based remittance service where fee will be not more than 1-2% due to no central body like swift transfer to take high fees in middle.
There are a few posts in this thread (before and after the post I quoted) claiming that Bitcoin could help transfer funds to such countries given its low fees. I don't challenge the point that Bitcoin fees themselves are really low. But whoever claims that remitting money with Bitcoin could actually work out should keep in mind two things. First, you should convert the fiat you earned in the country of residence to bitcoins. If you work in Europe or in the US, this is usually not a big problem, though you will still have to pay for just moving your funds to a Bitcoin exchange (a few percent typically) and then pay trading fees (around 0.2 percent). Second, you, or your family, should be able to convert bitcoins you sent back to local currency somehow, and here you will have to pay the same fees all over again, and they may turn out to be rather hefty...
All in all, it may not actually make any sense to use Bitcoin for the remittance of fiat
You have the point there, very nice explanation. If for remittance purpose only you really have to pay but the fees you elaborated and when you compare it to the bank my guess is bank has a cheaper rate but not all countries have banks that you can use to transfer, most of the poor countries they have their the remittance center which charge like 10% of the total remittance.
This sharks are making money from the poor taking advantage their the less competition in the are, or there could be a monopoly.
