A few months ago, I had to send money from India to Chile for a close friend who was stuck in Santiago and urgently needed funds. I assumed the process would be smooth, fast, and hassle-free — after all, we live in 2025. Technology has advanced, payments are instant, and banks have mobile apps for everything. How hard could it be to send money halfway across the world?
It turns out, harder than I thought. That day became a turning point in how I view our traditional banking system vs the new-age crypto ecosystem.
The Traditional Bank Transfer Experience – Slow and Costly
My first instinct was to walk into my trusted bank branch. I explained the situation to the officer, and they handed me a checklist of things I’d need: the recipient’s full name, address, bank name, branch details, account number, SWIFT/BIC code, the purpose of remittance as per RBI guidelines, and of course, my PAN card for compliance.
After filling out the forms, signing declarations, and double-checking every digit of the SWIFT code, I thought I was done. But the real journey of my money had only just begun. First, the bank ran a compliance check to verify my KYC and the purpose of the transfer. That took a few hours. Then, the money was sent through the SWIFT network, a system created in the 1970s to facilitate cross-border payments. Since my bank in India had no direct partnership with the recipient’s bank in Chile, the transfer went through multiple intermediary banks, most likely in the US, to settle the funds.
On top of that, currency conversion wasn’t direct. My Indian Rupees first converted to US Dollars, then finally to Chilean Pesos (CLP). Each step meant more delays and more fees. Finally, the Chilean bank had to process and credit the funds locally.
By the time my friend actually received the money, four full working days had passed. And the cost? Between bank charges, SWIFT fees, intermediary cuts, and exchange rate loss, I ended up paying nearly ₹3,000 in total fees on a ₹50,000 transfer.
What shocked me most was how outdated the system still is — it shuts down for weekends, public holidays, and time zone mismatches. If I had initiated the transfer on a Friday evening, my friend might not have seen the funds until the following Wednesday.
Discovering the Crypto Alternative – A 12-Minute Transfer
A few months later, I found myself in a similar situation. This time, instead of walking into a bank, I decided to try something different — crypto. I’d been reading about blockchain payments for a while but had never used them for an international transfer.
Here’s what I did: I bought USDT (Tether) on a P2P (peer-to-peer) crypto trading platform in India. My friend in Chile had a crypto wallet, so I simply sent the USDT directly to her address. Once she received it, she used her local crypto exchange to convert it into Chilean Pesos and withdrew it into her bank account.
The entire process took 12 minutes from start to finish. There were no intermediary banks, no weekends, no currency conversion delays. The fee? Less than ₹100, which included the blockchain network fee and a small conversion charge.
It was my first realisation that crypto is not just about investment — it’s a financial tool that can solve real-world problems.
Why the Gap Is So Huge
Traditional banks operate on a centralized model, which means every transaction goes through a chain of approvals and intermediaries. The SWIFT network, which most banks still use for cross-border transfers, was designed more than 50 years ago. It’s reliable, but it’s slow and expensive because each middleman takes time and money to process a transaction.
Crypto, on the other hand, runs on decentralized blockchain networks. This means two people can send value directly to each other, without a bank in between, 24/7, across borders. The transaction is verified by the blockchain itself in minutes, regardless of where you are in the world.
But Crypto Isn’t Perfect
While my crypto experience was lightning-fast, it’s not without challenges.
Firstly, both sender and receiver need to understand how wallets, exchanges, and private keys work. There’s also the question of volatility — if you use coins like Bitcoin or Ethereum, the value can fluctuate before the receiver converts it to their local currency. That’s why I used stablecoins like USDT, which are pegged to the US Dollar and avoid sudden price swings.
Finally, regulations can vary from country to country. In India, crypto is taxed, and in some countries, it’s heavily restricted. You have to be aware of the legal framework before making such transfers.
My Personal Conclusion
That first four-day bank transfer taught me patience. That 12-minute crypto transfer taught me possibility.
Banks are still operating on a 100-year-old model — limited working hours, centralized approval systems, slow settlements, and multiple intermediaries. Crypto has shown me that instant, low-cost, borderless transfers are possible today.
If you’re sending money from India to Chile, here’s my take:
- For urgent, low-fee transfers — stablecoin crypto like USDT or USDC is unbeatable.
- For official purposes or non-crypto users — traditional banks still have their place, but expect delays and higher fees.
In my eyes, crypto isn’t just the future — it’s the present. The only question is, how long will it take for the rest of the world to catch up?
