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CMA Final · Strategic Financial Management · Digital Finance

A startup, BlockPay, plans to settle cross-border remittances using a stablecoin. Traditional route cost is 4% of the amount. The stablecoin route costs a flat 0.5% plus Rs 150 per transfer. For a remittance of Rs 1,00,000, what is the saving from using the stablecoin route?

The traditional route costs Rs 4,000 and the stablecoin route costs Rs 650 (Rs 500 percentage fee plus Rs 150 flat fee). The saving is therefore Rs 3,350 per remittance on Rs 1,00,000.

  1. ARs 3,350Correct
  2. BRs 3,500
  3. CRs 3,000
  4. DRs 4,000

Explanation

Traditional cost = 4% x 1,00,000 = Rs 4,000. Stablecoin cost = 0.5% x 1,00,000 + 150 = 500 + 150 = Rs 650. Saving = 4,000 - 650 = Rs 3,350. Rs 3,500 ignores the flat fee.

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