Crypto exchanges work quite differently from traditional banking system and money exchange organizations like MoneyGram, Western Union and other similar programs that use banking system.
The problem is that when you send money using any traditional money exchange program, it goes from like more than 4 different banks & organizations and each of them take their cut making a total amount of fee that is being charged form senders & receivers of that particular transaction. And those fees are insanely high, up to 20%.
Here comes cryptocurrencies that are sent and received peer-to-peer without involving any centralized organization or banks and the network fee is very low. You can send from pennies to millions of dollars and fee would be something like 20 cents or so.
Governments and banks are afraid of this technology and that’s why trying to stop it. Actually, they can’t stop it so they try to restrict people from using them and what not.
To be continued…