I use Bitcoin to transfer money to my family overseas all the time (literally, at least once a week). I buy them through either Virtex or Coinbase, then transfer them to a localbitcoins.com contact in the city where my family lives and he hands them local currency. I used to use Western Union, but between the ridiculous WU fees and the even more ridiculous exchange rate controls in the country my family is in, I was losing over 40% of the original amount. With Bitcoin the transfer is instantaneous and I lose less than a fraction of 1%.

So how is this not working as a money transfer again?