Date post: | 19-Feb-2017 |
Category: |
Technology |
Upload: | blockchain-conferences |
View: | 245 times |
Download: | 0 times |
Bitcoin for cross border payments
and remittance 19 may 2016
Prepared by George Basiladze, founder of
Where are they spending all these bitcoins?
0
50,000
100,000
150,000
200,000
250,000
300,000
BITCOIN NETWORK IS BOOMING
NODES DISTRIBUTION
NODES DISTRIBUTION
TRENDS
Growing Interest to bitcoin as savings mechanism from developing countries to escape inflation of local currencies. Booming market of local bitcoin exchangers with local payment options. No real collaboration between exchangers and exchanges.
INTERNET PENETRATION
INTERNET PENETRATION
TRENDS
Internet penetration will boost bitcoin adoption and use. Tough capital controls will drive the interest towards bitcoins as a payment mechanism. Excellent opportunity for remittance on top of bitcoin.
PAYMENTS AND SETTLEMENT
User 2
Instant buy Instant sell
Instant buy
User 1
Instant sell
On-ramp local operator Off-ramp local operator
COMPETITION
Transaction fee £6.99 £5 £5 £1 Exchnage rate 66.0780 66.4151 66.9191 66.1515 Total receive 6,607.8 6,641.5 6,691.9 6,549.0
FX markup 1.56% 1.05% 0.29% 1.45% Total fees 8.55% 6.05% 5.29% 2.45%
PROBLEM
Users have no seek local buying services and many of them lack reputation. Users have to educate their counterpart on how to use different unlinked services. Full bid/ask spread is paid. On top that, price volatility can kill savings. The whole process can be confusing and messed. Uncertain regulatory framework.
BITCOIN REMITTANCE ASSOCIATION
Combining several on and off ramp services in a bundled solution. Fee generation/split. No central entity required, only software. Will cost less than 1% in total fees. Will save millions in case the right partners are found.
WHAT ARE THE COSTS
Market making
Local payments
Technology
Compliance
TO DO?
Harmonized API platform. Same compliance/AML/KYC standards. Joint efforts in marketing. Economies of scale. More integrations and remittance corridors.
THANK YOU