bitcoin for cross border payments and remittance

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