Steem Is Money
How Steem could Disrupt the $800 Billion Remittances Industry
Over the years there has been much talk about the potential for using cryptocurrency for remittances. There has been some success in that area, but also setbacks as the rise in transaction fees have eroded much of the benefits of running remittances via cryptocurrency. This is why for example BitSpark began migrating from Bitcoin to BitShares and BitPesa have focussed more on B2B than end consumers. As a whole the crypto remittances industry is still very small.
Steem has some major advantages over other cryptos if it were to be used for remittances.
Steem transactions are free. In theory the entire remittance process can be free as a result of this, although there are hurdles to overcome before they will be entirely free. Compare this to the 20% fees typical in some African corridors ($40 to send $200).
Steem is building active userbases in some of the most importance remittance markets. For example Nigeria and The Phillipines are major remittance markets, both of which have a large presence of users on Steemit.com.
Steem transfers are instant, so remittances can potentially happen very quickly.
Steps to create a remittance market on Steem.
Note: This is a rough draft of an idea. The intent is to start a discussion, there is likely much to be worked through in this concept.
1. Identify Remittance Corridors
Remittance corridors are pairs of countries where there has been a lot of migration in recent years. Younger migrants sending money to their family at home, and sometimes vice versa. There is a large movement of money via such corridors, and very little between others. For Steem, the best such corridors will be places with high Steem populations and high fees for traditional remittances.
2. Establish Fiat trading pairs on both sides of the corridor.
It is very important to have a fiat-Steem trading pair on both sides of the corridor. If people are forced to trade to Bitcoin first, it only adds complexity and cost. The advantage of using Steem should be that it is low friction, there shouldn't be extra costs or it won't be competitive.
3. Establish Remittance Agents on recipient side.
Even with a growing userbase, it will be a long time before everyone in a certain market (eg. Nigeria) is on Steem. Remittance agents would be responsible for getting fiat to intended target. They would get a cut, but it would need to be small enough to be competitive.
4. Establish a site or system for facilitating these remittances.
Accept bank transfers, etc. and connect to remittance agent to get money to final destination.
5. Subsidize this all with a promotional campaign.
Initial remittance agents could be paid with the benefit of upvotes for promoting the service/system. See examples of such campaigns by Promo-Steem team
Great post @demotruk , I believe this is just a matter of time before Steem remittances are opened across the globe. @yensesa we are looking at expanding across some key Africa markets (Nigeria, Kenya, Uganda, Rwanda, South Africa) very soon.
I think we can help with all 5 points. to top it off,Indonesia also has a HUGE remittance market, where we have our second largest promo community!
Local steem/fiat exchanges systems are being set up in some countries like @yensesa in Ghana and @steemexchanger in Nigeria.
I wonder if there is scope to work with them for the 'last mile' of the remittance journey in those respective countries?
Host of the My Life in 8 Songs and The Alternative Lifestyle Show radio shows on MSP Waves.
Editor of the Weekly Schedule of Steem Radio Shows.
Founder of the A Dollar A Day charitable giving project.
I am 100% open for the number 3 step, i hope Steem Inc. acts on it.
Wonderful information shared @demotruk
I strongly agree what you say above, but unfortunately, our society must exchange steam to bitcoin first, so the price is shifted. Then just can send to Bank (account)
Yes, so we will need to push to get Steem for trade directly with fiat (Rupiah, Naira etc.) on exchanges .
yes, that's what we expected, like our conversation that day. We need encouragement (support) from all parties to be traded Steem directly in our country.
Wow, this idea is really cool. Having a means where to move cash to love ones at home is really a task most migrants found very difficult to tackle. With crypto remittances scheme guess their worry is over...
And I like the fact that my nation currency is being promoted on the steem blockchain. Smile
I'm sure many people are already doing what you suggest. Would love to hear of their experiences. The main problem is getting fiat in and out of steem which I'm sure adds an additional cost and complication.I would to see a future where these steps were not necessary.
the shift has taken place and now we have until the time that was once only part of the story, steem continues to move all over the world, and soon the dream for global transactions using steem market will happen and this big change in economy ..
Hopefully steem can be used in all world crypto transactions, steem progress can not be separated from #promo-steem campaign conducted by its promoter. good news @demotruk.
I think it would be a good idea to generate campaigns on the knowledge of remittances so that users of Steemit understand their importance, the benefits and their cons, all in general to make a productive system