A Bitcoin Remittance Model That Could Revolutionize The Developing WorldsteemCreated with Sketch.

in #remittances7 years ago (edited)

Introduction

Could a bitcoin remittance model service the needs of individuals in the non-industrialized global south? If the answer is yes, then how should such a model be implemented in order to ensure success? These are some of the questions Exceptional Insights Group analysts were charged to investigate a couple years ago. The following is a summary of what was discovered.

Traditional remittance methods don’t cut it

Traditional remittance methods based on the legacy western financial system just don’t cut it for the vast majority of the populations in the non-industrialized markets/jurisdictions. High cost and lack of relevant infrastructure being among the many factors impeding an efficient implementation of these legacy systems in non-industrialize markets/jurisdictions. Western union for example barely works at the retail location and the on-line version almost never works.

Bitcoin based remittance models are much better

Bitcoin based remittance methods are much cheaper than legacy methods. The bitcoin blockchain is also decentralized which means there’s no single authority to issue adverse regulations which have to be complied with. Access to the bitcoin blockchain is open to all and sundry, once they have Internet access they’re in! Bitcoin is becoming increasingly more exchangeable relative to national fiat currencies. It will become more so as its adoption and use accelerates.

However strategy & implementation is key

The key to success for any bitcoin based remittance model lies in the model’s strategy and implementation. Ideally the a bitcoin remittance implementation strategy would result in non-industrialized market/jurisdiction individuals being able to receive and remit value in every location where they would normally conduct retail trade, such as the corner stores, public markets, etc.

Conclusion

The Exceptional Insights Group’s bitcoin remittance model calls for the initial implementation to be made in local cyber cafes. These usually consist of a room full of computers and seating for walk-in clients to use for an hourly fee. The group’s Latin American associates are currently disseminating details of the model in their local markets/jurisdictions. The group is also currently producing a bitcoin remittance startup manual that will be made available for purchase to cyber cafe operators.

Using the group’s model will allow, among other things, individuals in non-industrialized markets/jurisdictions to remit value and have value remitted to them, to/by loved ones locally or around the globe, in a efficient and cost effective manner. It also provides a small business operators in non-industrialized markets/jurisdictions with another possible profit center.

The model also serves as the basis for other commercial and financial models which can be implemented over the remittance model.

Attribution: This content was originally published on the 23rd of January, 2017. https://medium.com/@mikehydes/a-bitcoin-remittance-model-that-will-revolutionize-the-developing-world-f4807b120f68

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