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In this photo taken on Sunday, February 16, 2014, a client of Dahabshiil, the largest remittance company in Somalia, exchanges his US dollar bills with Somali shillings outside the company's headquarters in Mogadishu, Somalia. (AP Photo / Farah Abdi Warsameh)
In the first world, where life's problems pale in comparison to those of the third world, there is a disconnection between what difficulties should be resolved and those that must be. In the first world, people are worried about where their coffee beans come from with their Starbucks order, those coffee-bean growers are worried about how they will get money for their family at home, across different borders.
While blockchain aims to upset and provide solutions to a multitude of life problems, from major to minor, there are areas where technology should be carefully focused. It can, in fact, help solve the problems of the first world and increase efficiency and productivity, for example, but it should be guided in the third world where it can change life for the better.
Remittance payments are an area that is a lifeline for millions of people around the world, especially in rural areas. People are finding work outside their land and need to send money home to friends and relatives to support them. However, the system of remittances as a stand is incredibly capitalist as it is a huge business that takes away the people who need it most.
It's an old adage regarding the power of the blockchain. Decentralized and transparent nature, in a financial sense, can help alleviate the need for intermediaries and thus make payments – especially cross-border payments – cheaper, more efficient and much less unnecessarily regulated.
Returns power to individuals – individuals who need it most. People who use remittance payments are collecting every penny to survive and help their family survive, but they are hampered by huge taxes and long turnaround times.
The cross-border potential of Blockchain
There's still a huge debate about what the killer app for blockchain will be. Some believe that cryptocurrencies in general are the way forward for this technology in terms of adoption and use, but this is a broad sector. Thus, some believe that this global digital currency, without borders, could be the way to implement a blockchain adoption and there will find its best use case.
It is a useful tool for having a currency that can cross borders at a fraction of the cost of a bank and without all the bureaucracy. Not to mention the added competence, efficiency and speed. Therefore, when it deepens even further into it, it is logical that blockchain and cryptocurrency are aimed at disrupting the current remittance system that is extremely unfair and inefficient.
Current status of remittance payments
Those living with remittance payments have a real understanding of how difficult and harsh the system is, but Lorien Gamaroff, who is the CEO of a blockchain company & nbsp; wallet & nbsp; call Centbee focusing on Africa, explains the current state of things and why something needs to be done.
"Millions of Africans leave their countries and work elsewhere, and every month and year they send money home to their families," explains Gamaroff. "The suppliers of existing remittances invoice between 10% and 20% to make the transfer, often the processes are burdensome, require forms to fill out, or are inconvenient and expensive.
"Some cryptocurrencies, like Bitcoin Cash, have very low transaction costs, about US $ 1 for any amount.This is a very appealing idea for those people who earn very little and are trying to preserve as much value as possible in the transfer. . "
It's not just an African problem, it's a huge part of the global population that is under the limit and requires remittance payments to help keep themselves and their families afloat.
"The main problem lies in its cross-border nature, which significantly complicates the passage of cash flows and adds costs," explains Clarke Robertson, director of Noahcoin, another company that seeks to help in cross-border payments and remittance systems, he explains, this time in an Asian context. "Using banking services or payment systems, workers have to pay huge taxes: up to 9.82% in Japan, about 6% -10% in the Philippines".
A simple update for everyone
The notion is simple. The current state of remittance payments is not only less than the people who need the most money, but it is also leading these people to try to get money across borders by unregulated means.
So, while the upgrade from the traditional remittance to a blockchain-based system clearly shows the advantages in removing an expensive broker, which is also ineffective and slow, it also has benefits for governments that want to keep track of money movements through borders.
Gamaroff goes on to explain how cryptocurrencies should not be completely anonymous and can be used in accordance with the KYC and AML rules, so for regulators, there is a way to track and tax this money movement while keeping it time commissions for individuals.
"Regulatory obstacles are being eroded as regulators become more educated about the mechanics of cryptocurrencies: they are beginning to realize that cryptocurrencies like Bitcoin Cash are not anonymous and the current KYC and AML rules are easy to apply. it means regulators and tax authorities can have greater visibility on transactions than traditional payment methods, "says Gamaroff.
"More than half of the money moving across the border in Africa goes through informal channels, which are usually taxis that carry suitcases of money and others with similar means.We want to allow consumers to easily send something like Bitcoin Cash to a certain number of countries and then convert it into mobile money like EcoCash or MPesa. "
The transparency mentioned by Gamaroff is taken up by Robertson, but regarding the safety of the senders and receivers using the Blockchain shed.
"With Blockchain, both the sender and the recipient would be able to monitor the flow of money and know exactly if the funds have reached their destination or not.There is the risk of losing money somewhere between the parties and their wallets, "adds Robertson.
More effort required
There are many cases, especially in areas such as Africa and rural Asia, where blockchain technology can literally transform the lives of millions of people who need it most. It's a sad state of affairs in which people in the most terrible situations are still exploited by centralized companies that offer life-saving services.
The need for remittance payments is only growing, and as such it is a big business and is attracting more and more people who want to take advantage of their intermediate cut.
"Labor migration is one of the main demographic trends of the last decades and Asian countries are not an exclusion", explains Robertson in Asia. "Moreover, remittance payments in this region often constitute the largest part of the budget on which foreign workers' families live and contribute a lot to overall GDP, for example, in the Philippines, over 10% of GDP (which is about $ 30 billion) derives from remittances ".
Blockchain technology is still finding its feet, and has been tested in a number of areas, but in reality, its direction should be strongly addressed to where it can do its best. Decentralized in its core, and not greedy in nature, blockchain technology should be configured as the tool of the undersized, but needs a great push to get there.
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In this photo taken on Sunday, February 16, 2014, a client of Dahabshiil, the largest remittance company in Somalia, exchanges his US dollar bills with Somali shillings outside the company's headquarters in Mogadishu, Somalia. (AP Photo / Farah Abdi Warsameh)
In the first world, where life's problems pale in comparison to those of the third world, there is a disconnection between what difficulties should be resolved and those that must be. In the first world, people are worried about where their coffee beans come from with their Starbucks order, those coffee-bean growers are worried about how they will get money for their family at home, across different borders.
While blockchain aims to upset and provide solutions to a multitude of life problems, from major to minor, there are areas where technology should be carefully focused. It can, in fact, help solve the problems of the first world and increase efficiency and productivity, for example, but it should be guided in the third world where it can change life for the better.
Remittance payments are an area that is a lifeline for millions of people around the world, especially in rural areas. People are finding work outside their land and need to send money home to friends and relatives to support them. However, the system of remittances as a stand is incredibly capitalist as it is a huge business that takes away the people who need it most.
It's an old adage regarding the power of the blockchain. Decentralized and transparent nature, in a financial sense, can help alleviate the need for intermediaries and thus make payments – especially cross-border payments – cheaper, more efficient and much less unnecessarily regulated.
Returns power to individuals – individuals who need it most. People who use remittance payments are collecting every penny to survive and help their family survive, but they are hampered by huge taxes and long turnaround times.
The cross-border potential of Blockchain
There's still a huge debate about what the killer app for blockchain will be. Some believe that cryptocurrencies in general are the way forward for this technology in terms of adoption and use, but this is a broad sector. Thus, some believe that this global digital currency, without borders, could be the way to implement a blockchain adoption and there will find its best use case.
It is a useful tool for having a currency that can cross borders at a fraction of the cost of a bank and without all the bureaucracy. Not to mention the added competence, efficiency and speed. Therefore, when it deepens even further into it, it is logical that blockchain and cryptocurrency are aimed at disrupting the current remittance system that is extremely unfair and inefficient.
Current status of remittance payments
Those living with remittance payments have a real understanding of how difficult and harsh the system is, but, Lorien Gamaroff, who is the CEO of a blockchain wallet company called Centbee that focuses on Africa, explains the state current of things and why something needs to be done.
"Millions of Africans leave their countries and work elsewhere, and every month and year they send money home to their families," explains Gamaroff. "The suppliers of existing remittances invoice between 10% and 20% to make the transfer, often the processes are burdensome, require forms to fill out, or are inconvenient and expensive.
"Some cryptocurrencies, like Bitcoin Cash, have very low transaction costs, about US $ 1 for any amount.This is a very appealing idea for those people who earn very little and are trying to preserve as much value as possible in the transfer. . "
It's not just an African problem, it's a huge part of the global population that is under the limit and requires remittance payments to help keep themselves and their families afloat.
"The main problem lies in its cross-border nature, which significantly complicates the passage of cash flows and adds costs," says Clarke Robertson, director of Noahcoin, another company that seeks to help with payments and remittance systems. cross-border, he explains, this time in an Asian environment. "Using banking services or payment systems, workers have to pay huge taxes: up to 9.82% in Japan, about 6% -10% in the Philippines".
A simple update for everyone
The notion is simple. The current state of remittance payments is not only less than the people who need the most money, but it is also leading these people to try to get money across borders by unregulated means.
So, while the upgrade from the traditional remittance to a blockchain-based system clearly shows the advantages in removing an expensive broker, which is also ineffective and slow, it also has benefits for governments that want to keep track of money movements through borders.
Gamaroff goes on to explain how cryptocurrencies should not be completely anonymous and can be used in accordance with the KYC and AML rules, so for regulators, there is a way to track and tax this money movement while keeping it time commissions for individuals.
"Regulatory obstacles are being eroded as regulators become more educated about the mechanics of cryptocurrencies: they are beginning to realize that cryptocurrencies like Bitcoin Cash are not anonymous and the current KYC and AML rules are easy to apply. it means regulators and tax authorities can have greater visibility on transactions than traditional payment methods, "says Gamaroff.
"More than half of the money moving across the border in Africa goes through informal channels, which are usually taxis that carry suitcases of money and others with similar means.We want to allow consumers to easily send something like Bitcoin Cash to a certain number of countries and then convert it into mobile money like EcoCash or MPesa. "
The transparency mentioned by Gamaroff is taken up by Robertson, but regarding the safety of the senders and receivers using the Blockchain shed.
"With Blockchain, both the sender and the recipient would be able to monitor the flow of money and know exactly if the funds have reached their destination or not.There is the risk of losing money somewhere between the parties and their wallets, "adds Robertson.
More effort required
There are many cases, especially in areas such as Africa and rural Asia, where blockchain technology can literally transform the lives of millions of people who need it most. It's a sad state of affairs in which people in the most terrible situations are still exploited by centralized companies that offer life-saving services.
The need for remittance payments is only growing, and as such it is a big business and is attracting more and more people who want to take advantage of their intermediate cut.
"Labor migration is one of the main demographic trends of the last decades and Asian countries are not an exclusion", explains Robertson in Asia. "Moreover, remittance payments in this region often constitute the largest part of the budget on which foreign workers' families live and contribute a lot to overall GDP, for example, in the Philippines, over 10% of GDP (which is about $ 30 billion) derives from remittances ".
Blockchain technology is still finding its feet, and has been tested in a number of areas, but in reality, its direction should be strongly addressed to where it can do its best. Decentralized in its core, and not greedy in nature, blockchain technology should be configured as the tool of the undersized, but needs a great push to get there.
