Feb 14, · The status quo in the digital segment of the remittance market undoubtedly creates opportunities for decentralized cryptocurrencies as well. Transaction fees in the case of bitcoin cash (BCH), for example, are less than a cent per transfer. May 25, · Finally, bitcoin technology has a lot of property to attract digital remittance operators, starting with its decentralized technology, and some money has been invested in this market as the. Aug 18, · Bitcoin-based remittance firms such as PayFast, Xoom, and BitPagos have also targeted markets in South Africa, the Philippines and Argentina.
Bitcoin remittance marketWhy Bitcoin Faces an Uphill Battle in the Remittance Market
Mexico, one of the markets in which Coincove is working, for example, has very strict AML guidelines due to the local drug trade, and high penalties for non-compliance. But, Alvarez said that he believes Coincove can adapt around this challenge, saying:. Coincove is not considered a money business in Mexico, but it is following the guidelines as a preemptive measure, Alvarez says. Due to these steps, he says his group is now working with domestic payment processors and banks.
The foremost reason Brown suggests bitcoin remittance businesses will struggle is because of the different ways digital currencies are being approached by regulators. Due to these differences, Brown says, regulators will not provide bitcoin remittance businesses with the free reign they may need to innovate.
Alvarez echoed this danger. Coincove is now operating in Latin America, due in part to its slow response on digital currency regulation, providing it exactly this testing ground.
However, as an early market entrant, he sees an opportunity to influence regulation through eventual dialogue in these countries. Brown acknowledged that companies that facilitate remittances between certain lucrative markets may be the most likely to take hold, provided the legislative framework is complementary, and so far Coincove provides evidence to this claim. However, as Alvarez indicates, it still finds itself locked out of the US, the largest sender of remittances, so such arrangements are inherently limiting to the expansion of his business.
Llanos was more optimistic than Brown, noting that technology always outpaces regulation and that, although there will be challenges ahead, bitcoin can find a way to overcome them.
Global development is supported by. Mark Anderson. Mon 18 Aug Just sent in bitcoin: Immediate, free — Barry Silbert barrysilbert June 4, Abra raised a seed round and launched its service a few weeks ago in San-Francisco to ease money transfers based both on P2P and bitcoin technologies. In emerging countries, Rebit is developing its remittance service to send money to the Philippines through bitcoin, ArtaBit develops a service to Indonesia and Coincove to Latin America.
Whereas bitcoin is an open-source technology, it has long been regulated and constrained by banks and states. Based on a combination of public and private key the technology is seen as an anonymous way to transfer money then easing traffic and money whitening. Companies that are operating bitcoin transfers also need to get a regulation approval to operate in developed markets as financial institutions request every actor to confirm it operates under transparent processes.
Protecting against currency exchange rates is the main issue for these companies. Security is another issue for the Bitcoin industry as a few platforms have been hacked and bitcoin wallets have been closed making millions of BTC disappear without any counterpart for their owners.
Finally, bitcoin technology has a lot of property to attract digital remittance operators, starting with its decentralized technology, and some money has been invested in this market as the remittance industry is quickly shifting to digital.