BitShares Taking Remittance Industry By Storm
Author Michael Taggart
Last week Bitcoin dominated headlines after hitting all time highs and breaking the $10,000 barrier. While many investors had their eyes on Bitcoin, another blockchain is making major moves in the remittance industry.
The global remittance industry is a multi-billion-dollar market. The World Bank estimates that officially recorded remittances to developing countries amounted to $429 billion in 2016.
A remittance is a transfer of money by a foreign worker to an individual in his or her home country. These cross-border transfers are economically significant for many countries that receive them.
Remittances often compete with foreign aid as the largest capital inflow for developing nations. Many economies rely on remittances to survive. Over 200 million migrants send $600 billion dollars back home each year.
In many of these developing nations less than 20–30% of the citizenry have bank accounts. The other 70% of the population is without access to a bank or financial services and have been deemed “the unbanked”.
There are projects and companies that are looking to revolutionize the remittance industry using blockchain technology. Even though the market is very competitive, BitShares is slowly establishing itself as a dominant force in the industry.
Remittance Services Built on BitShares
BitShares, while getting less exposure than other platforms like Ethereum, has a slew of companies building on the platform. Back in August, Bitspark announced that they will be switching to the BitShares Blockchain from Bitcoin because it is better suited for the company’s business.
MicroMoney recently completed a successful initial coin offering that raised $10 million. The company already has eight exchanges planning to support and trade their token AMM. AMM is a utility token. The token is an integral part of the MicroMoney ecosystem and can be used as an internal payment mean or to get access to MicroMoney’s services.
MicroMoney is an Open Source Credit & Big Data Bureau that connects new customers to all existing financial services. MicroMoney A.I. platform uses complex algorithms to predict creditworthiness of all customers and in just 15 minutes a borrower can get their very first loan in his/her life just from their smartphone.
All aggregated Big Data and Credit Histories are stored on the Blockchain. Thousands of existing businesses will get access to millions of new customers which the company will bring to the global economy.
MicroMoney has 95,000+ unique registered users and operates in Cambodia, Myanmar, Thailand, Sri Lanka, Indonesia and the Philippines. MicroMoney is a fast-growing company valued at $1.85 million, with over 85 employees in six locations around the globe.
The company has ambitious plans for future expansion with everything in place to roll out operations in Hong Kong, Vietnam, China, Malaysia, Singapore and Nigeria. MicroMoney has a working product and access to some of the largest markets for remittance services in the world.
Why Are Remittance Services Choosing BitShares?
You may be wondering why so many remittance services are making the switch to BitShares. BitShares is an ideal platform for the remittance industry. The company Bitspark cited four specific areas where BitShares is ideally suited for remittances:
- Pegged Cryptocurrency Creation — Payment providers are forced to go through “gatekeepers” in order to access the 180+ world currencies. BitShares enables anyone to create a pegged asset which has its value pegged to assets like the USD or CNY, and trade it on their decentralized exchange. “The BitShares Blockchain can solve the problem of access as there is no need to hedge USD and rely on a single gatekeeper.”
- Speed & Cost — “The BitShares Blockchain itself is built to scale to 100,000 transactions per second with fees as low as fractions of cents and confirmation times sub 3 seconds.” BitShares is truly an industrial grade blockchain scalable to meet the needs of businesses.
- Liquidity — Liquidity is required to be a market maker, with BitShares, “anyone can issue the fiat pegged cryptocurrency so long as they have appropriate BTS to lock up in a smart contract as collateral. This is important as it means anyone around the world can participate as a market maker”
- Decentralized Exchange (DEX) — Carrying out business on a decentralized exchange significantly reduces risk by removing the reliance on a centralized third party. When a centralized exchange is compromised, millions of dollars and thousands of users are impacted all at once. In a decentralized system, any attack or failure impacts only a single user and their funds.
Bringing financial services to “the unbanked” is one of the greatest economic challenges we face today. Fortunately, it will also provide one of the greatest economic opportunities in history.
The technology known as the blockchain, more specifically cryptocurrency, will unleash the financial power of previously untapped regions of the world. Reaching “the unbanked” is not just about making money, it is about giving people opportunity and a foundation from which they can grow and prosper.
2017 has proven to be a great year for the entire cryptocurrency market. While Bitcoin may be capturing the headlines, platforms like BitShares are actually building the infrastructure for the new digital economy.
Bitspark, MicroMoney and Bankcoin combined will offer remittances to nearly every major region of the world. It is estimated that over $6 trillion will be sent in remittances by 2030. Many of these remittances will be sent using the BitShares platform.
Keep an eye on these projects and expect to see more big announcements from BitShares as other companies begin to understand the full potential of the platform.
If you would like to learn more about the powerful features BitShares has to offer click here.