Some more remittance-related Bitcoin news:
Kenya's http://BitPesa.co gets another $1.1 million investment allowing them to expand to serving Uganda and Tanzania: http://blogs.wsj.com/moneybeat/2015/02/09/bitbeat-kenyas-bitpesa-raises-1-1-million-expands-operations/
Last bank enabling remittances from the U.S. to Somalia forced to discontinue that service: http://www.monbiot.com/2015/02/10/unremitting-pain
Topic: Bringing Bitcoin to the world-competing with Western Union (Read 4143 times)
THanks for the updates, bits park sounds interesting, hope you meet with much success!
Hi All, Bitspark established the world first cash in cash out remittance service between Hong Kong--> Philippines (utilising bitcoin as the means of transmission) about 2 months ago and have been competing with established players like Western Union daily- see some of our coverage. We can send money overseas at half the cost of the competitors to thousands of pickup locations (Banks, Pawn shops, door-2-door) in the Philippines and soon to be launching our services to a number of new countries in the new year (finalising talks now).
We are always welcoming of new partners in expanding remittances globally so if this is something anyone would be interested in feel free to PM us!
Regards,
The Bitspark Team
We are always welcoming of new partners in expanding remittances globally so if this is something anyone would be interested in feel free to PM us!
Regards,
The Bitspark Team
yes this is a major opperation. I would be interested in joining a large business. I bet $100k in funds would be needed for each location to really get rolling. Million of dollars. Solid idea your starting with.
Some recent developments ....
- http://coindesk.com/western-union-faces-backlash-removal-spoof-bitcoin-ad
- http://coindesk.com/western-union-faces-backlash-removal-spoof-bitcoin-ad
I can only confirm this. My limited experience of hawala tells me that the people doing that business do not advertise on the web.
Very surprised to read this. Are they any shops which accept BTC there?
Quote
Although Somaliland is on its way to becoming the worlds first cashless economy.
Very surprised to read this. Are they any shops which accept BTC there?
http://soolpress.com/somaliland-in-top-5-cashless-countries/
Interesting. I hadn't imagine that.
So maybe in the future, the difference won't be between cash and cashless, but between "cashless under government's supervision" and "cashless without government's supervision" with BTC.
I can only confirm this. My limited experience of hawala tells me that the people doing that business do not advertise on the web.
Very surprised to read this. Are they any shops which accept BTC there?
Quote
Although Somaliland is on its way to becoming the worlds first cashless economy.
Very surprised to read this. Are they any shops which accept BTC there?
http://soolpress.com/somaliland-in-top-5-cashless-countries/
I can only confirm this. My limited experience of hawala tells me that the people doing that business do not advertise on the web.
Very surprised to read this. Are they any shops which accept BTC there?
Quote
Although Somaliland is on its way to becoming the worlds first cashless economy.
Very surprised to read this. Are they any shops which accept BTC there?
A friend recently sent 5000 dollars from Germany to Somalia for a fee of 100. There might have been an extended family connection involved. I am sure the rate you get doing internet searches is not the same as with somebody from your clan who is in the hawala business.
the hawala from Germany to Somalia charge less than 2 percent
I found this hard to believe, so I did some research. While I found that UK>Somalia was one of the cheapest corridors at only 5.8%, I think your 2% figure may be exaggerated. Perhaps you can if you send a very large amount.
The amount that the rates vary in Africa is astounding! Sending from South Africa to a bunch of other African countries costs >20%.
Here is a summary of the World Bank report:
Quote
The average total cost of sending money to Africa in Q4 2012 was 11.89
percent; the second highest since the SMA database was launched in Q3 2011.
The cost of sending money to Africa in Q4 2012 was nearly three percentage
points more expensive than the global average cost for the same period, which
measured at 8.96 percent, according to Remittance Prices Worldwide (see
http://remittanceprices.worldbank.org).
The 10 most expensive corridors were all intra-Africa; with the top five all
originating in South Africa.
The most expensive sending markets of those surveyed are Tanzania, South
Africa, and Ghana. The cheapest sending markets are those in the Gulf – UAE,
followed by Saudi Arabia, and Spain.
The most expensive countries to send money to are those receiving mainly
from other African countries – namely Malawi, Botswana, and Mozambique.
The cheapest market to send money to is Egypt – surveyed only in the Gulf
countries in the sample. Egypt is followed by Liberia and Somalia.
Commercial banks continue to be the most expensive RSP type.
Bank account services are the most expensive method of transfer
remittances.
percent; the second highest since the SMA database was launched in Q3 2011.
The cost of sending money to Africa in Q4 2012 was nearly three percentage
points more expensive than the global average cost for the same period, which
measured at 8.96 percent, according to Remittance Prices Worldwide (see
http://remittanceprices.worldbank.org).
The 10 most expensive corridors were all intra-Africa; with the top five all
originating in South Africa.
The most expensive sending markets of those surveyed are Tanzania, South
Africa, and Ghana. The cheapest sending markets are those in the Gulf – UAE,
followed by Saudi Arabia, and Spain.
The most expensive countries to send money to are those receiving mainly
from other African countries – namely Malawi, Botswana, and Mozambique.
The cheapest market to send money to is Egypt – surveyed only in the Gulf
countries in the sample. Egypt is followed by Liberia and Somalia.
Commercial banks continue to be the most expensive RSP type.
Bank account services are the most expensive method of transfer
remittances.
http://sendmoneyafrica.worldbank.org/sites/default/files/SendMoney_Africa_Remittances_Report_2013.pdf
Money talks. But the hawala from Germany to Somalia charge less than 2 percent, so it would be difficult to compete with that. Although Somaliland is on its way to becoming the worlds first cashless economy.
Possible.
I think sometimes that I've been working on computers for more than 20 years, and I've been on the Internet daily since 1996. It would be much more difficult to explain bitcoin and the safety of the blockchain to someone who rarely uses computer, living in Somalia where electricity is a luxury.
I think sometimes that I've been working on computers for more than 20 years, and I've been on the Internet daily since 1996. It would be much more difficult to explain bitcoin and the safety of the blockchain to someone who rarely uses computer, living in Somalia where electricity is a luxury.
Would that be enough for the average Somalian to make the switch?
Perhaps since Western Union, nor any other bank-related entity associated with the western world will serve Somalia then the choice has already been made for the "average Somalian".
Those who provide hawala could add exchange of Bitcoin to their repertoire and make more profit from that method, since there is no need to split the commissions with any other party.
It could work but you have to start at street-level. Western Union is well known and trusted brand name. If you want to compete, you need to open a shop in Mogadiscio, with a big Bitcoin logo, changing cash to bitcoin and vice-versa. I guess that calls for a significant investment. I've never been to Somalia, but I've been to neighboring Kenya and safety can be a serious problem if you're not in the good areas. Then, the unanswered question will be how much time it takes for bitcoin to convonce the man in the street. Imagine WU charges a 10% fee, and you charge only 3% for exchanging. Would that be enough for the average Somalian to make the switch?
Bitcoin is exploding and we are witnessing the making of history.
I'm interested in starting a conversation about bitcoins in emerging markets. Don't have deep pockets but there has to be a better way for people to send money internationally without high costs. This is definitely worth exploring and speaking with people already making Bitcoin available in places like Argentina.
I just read this:
Quote
A startup called artaBit, is attempting to take on Western Union in the money-transfer business, using Bitcoin as the transport currency between countries, with a focus on sub-$1,000 transfers to Southeast Asia. The artaBit system would accept user deposits in one currency, transfer it to Bitcoin for the overseas trip, then convert those Bitcoins into whatever other currency is needed on the other end of the transaction. Co-founder Ayoub Naciri believes the company can offer the service at rates as low as 3%, easily beating Western Union’s flat-rate service charges, which can range as high as 30%, he says, on small transactions.
“We’re removing exposure to Bitcoin to the customer,” Naciri said. “Neither the sender nor the receiver needs to know about Bitcoin or even be aware of its existence to use the service. We don’t want to have the barrier of having to explain to people what Bitcoin is.”
“We’re removing exposure to Bitcoin to the customer,” Naciri said. “Neither the sender nor the receiver needs to know about Bitcoin or even be aware of its existence to use the service. We don’t want to have the barrier of having to explain to people what Bitcoin is.”
- http://finance.yahoo.com/blogs/the-exchange/future-bitcoin-202631430.html
- http://www.artabit.com <-- Indonesian language only
Good reference there, I wasn't aware of Kipochi but that's the kind of thing I had in mind for the Philippines. The key thing is ease of use. If people find it easy to use and cheap, it will take off and word of mouth will do the work for you. There's an entire local market structured around small loans called 6/5 that are purely cash but really expensive, plus the local agents like MHLuiller that charge 5% on transfers but handle small amounts as well as really large ones at the same rates. What is really needed is a way to handle it on basic mobiles with limited internet functionality to make it really accessible and low cost. There's the Pasaload system that allows you to pass mobile phone credit around with just a text message and Smart allow you to send money using text messages. Seems to me that something very similar might be possible with bitcoins, but the tricky bit might be connecting buyers and sellers and managing a wallet securely. I had images of a simple server based system that connected buyers and sellers using text messages maybe?
Better check out kipochi... it would also be a good time for anyone with the funds and expertise to get into the same line of business kipochi is in.
I wrote this earlier, before I stumbled upon this topic,
https://bitcointalk.org/index.php?topic=88320.80
It seems like we're thinking in similar directions. The big question is how to make it happen.
https://bitcointalk.org/index.php?topic=88320.80
It seems like we're thinking in similar directions. The big question is how to make it happen.
This is definitely on the right track.
The main use of Bitcoin (and alternative currencies like it) is clearly for cross border exchange.
The big question is how to make it happen.
Probably one country at a time.
Providing the appropriate technology to allow people on the street to individually act like money changers.
The main use of Bitcoin (and alternative currencies like it) is clearly for cross border exchange.
The big question is how to make it happen.
Probably one country at a time.
Providing the appropriate technology to allow people on the street to individually act like money changers.
Jump to: