Topic: My Business Idea by Bitcoin to Help People to Transfer remittances Faster (Read 198 times)

I think some many people are well of cryptocurrency, especially Bitcoin but the fear of their government laws or should I say the ban on cryptocurrency has been the major reason why they have refused to buy bitcoin and keep it for future use, I believe is crypto is generally accepted by all the nations of the world we will see a good number of people who are crypto gurus but are scared of purchasing it because of their government laws and instructions. All the leaders of the needs to be addressed so that they can see more reasons to adopt bitcoin.

its xerox.. im surprised they didnt copy the idea... excuse the pun
but then again. if you worked for durex(EU version of trojan).. they would have given you the rub too

A fun little story about settling payment transfers...  In 2011, after discovering Bitcoin, I pitched an idea to the board of Xerox.  I was at the time overseeing a team of people who were reconciling global payments and the length of time it took to verify some transfers was painstaking.  I thought Bitcoin could reduce this sometimes multiple week wait into an hour.  I pitched that Xerox invest 3 million dollars into a team, led by me, to build this system.  1 million was to be spent on purchasing Bitcoin around the price of $2 each.  1 million was to be used for staff for a multiple year contract, and the other million was to be used for hardware like mining equipment and office space in our building that we would rent from one of our outsourcing clients, which would also save that contract money.  They declined.  Today that purchase would be worth about 5 times their entire market cap.  A year after this stupid business decision that would have changed the entire company, Obama was praising Ursula Burns for her outstanding leadership...

In hindsight, I'm glad that I didn't help Xerox become the largest player in the Bitcoin space.  Bitcoin would likely not have been as successful if I were able to pursue my proposal.  As a result of the denial, I left the company and started doing my own thing.  It worked out.  

alot of people have tried this. but here is the experiences of them.
1. in countries that deem bitcoin as a legal currency.
 by accepting fiat in exchange for another currency as a business, those 'agents' become MSB's(money service businesses). which require licences, regulated insurance(X reserves locked up) and inspection/auditing/ costs.
.. however there are some countries that have not determined bitcoin as being a 'currency' by law, by which that means that bitcoin is treated as simply an asset(product/service) and thus agents in those countries are thought of as just merchants.

so be aware of the legal frame work the businesses have to work within when setting up in certain countries

2. the costs of opening a business are not cheap, nor are employee's. so while wanting to fight the 'remittance fee' of places like western union. many of these start-ups end up realising the hard way that they have their own costs to cover, and so they start charging a fee.. in many cases they pretend they dont charge a fee, and instead just adjust the 'spread' of the market price to hide any suggestion of a fee while scalping a profit from the market spread. either way it ends up that the customers at both ends of a remitting see a noticeable difference between how much was sent and how much was received compared to forex exchange rates.

so keep in mind of costs associated with running a business. even if you can avoid the countries that require legal costs of regulation of MSB, you still have the employee salary, and the volatility swings which usually add on a few % of difference to the market 'spread' on both sides to cover both employee's(no one works for free)

3. what ends up happening, especially in countries that deem bitcoin as currency (MSB licence costs associated) is that instead of there being independent small businesses in each town of a country where each business has to pay a licence fee each. they all end up centralising into a national/international company where the company buys a licence and the workers in each town just act as employee's of the company.

4. for the countries that do require MSB licences. its not just the licence application fee. its the ongoing monitoring/supervision.
lets use numbers from america. page 2
money transmitters might be monitored for 140-500 hours a year at $107 per hour cost, which is ~ $15k-$54k dependant on volume transfered
other upfront costs are included aswell like staking(collateral locked) of certain amount of fiat/crypto reserves, where amounts locked are dependant on how much volume shall be done in a year.

And, why haven't you shared any of the results, why no topic about it, why nothing?

Simple question


I was going to say that OP has learned a hard lesson, but no, he hasn't learned a thing.

Yes of course people have not known cryptocurrency and especially bitcoin in some many countries, or some know but they don't know exactly how to purchase and keep in the wallet,  i think those people in question are not curious to know cryptocurrency regulations and don't want to adopt it from my perspective. In the aspect of earning from cryptocurrency world, i don't think that it's not every body who enroll into cryptocurrency as option of investment benefits from it, if you are not informed and lecture the theory of cryptocurrency you ends on losing from the investment. So i think people needs to be lectured via cryptocurrency

Yes, you are right. Our country is now digital. And with that we have to change. Now it does not have to continue like the previous era. Now it is very difficult to send money from one country to another. Which makes us unbearable. And since we have cryptocurrency, we can transact money easily and without hassle. It will also reduce our time and cost. Bigger than that, we don't have to depend on any third party.In a few minutes our money will be in hand. And I can be safe from fraud.

Your good intentions to help are fine, but from there to believe that what you offer is an innovation, I repeat, the attitude is not bad, the point is to believe that something like this is not done, in fact El Salvador has (had) as a flag remittances.

I wish you success, in any case you must be careful everyone who works with bitcoin in a public way  always exposed to another factor, crime.

It seems to me that you already have a working system in place since you are already running this in about six different countries and you must have put in place processes by which this run and could be replicated during further expansion, so I am thinking opinion isn't going to do much except you feel the process is not working, however, I think @Freeveto question is what worries some of us most considering how quickly Bitcoin price can change sometimes like what we witnessed under the past 24hrs with Bitcoins price.

You should take note about BTC price volatility, So how are you going to tackle the volatility without running into some loses, let say for instance, in case where you're given $100 to remit and before you excute the transaction the price of Bitcoin might have had a thousand dollars or more in increase in price therefore needing more of the dollars to purchase Bitcoin. How do you go about it?

Yes, there are many sites on the internet that offer this service transfer remittance by using crypto . However, I would like to say that those who do not know about crypto or those who have no connection with the Internet or those who do not know how to use these services on the Internet,Those who know only Fiat money. how do they use these sites? I'm thinking of the very ordinary and foolish people and I want to start this business for them.

I don't want to be a show stopper, but according to what I've found on the internet there are already a lot (i.e. 101, it seems) of crypto-remittance companies over the world: https://tracxn.com/d/trending-themes/Startups-in-Cryptocurrency-Remittance

If you're starting a new business in this area, you'll have to find a good way to handle sudden price variations for crypto while keeping the fees low.
Also keep in mind that since the inception of Bitcoin the banks and similar services have been lowering their fees more and more, and also started speeding up their operations. So you have to develop fast, big and meanwhile keep the fees low.

Now, I don't understand from your business model if you will transfer the money internationally or you'll send crypto to the office from the other country and that one will sell the coins and do local transfer afterwards (keep in mind that it has to be a clean business, else money laundering and lost funds will happen). But if you do this, crypto is not even necessary, since it's your company's money on both sides, you can transfer fiat to the other branch (fiat that will get there in some days, but it doesn't matter) and that branch, in the same time, will send locally the needed fiat as (local, faster) bank transfer.

So crypto may be useful if the various branches are franchise/have different owners, but otherwise.. not so much. Am I missing something?

There are many Countries people go to another country like (Indonesia, India, Pakistani, Bangladeshi)  for earn money and they earn money and send money to their family as a Remittance. 95% of them do not know what is bitcoin.  They have no basic knowledge of cryptocurrency. They suffer a lot for sending their hard earned foreign currency to their country as Remittance by a Bank and Mobile Banking who is control a 3rd party Agency or any person. They deduct a lot of money from there as dividends on their business. In this case, the remittance fighters suffered a lot. On the other hand, it takes a long time for the remittances to reach their families, which is a minimum of 2 days to 15 days. In this case, both the senter and the recipient suffer a lot.

I would like to set up one agency in each of the countries where many remittance fighters work. Where people will give their Cash money to that agency and also give their family members bank account or mobile banking number. And the Employee of that agency will buy the same amount of bitcoin and send it to the Employee of the other countrys agency where the remittance fighter want to transfer his money. And the Employee of that agency will send the money to the bank account or mobile banking address of the family of the person sending the remittance. Which can be done in just a few minutes. And the harassment on both sides will be much less.  I have already started this program in Malaysia, Singapore, Saudi Arabia, India, Pakistan, and Bangladesh.  I want to spread it in more countries.  I want to know your opinion about this.