Crypto currency, as a solution for cross-border money transfers.

The digital currency bitcoin, first of all, was created with the goal of making international transfers simple and safe.

Bitcoin remains the preferred solution for those who want to send money abroad without using the services of banks and payment systems.

Nevertheless, crypto-currency payments lack the simplicity of traditional payment mechanisms, such as plastic cards.

When you want to send money abroad through international money transfer services, you do not need to learn how to work with stock exchange crypto-currencies.

Despite the fact that most of them are trying to offer a user-friendly interface, they are mostly focused on traders, not on those who want to exchange currency for crypto, and then forget about it as soon as possible.

In any case, when dealing with crypto currency transactions, you have to do much more manipulation than when transferring money from the card to the card.

Due to the relative complexity of working with bitcoins, many start-ups and companies began developing solutions that could make the whole process simple even for users with insufficient experience in the field of crypto-currency.

There are quite a few solutions that try to facilitate money transfers - both international and domestic.

One of the most promising markets in this respect is Africa, where most people do not have access to bank accounts and rely heavily on mobile phones. There are quite a few services, such as BitPesa or Bitwala, which offer instant money transfers. Such start-ups are mainly based on hiding crypto currency from users.

The user's currency is anonymously translated into BTC, transferred to another user, and then also anonymously translated back to Fiat. For example, BitPesa exchanges bitcoins for local fiat currencies with the sending of the asset to the user's mobile phone account.

The central bank of Nigeria banned citizens of the country from using credit cards for international operations as early as 2016 due to the deliberate devaluation of Naira, the country's national currency.

Many of the new local and international start-ups offer money transfer services that can circumvent the ban on public authorities.

Developing countries, as a rule, are considered the best platform for the functioning of crypto-currency companies and services.
For example, in Venezuela, which was badly hit by the financial crisis, local residents prefer to use crypto currency instead of the currency to transfer money abroad and save personal savings.

Therefore, some exchange services, such as SurBitcoin, Tigo or Cryptobuyer, are experiencing a boom in popularity.

Another weighty reason why it is necessary to make the crypto currency accessible to the masses is the relationship between Russia and Ukraine, whose citizens know little about the digital currency.

Due to the complexity of the relations that have lasted for several years, the payment channels between the countries have actually been cut off and the residents of these two countries can not transfer money to each other.

And since people need such operations, crypto-startups are looking for a new approach that could improve the situation and help ordinary people.

A striking example is SibCoin, a crypto currency, which positions itself as 'a project that makes the crypto currency closer to people.' This approach is very different from the method used by BitPesa.

Suppose a resident of country A wants to send money to a resident of country B, all he needs to do is buy the required number of SibCoins tokens, and that's pretty much everything.

All that else the sender has to do is specify the recipient's phone number and come up with a password, which is then sent to the receiving party using any messenger. The recipient receives a text message containing a link to the project website where he must enter the password and select the desired method of receiving money (cash or credit card).

It is noteworthy that the recipient receives the amount in local currency, which frees him from having to go through a lengthy process of converting crypto currency into local currency.

However, this method is at the development stage, and according to its readiness, the service will require the involvement of many third-party exchanges and exchangers, otherwise the whole project will never work as it should.

Not only start-ups want to saddle so popular blockchain technology.

One of the largest payment systems in the world - Visa - has concluded several deals with technology companies to develop a blockchain-money transfer solution.

In 2016, Visa entered into a partnership with the BTL Group to introduce blockchain technology into interbank transfers, while Visa Europe and bitcoin-startup SatoshiPay have already developed a joint crypto-exchange project for micropayments through gadgets connected to the Internet.

This once again underscores the fact that the problem goes beyond the issue of accepting a crypto currency.

The growing need to create a method that would make possible quick and inexpensive transfers of money to any part of the world makes both small players and whales of the financial world look for new solutions.

Most of them, however, have to deal with crypto-currencies, because they offer speed and low prices, which can not be achieved with the use of traditional methods of translation.

The wide recognition of the crypto currency, today, looks like an unrealizable ideal, or a matter of a distant future. It is most likely that the industry in its further development will try to combine the advantages of the old and new approaches, and the examples examined here can be the forerunners of the killer application, which ultimately revolutionizes international finance.

However, such a decision has yet to be found.

Source: https://bitnovosti.com