Blockchain’s emerging role Remittance
The global remittance market grew by 10% in 2018 and is projected to grow to $1.035 trillion by 2022 and $1.413 trillion by 2025
Western Union dominates legacy cross-border money transfers with $78 billion annually, in 200 countries, and with over 500,000 agent locations
Forecast growth of global remittances market inflows, (in US$ billions)
Remittance inflows as a share of GDP in 2018 (%)
Social and economic impact
The future is bright for progressive versions of remittance
Innovation tends to be customer-focused, providing a new product or an alternative way of doing value-added things more conveniently. Throughout the history of mankind, we have always been upgrading or improving any existing methods. It is the only ‘currency’ that has been empirically proven to increase over time.
Big corporations are looking to partner with Blockchain startups to empower the evolution of remittances, to us the disruptive benefits in global- settlement systems, multi-use payment and storage applications, crypto billing, lending, FX transfer, and credit scoring. Blockchain based transactions are on average 388 times faster and 127 times cheaper than traditional remittances.
Leading use cases for blockchain being explored
MoneyFi will essentially be an ecosystem of various financial services, with main focus on the app that consists of a wallet and an exchange for the ease of currency conversion for their global remittance system. The transfer of money will be cheaper and fast because it will be processed through Blockchain technology via the Stable Coin Nemoo.
MoneyFi is a Special Purpose Vehicle under the Odyssey Group, a retail banking support organization active in the US, Argentina, Spain, and Italy. The company provides Vending Machines (1,000+ deployed) and ATMs (600+ deployed) with their proprietary Octagon Network, a transaction processing platform that manages its ATM network. The group has pre-agreements to install 4,000 ATMs over the next two years. Their ATMs are one of the very few that serves Ethereum and Litecoin. With the number of Bitcoin ATMs increasing, Odyssey is primed to tackle the huge global remittance industry with its innovative ATM solution. Odyssey has recently acquired an Argentinian Bank, a ATM Manufacturing in Mexico, and a Credit Card Manufacturer to expand its operations and supports in MoneyFi’s product offering.
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Sources: Investopedia, Blockdata, Worldbank, KPMG, Accenture, IWS FinTech