Biyapay remittance— Remittance business around the world continues to attract the attention of enterprises, Blockchain will be the future
In 2019, the value of the global remittance market was $554 billion, and it is expected to drop to $470 billion in 2021 due to the impact of COVID-19.
Nevertheless, there is still a lot of money moving around the world, often by some of the lowest paid overseas workers. “If the cost of remittances could be reduced by 5%, the recipients of remittances in developing countries would receive more than $16 billion a year more than they do now,” the WorldBank said.
So it’s no surprise that many companies are targeting the global remittance market, and some are less successful than others.
With its ICO, Humaniq stepped into the crypto market in 2017 (once valued at $95 million, but eventually fell to the current level of around $2 million) and has almost disappeared, even though it was dominating in the past. Others are more successful, such as BIYAPAY, which business is growing fast and can be used in more than 60 countries. In 2019, the company proposed and started providing exchange services between USDT and USD in the Asian markets, and successfully obtained US $5 million of commercial investment. It is expected in the future that it will carry out share tokenization for its ecosystem, which you should see differences from ICO.
Recently, the CELO blockchain was designed to allow international transfers via mobile phones at a fraction of the usual global transfer costs. In February 2021, CELO announced that it had raised $20 million, positioning itself as a way to expand and promote financial inclusion, and even successfully attracted Andreessen Horowitz as an investor. Then, in April 2021, Dodge Telecom announced that it had joined 130 other companies that were part of the CELO alliance and had purchased an unknown number of CELO tokens. Interestingly, in issuing this latest statement, CELO also reminded publicly that “the resources used to run CELO networks are carbon neutral”, which once again demonstrates the importance of organizations in proving their ESG qualifications.
In June 2019, Facebook attracted not only the attention of the encryption market, but also the attention of central banks, when it announced that it was also seeking to create its own digital coin (later renamed Diem) to enable people to remit money faster and cheaper than using banks. Facebook has 2.6 billion active users a month (more than three times the population of the G7 economy), and its size and balance sheet are enough to support the cryptocurrency market. There is no doubt that Diem has not been authorized, and central banks around the world are frantically studying how to establish their own CBDC. Meanwhile, Diem decided to move back from Switzerland to the United States and set up a joint venture with Silvergate bank, which has agreed to start using Diem. If Diem can launch ecological deals with Facebook users and companies advertising on its platform, it could seriously undermine the use of currencies in many other countries. So how long will it take for Facebook to start offering Diem payment to 2.6 billion users?
In the past, remittance services were traditionally provided by banks, but now there are a number of other remittance companies. Interestingly, these are just some of the choices in its ecology. Competition from companies such as BIYAPAY or CELO charges only 1% for each transaction, which means that enterprises need to use blockchain technology and automation of large databases as much as possible to remain competitive. Therefore, the attraction of blockchain technology and the use of cryptocurrency in smart contracts are extremely important. Many paper documents and manual checks are cancelled; Instead, it is recorded almost in real time on a constant ledger, which can be used by anyone who has the right to check if necessary. This makes the global remittance business more transparent.
