This document discusses using bitcoin for international payments and remittances. It notes that bitcoin adoption is growing in developing countries to avoid inflation of local currencies. While interest is increasing, there is no collaboration between local bitcoin exchanges. The document proposes creating a Bitcoin Remittance Association to combine multiple on and off ramp services into a bundled solution. This would standardize APIs, compliance practices, and allow for joint marketing. The goal is to provide cheaper international payments costing less than 1% in total fees and saving millions.

1. Bitcoin for
cross border payments
and remittance
19 may 2016
Prepared by George Basiladze,
founder of

2. Where are they spending all these bitcoins?
0
50,000
100,000
150,000
200,000
250,000
300,000
BITCOIN NETWORK IS BOOMING

3. NODES DISTRIBUTION

4. NODES DISTRIBUTION

5. TRENDS
Growing Interest to bitcoin as savings
mechanism from developing countries to
escape inflation of local currencies.
Booming market of local bitcoin
exchangers with local payment options.
No real collaboration between exchangers
and exchanges.

6. INTERNET PENETRATION

7. INTERNET PENETRATION

8. TRENDS
Internet penetration will boost bitcoin
adoption and use.
Tough capital controls will drive the
interest towards bitcoins as a payment
mechanism.
Excellent opportunity for remittance on
top of bitcoin.

9. PAYMENTS AND SETTLEMENT
User 2
Instant buy Instant sell
Instant buy
User 1
Instant sell
On-ramp local operator Off-ramp local operator

10. COMPETITION
Transaction fee £6.99 £5 £5 £1
Exchnage rate 66.0780 66.4151 66.9191 66.1515
Total receive 6,607.8 6,641.5 6,691.9 6,549.0
FX markup 1.56% 1.05% 0.29% 1.45%
Total fees 8.55% 6.05% 5.29% 2.45%

11. PROBLEM
Users have no seek local buying services
and many of them lack reputation.
Users have to educate their counterpart
on how to use different unlinked
services.
Full bid/ask spread is paid. On top that,
price volatility can kill savings.
The whole process can be confusing and
messed.
Uncertain regulatory framework.

12. BITCOIN REMITTANCE ASSOCIATION
Combining several on and off ramp
services in a bundled solution.
Fee generation/split.
No central entity required, only
software.
Will cost less than 1% in total fees.
Will save millions in case the right
partners are found.

13. WHAT ARE THE COSTS
Market making
Local payments
Technology
Compliance

14. TO DO?
Harmonized API platform.
Same compliance/AML/KYC standards.
Joint efforts in marketing.
Economies of scale.
More integrations and remittance
corridors.

15. THANK YOU