When Bitcoin was first invented, many hailed it as the solution to inefficient cross-border remittances. But due to the high fees associated with transactions on the BTC Core network, it was never able to reach its full potential.
That is why Kumaraguru Ramanujam chose to rely on the Bitcoin SV blockchain instead. His candidacy, MoneySwipeaims to reduce the cost of sending money abroad from the current global average of 7% to just 1.5%.
He explains to Charles Miller on this week’s episode of CoinGeek Conversations that the company aims to tackle the UK-India remittance corridor first. This makes a lot of sense as India tops the list of countries receiving personal remittances. According to a 2022 World Bank reportthe colossal sum of $83 billion is sent back to the country every year in payments.
Ramanujam’s plan is to work with regulators in India to create a cross-border payment solution without high costs. He explains that the Reserve Bank of India (RBI) has set up a regulatory sandbox with the aim of finding companies using blockchain to bring efficiency to the billion dollar remittance industry. .
The sandbox opened in 2018, with a company using Hyperledger Fabric selected, but it has now reopened, and Ramanujam is keen to show RBI the power of S.V. Bitcoin.
“We show the regulator first that BSV is better than Hyperledger, and then we show them, okay, yes, value transfer can happen as well,” he said.
The introduction of an efficient remittance system like this would be a game changer for the Indian economy. If the costs could be reduced to 1.5%, that would mean that over $4 billion could be saved and go directly to the beneficiary, instead of being lost in fees. This would also benefit the government as it would receive more foreign exchange reserves.
“It’s a win-win situation and it’s a stated goal of the UN sustainability goals to lower remittances from 7% to 3%,” Ramanujam points out.
When the application is powered by the BSV Blockchainstablecoins have been enabled so that they can be used as a bridge asset, to provide liquidity and to comply with regulations.
The final application, which will be launched by the end of the year, will inform how MoneySwipe engages with regulators. The hope is that by working closely with them, the end product will be innovative, relevant and risk-free.
For now, the focus is on India and the corridor with the UK, but once this has been developed, he intends to look to other regulators to create solutions for remittances that work with governments around the world.
Ramanujam thinks being able to demonstrate experience working with a regulator will make it easier with others.
“We want to work with the regulator who is open with their policies right now, rather than telling them that’s the way things should be done – so we’re looking at countries that are open right now with sandboxes “, did he declare.
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