LONDON, April 25, 2018 /PRNewswire/ --
Global remittances represent one of the major international financial resources and a major source of revenue for the world's poorest countries. Official remittances - remittances to developing countries - raised by 4.8% in 2017, reaching $450 billion. Global remittances, which include flows to high-income countries, raised by 3.9 percent to $596 billion.
The legacy remittance industry has been long dominated by cash, which requires physical locations where customers can hand over or collect money. Still in the digital world, companies like Western Union, MoneyGram, Ria are controlling a bulk of the industry. The comfortable hold that these companies have on the industry is now being challenged by digital remittance startups. Digital-first remittance companies like Azimo and Transferwise are competing on fees and usability and capitalizing on the way people's expectations have changed with the advent of digital and mobile channels.
The Global Money Transfer Summit is the most recognised conference in the money transfer industry and the place where X-border payment industry leaders gather to examine the areas that are having the biggest impact on the remittances. GMTS-Dubai 2018 will bring together a global network of innovators, disruptors and established participants in the remittance industry; all the stakeholders that are driving the world of the X-border payment industry and the financial services like US Treasury, World bank, Bank Negara Malaysia, Ria, Paykii, De Nederlandsche Bank, Moneygram, and many other Central banks also be the part of the discussion.
The recent emergence of blockchain technology is now seen as game-changer and is being used to modernise the process that international remittance is sent and has been bandied as a solution for the underbanked. Without the middleman taking a cut of the remittance pie, the cost to send money overseas will be a lot lower.
Furthermore, a blockchain is impenetrable for fraud and more secure than banks' existing technology. The weakness of banks comes from their centralization, which makes hacking easier. In contrast, a blockchain works as a digital ledger where all transaction history is stored and which is replicated across a network of participants.
For the first time in GMTS, the potential of blockchain technology will be discussed. Cashaa, Ripple and Stellar have been invited to the GMTS-Dubai 2018 to discuss the future of the money transfer industry. Ripple was founded by Chris Larsen and Jed McCaleb and operates underlying payment processing solutions with native assets. Ripple is a real-time gross settlement system, currency exchange and remittance network. Ripple is based around a shared and public database or ledger, which uses a consensus process that allows for payments, exchanges and remittance in a distributed process. Used by companies such as UniCredit, UBS and Santander, Ripple has been increasingly adopted by banks and payment networks as settlement infrastructure technology.
In 2014 after McCaleb left Ripple to work on Stellar, the split led to the creation of new and philosophically distinct entities. Stellar is a platform that connects banks, payments systems and people to move money quickly, reliably and at almost no cost, leading to more access for individuals, lower costs for banks, and more revenue for businesses. Stellar is an open-source protocol for exchanging money; servers run a software implementation of the protocol and use the internet to connect to and communicate with other Stellar servers, forming a global value exchange network. Each server stores a record of all "accounts" on the network and these records are stored in a database called the "ledger".
While Ripple and Stellar solutions are targeting large banks and could be an alternative to SWIFT, Cashaa is working on solving the problem of sending money to individuals. Cashaa was founded in 2016 by Kumar Gaurav, to demonstrate the power of blockchain technology in real-world use cases. Cashaa has been at the forefront of modernising how money transfer and payments for individuals and businesses are achieved. Cashaa's banking wallet will enable anyone to store and send money to any card, digital wallet or bank account in over 200 countries, in local currency through its network.
Cashaa is built on Auxledger, an enterprise-grade blockchain infrastructure that currently powers applications across different governments and huge enterprises such as IBM, HP, etc. Cashaa's vision and main goal is to build the payments and banking infrastructure for the future and to become "The Next Generation Banking Platform for The Next Billion". With the advent of blockchain technology, companies are not holding back in adopting this new technology to enable remittance services to solve multiple issues such as high transfer cost, limited money distribution methods, limited brand options, limited ways to deal with money, etc. The future of remittance relies on technological advancements and blockchain companies such as Cashaa, Ripple and Stellar are now becoming part of main industry decisions to change the future of money transfer, which is a need of billions of people worldwide.
Cashaa is creating a better bank, challenging legacy banking by building an app and products with input from our community of users. Our blockchain based platform enables its community to store, save, spend, receive, borrow and get insured, with a simplified user experience in a legally compliant way. Ultimately, Cashaa aims to become a one-stop-shop for financial needs.