BitFlex FinTech x KotaniPay | Driving Blockchain Remittance in Africa | Zimbabwe 🇿🇼
Remittances play and important part of every Economy
The earliest and most promising applications of blockchain technologies have always been cross-border payments. Remittances now account for the largest flow of funds into poor countries, surpassing both foreign direct investments and government development assistance.
Simply put, it is the transfer of cash generally between people that live in separate geographic regions. It has the ability to affect people, businesses, and the larger economy of the nations to whom payments are sent, making remittances a significant part of their economies.
However, there are now a number of significant barriers to remittances being paid through traditional banking channels.
Current Issues in the Remittance Industry
It is critical to learn about the challenges with the present remittance system in order to comprehend the use cases of blockchain in the remittance business.
Third-party intermediaries and financial institutions are used by the majority of remittance sectors.
Blockchain remittance business’ main purpose is to streamline the entire process by eliminating superfluous intermediaries. The goal is to develop payment solutions that are both frictionless and practically instantaneous.
Instead, a blockchain system, which is built on a distributed network of computers, may conduct global financial transactions. The major purpose of blockchain remittance providers is to make the procedure as simple as possible.
A Near-Term Solution: Blockchain
Blockchain technology, unlike traditional remittance techniques, completely transforms the way foreign payments are made. This is due to the fact that blockchain provides a fast, transparent, and secure means to make international payments. It uses a distributed network of computers to conduct global financial transactions which has the potential to make the entire transaction process easier.
BitFlex FinTech and KotaniPay have joint forces to solve this problem for the average Zimbabwean by removing unnecessary intermediaries and offering nearly instant payment solutions..
HOW?
By developing a USSD Wallet that enables users to convert cryptocurrencies namely Celo Dollar to local fiat directly to their mobile wallets.By leveraging smart contracts and decentralized protocols, the average Zimbabwean can now send and receive money anywhere in the world using stable-coins such as USD Coin (USDC) , USD Tether (USDT) and Celo Dollar (cUSD) which can be converted to local currency in an automated Peer to Peer (P2P) manner.
The present remittance system, which is unjust and expensive might be disrupted by blockchain. Both the sender and the recipient may use blockchain to follow the money movement and determine whether the payments have arrived at their destination through a distributed ledger.
Blockchain + Mobile Money Wallets
Combining blockchain technology with mobile money wallets might result in a novel way to transfer and receive money throughout Africa. It can lead to the absence of intermediaries or central agencies, as well as a reduction in high fees and settlement turnaround time.
Know Your Customer (KYC)
By storing the client’s details on the blockchain platform, where the information can be saved, retrieved, and accessed whenever needed, and avoiding duplication, blockchain can further ease Know Your Customer regulatory obligations.
ALL in ALL
Remittance is a lifeline for millions of people throughout Africa, especially in rural regions, and blockchain has the potential to completely disrupt the old remittance economy. Although it provides a lot of benefits for the business, it still has a long way to go in terms of rules and complexity before it can be widely used.
BitFlex FinTech and KotaniPay aim to lead the way in Blockchain remittances in Africa.
