With the growing use of crypto’s as a mode of remittance comes along its own advantages and disadvantages. One such major disadvantage is the price volatility involved with the crypto prices during transit
Currently, the options available to the people to make overseas transfers are not perfect. On one hand where is the costs are high when a remittance is completed via a traditional bank, on the other hand, a completed different issue is associated with a remittance when crypto is used. Due to the fast and aggressive movement in the price of the crypto assets right from Bitcoin and Ethereum to lesser-known altcoins, a sudden drop in the price of the asset may reduce the value of a remittance intensely in a short duration, which basically means that the fiat converted to crypto for a remittance can be worth a lot less when it’s converted back to fiat at the other end.
To tackle such issues of price volatility seen when cryptocurrencies are used for remittances, Atom Solution, a Japanese fintech company has come up with an Equivalent Value Overseas Remittance system.
Atom Solutions is based out of Tokyo and the Equivalent Value Overseas Remittance System is scheduled to be launched at the beginning of March 2019. However, the company is inviting users to try the EVOR system before the launch of its official service.
Atom Solutions believes that this system which is also known as EVOR for short has the potential to eliminate this disadvantage in this high-value industry. Atom Solutions also mentioned that another advantage of using EVOR is that it offers “the lowest cost possible in the world” in terms of fees.
The pace at which these transactions will complete will be a driving factor to ensure that the value of the transfer made preserved.
Atom Solutions says that its main view is to make crypto usage more practical for everyday use and as such plans to offer a suite of financial services spreading beyond remittances.
It has also come up with a new digital asset known as Eternal Coin (XEC). By this, the company plans to allow its members to lend XEC to other users on a peer-to-peer basis. The lenders could earn interest on these loans as the company would pay a part of the transaction fees paid by the borrower.
Atom Solutions believes that this system of remittances launched by them is the first of its kind globally and also hopes that its products, combined with its multicurrency wallet and official exchange system, will help transform the industry for good.
As per the data by the World Bank the remittances to low- and middle-income nations hit a record high in 2017 touching $466 billion over a 12-month period, which saw a growth of 8.5 percent. This number touches $613 billion when the high-income countries are also included in the above list. India, China, the Philippines, Mexico, Nigeria, and Egypt topped the list where the remittances were sent.
With the remittances continuing to grow in the current year as well and how this money serves as critical lifelines for the recipients, Atom Solutions hopes that this system of their’s will assist the recipients to get more of this money without much in the form of excessive fees.