Another disruptive technology powered by the Blockchain is set to completely eliminate the outrageously high cost of remittances to Africa.
Coin Telegraph Spoke to Kumar Gaurav, Cashaa’s co-founder & CEO, about how the application can solve Africa’s exorbitant cash transfer transaction costs. On average it costs 10-12% to wire cash to Africa, where there is an estimated 80% of the population without access to banking. This is compounded by the lack of a transparent exchange rate. Needless to say many African households depend on remittances from the diaspora. In fact, in some countries remittances dwarf foreign aid.
Cashaa is a peer-to-peer marketplace which enables free cash transfer powered by the Blockchain which can use any kind of digital token or cryptocurrency. The remittance application model is based upon connecting private individuals who wish to send and receive money anywhere in the world. A network of cryptocurrency traders accept the physical cash from the sender in one location and give it to the receiver in another location. Traders then exchange the cash through buying and selling their cryptocurrencies.
The money transfer requests are selected and matched through a live bidding process by cryptocurrency traders. Though Cashaa is powered by Bitcoin traders, the platform is cryptocurrency neutral and can eventually operate through whatever digital currency or token the traders prefer. It enables priority money transfers 24/7 in real time, with a transparent exchange rate. This free money transfer service, along with other features, is one that the cash remittance industry has not seen until now.
Merging two markets
Coin Telegraph asks Kumar Gaurav, Cashaa’s co-founder & CEO, about how the application can solve Africa’s exorbitant cash transfer transaction costs.
“We consider ourselves as an Uber of the cash transfer industry. Cashaa is the first to solve the problem of the single geographical focus by making the cash delivery and entry points peer-to-peer. We developed this innovation by merging two unique markets. Without an official launch of our MVP we already have more than 10,000 plus cash-in/out points in 1040 cities, with this growing day by day.”
CoinTelegraph: Is Cashaa a solution to the excessive cost of remittances to Africa?
Kumar Gaurav: Yes, according to the reports of the World Bank, Africa is one of the most expensive areas in the world to both sending and receiving cash and, at the same time, is one of the fastest growing areas in the world in terms of the penetration of smartphones. Currently, cash remittance institutions are maximizing their efforts to exploit every dollar which is sent or received from Africa. At Cashaa we want to disrupt their plans by starting with a zero fee model to this continent.
CT: Did you specifically design this with Africa in mind?
KG: Cashaa’s mission is to provide an empowering platform which facilitates cash transfer with as low a fee as possible to all countries across the globe. Africa is one of the areas where I believe this mission can be accomplished due to the high demand and extortionate current fee structure. This marketplace will get the maximum advantage through Cashaa’s system ultimately saving ordinary people billions of dollars, which are currently lost in fees.
Wonderful Consept and brilliant use of blockchain transactions. Though I'm not sure how they could do this for Zero transaction free and the imbalance of the flow of money into some areas could lead to local cash liquidity issues. But im sure they'll work out the details.
Source: https://cointelegraph.com/news/cashaa-uber-of-money-transfers-revolutionizes-cash-remittances-to-africa
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