While the math-based currency does lower the bar of entry for startups, and local technological innovation could further improve the competitive advantage of so-called “rebittance” companies, Buenaventure argued that most of the cost is currently made in “the first and last mile.”
While Bitcoin does a great job realizing cross-boarder transfers of money, the distribution of physical cash was the expensive part of remittances all along – a problem Bitcoin hasn’t solved.
The first and the last mile
Most rebittance startups agree with the main premise as presented by Buenaventure. Bitcoin does not make rebittance cheaper – at least not yet. All four companies acknowledged that the bulk of the cost is made in the first and the last mile, the part of the remittance process that doesn’t really involve bitcoin. As such, rebittance startups are not particularly well positioned to compete with existing