Rebittance Startups Agree: Bitcoin Does Not Make Remittance Cheaper (But Does …

Rebittance Startups Agree: Bitcoin Does Not Make Remittance Cheaper (But Does … co-founder Luis Buenaventure recently published a blog post on Medium claiming that Bitcoin does little to help cheapen remittances.

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.

To find out if Buenaventure is right, Bitcoin Magazine took the pulse of four other rebittance startups: Bitex, HelloBit, SatoshiTango and Volabit.

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

Read more ... source: TheBitcoinNews


Read previous post:
Bitcoin Price Reattempts The Highs

Bitcoin price had declined according to expectations yesterday, only to fling back to near its price highs today. The verdict...