SureRemit launches a cryptocurrency for global non-cash remittances

SureRemit, a global blockchain-based non-cash remittance service announced a token sale event to allow investors to contribute to SureRemit and receive RMT tokens at a 40 % bonus.

A big argument for the potential of blockchain and cryptocurrencies has been about how the revolutionary technology can impact the $600bn cross-border remittance market.

“International remittance transactions can be frustrating, but it doesn’t have to be, at least for non-cash value transfers which constitute about 40% of all transfers,” said ‘Laolu Samuel-Biyi, Director of Remittances at SureRemit. “In very many cases, immigrants and travellers just want to buy food or pay a bill for someone at home. Those transactions do not have the same risk profiles as cash transactions, and they should not be subjected to the same costs, timelines and procedures.”

There are over 250 million immigrants across the world. A significant volume of money sent by these immigrants is intended to serve specific needs of their friends and family at home like food, clothing, utility bills and education. Senders utilize a myriad of formal and informal channels to move money, but while there have been improvements in recent years, the international money transfer process is far from convenient.

Cash transfers are heavily regulated in order to prevent money laundering, fraud and terrorist financing, so the systems and intermediaries involved are forced to create elaborate compliance processes that result in high fees and less-than-ideal transaction flows. Furthermore, after sending money home, immigrants have no control or visibility over the use of funds.

A new blockchain-based remittance service is being created to address this. Immigrants all over the world with Remit tokens can purchase digital vouchers that are redeemable for goods and services directly from local merchants at their specified destinations. This cryptocurrency removes the cash layer, reduces the cost of transfers and provides the sender with some control and visibility over how the value is spent.

Remit tokens are being issued in partnership with Stellar. The tokens generated will be the primary tool for accessing digital shopping vouchers, utility bill payments and mobile airtime services within the SureRemit app.

SureRemit already has access to over 500 redemption points of major retail chains within the SureGifts merchant ecosystem across Africa, with partnerships to acquire thousands of ecosystem merchant partners in India and the Middle-East in the works. Expansion into other major remittance corridors is planned for next year.