Thanks a lot   

I can see BTC being paired with fiat for short term. I can even see in short term a traditional MTO offering to convert BTC in to cash for you, just like Bitpesa. A friend of mine works for one the largest MTO's in the world and he told me that cryptocurrencies are something they regularly discuss during meetings and they definely are aware of the advantages & disadvantages of trading in cryptocurrencies. They are more concerned with the volatility of BTC and how certain banks might behave when they start trading in BTC. You can lose banking services from your house bank if they find out that you deal in BTC. Even Bitpesa has diffuclties doing international transfers in fiat.

To come back to cuddaloreappu's question regarding underbanked people in India. There is a solution I am working on right now, and that is convincing MTO's to accept Bitcoins from senders and convert in to fiat and pay out the recipient in cash. Recipient would only need to show passport and mention code (just like western union).

service should work like this

MRC=money transfer operator
1.   Sender logs in on website or first time members register on website (copy passport + proof of residency)
2.   Sender fills in who the recipient is >> location identified >> address for local MRC assigned/created
3.   Sender sends x amount of BTC to assigned address of local MRC
4.   MRC receives and accepts signal of incoming assignment and verifies sender’s ID & requests
5.   MRC pay’s out recipient in cash  
6.   MRC sells BTC @ exchange and gets credited in fiat on bank account

I need to work out the AML/KYC part, security and some other stuff before I can approach MTO's.

if someone has advice or input then please let me know.

 I could send some BTC to my relatives in Kenya and Somalia, but what's the point if they cannot spend it? What we need to see in Africa (other regions as well) are more pay out locations so that Africans have options to hold or sell their BTC. More pay out locations leads to more incentives for businesses to ask for BTC from customers.

C'mon guys make it rain on CryptoALTeX.... I want to buy this coin.

YEAH!!! up up and away!