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Author Topic: [IDEA]International cash transfer  (Read 643 times)
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June 09, 2012, 10:26:11 PM


Today I saw the scheme of the first project idea I had in relation to bitcoin and for this there forgotten, share it with you

Arose from some news about the blocking of sending money to certain countries.

My idea was to create something like Western Union bitcoin based . Thus, anyone can send money to your country immediately for more small that are the amount.

My approach:

=> "A" wants to send $ 10 to B

=> It comes in the change point and buy $10 of bitcoins at market price+x% and sent to the destination address.

=> The sender has the ability to choose a frozen change, so that B always receive at price which it was purchased, although in the time of withdraw has changed. This allows you to generate extra profits to the platform, in case of positive variation, the difference goes to the operator and if negative variation would have an acceptable range of "lost" before disabling this option to avoid real losses.

=> When B wants to withdraw their funds, these are sold at market price-x% or the price freeze and withdraw cash.

The most obvious problem is that cash on the problematic side would have to come from somewhere, so it would have to have some other investment that would allow access to cash at that location.

The operation is transparent to the user.

1) "A" chooses the exchange rate and enter the cash in the terminal (ATM type) and defines the destination.

1.1) The local server validates the operation and emits the buy order

2) The central server makes the purchase

3) The recipient requests the withdrawal of the deposit

3.1) The local server validates the operation and sends the sales order

4) The central server sells the amount of deposit

5) Confirm the operation to the local server

5.1) The terminal delivers cash to "B"

As withdrawal and deposit of funds in the market can not be done immediately, the accounts associated with this service would have a stock in bitcoin and dollars to those who would operate hot.

Thanks for reading;)

Sorry for my bad english Wink
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June 10, 2012, 02:29:32 PM

Using a frozen exchange rate will expose the company to losses by adverse selection. When the rate improves for the user they will/could go to another merchant and only use this company if the rate moves against them. Like you said you can limit it, but then the service doesn't work for the user when it matters most.

You could have the sender send directly to an address given to the receiver that corresponds to some code the receiver can use only for getting local currency in the amount fixed at time of bitcoin transfer.

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June 10, 2012, 04:13:45 PM

I have read a wikipedia article on something like that. That was a medieval ages quick, efficient and not really legal system to send money on distance quick.
On the other hand - isn't it very much like our days exchanges work? You can trade BTS against USD, EUR, AUD and others?

The whole process could be smoother and quicker than today of course.
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