Blockchain Remittance Service SureRemit Launches ICObr>
Nigerian FinTech startup SureRemit will be conducting an initial coin offering (ICO) to fund its blockchain-based remittance service, targeted at a potential 250 million consumers for non-cash payment. The ICO will take place on January 10.
The new blockchain-based remittance service will enable senders to purchase digital vouchers using Remit (RMT) tokens that can be delivered to billions of their recipients across the world instantly via SMS or e-mail. The vouchers can be spent directly for goods and services from SureRemit’s ecosystem of partner merchants within their community.
SureRemit explained that 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. The company said its Remit token removes the cash layer, reduces the cost of transfers and provides the sender some control and visibility over how the value is spent.
RMT will be a utility token built on the Stellar Network, an open-source protocol for exchanging money. SureRemit stated that they chose Stellar because they have the same vision of providing better and innovative financial services to the underserved markets.
“International remittance transactions can be frustrating, but it doesn’t have to be, at least for non-cash value transfers which constitute about 40 per cent of all transfers” said Laolu Samuel-Biyi, director of remittances at SureRemit. “In very many cases, immigrants and travelers 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.”