how blockchain can solve remittances problem

Remittances are the transfer of money transfer from one country to the country of origin of the sender, remittances in some countries like Tajikistan is up to forty percent of their GDP. The value of remittance money loses about seven to eight percent when receiving because of the low exchange rate and fees from money transfer operators. Transferring via bank transfer is slow and it makes up to three days making the value of money fluctuation (Foreign exchange risk) higher. Money remittances using your own computer or mobile phones is actually cheaper and faster, making a money transfer from applications, software or in the website will be the better choice for transferring money. But using such a platform is abuse and sometimes use as a way to launder money. Electronic money is the number choice of money launderers. Last 2013 liberty serve a popular digital money whose serving millions of customer around the world was seized by the government due to money laundering issues. More than 6 billion dollars’ worth of illegal transactions were obtained, Arthur Budovsky the creator of liber reserve were sentence twenty years in prison and some of his workers were arrested, the website was frozen and some of the legitimate users like EPay Tarjeta lost funds because of this incident.

Knowing the problems I found an ICO that may change the problems occurring with remittances introducing Chynge “World's First Payment Token with No FX Risk”. Chynge uses the Stellar protocol with a lightning network for instant transfer. It works by sending fiat money the platform then convert the fiat to CLPX token then covert it to Fiat to the receiver instantaneously. All transaction is written in the in a ledger for transparency. Instead of putting the FX risk or exchange risk to the customer the Chynge platform will cover the risk.

Chynge uses Nostro accounts or pre funds for transfer if a customer from the UK wants to send money to Japan the receiving customer from Japan will get the money from pre-fund in Japan for an instant, "zero fees" and no exchange risk involved. Chynge system automatically replenished Nostro account in case of lack of balance.

Chynge will use AI and business rules to detect fraudulent transactions, using smart compliance filtering suspicious transfer will be automated it will be fast and efficient. Transfer for funds for illegal activity like money laundering, terrorism funds, and scams will be halted.

Chynge is already licensed with five countries: Hong Kong, Singapore, Brunei, United Kingdom, and the United Arab Emirates. And some partnership with some known money remittances in some countries like Cebuana Lhuillier in the Philippines, this is the place where I converting my cryptocurrencies into fiat.

The advantage of the Chynge platform over traditional cryptocurrencies
Unlike bitcoin or Ethereum which has transfer fee’s Chynge has none. To transfer cash via bitcoin or Ethereum the most common route is to buy bitcoin but with a higher price due to exchange getting profit from it. After than transfer Bitcoin or Ethereum to another exchange then the person who going to receive need to convert it to fiat again but with lesser value due to exchanges getting profit from it. Doing this process the value of the money loses about three to eight percent depending on exchanges and network fees.

Benefits for token holders/investor
Because the demand for money transfer is high and the CLPX is limited expect the value of CLPX to increase as more customer uses the service.

Coins details:
Platform: Stellar
Coin symbol: CLPX
Total supply: 32 billion

for more information:
https://www.chynge.net/

Author: Gawer33
https://bitcointalk.org/index.php?action=profile;u=1690431
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