New Remittances System for Coping with Crypto Volatility When Making International Payments

A Japanese fintech company has unveiled a system designed to handle the price volatility seen when cryptographic curves are used for transmissions.

Atom Solutions says that there are currently opportunities for foreign workers who need to make foreign transfers imperfect. Although the cost may be high when attempting to complete transactions through a traditional bank, an entirely different problem comes at the forefront when crypto is used. Due to the wild market fluctuations – from Bitcoin and Ethereum to lesser-known altercoins – the value of a transmission may drop dramatically in a short time, meaning that fiat converted to crypto for a remittance may be worth much less when is converted back to fiat at the other end.

This is why the company has prepared the Equivalent Value Overseas Remittance System, which is known as EVOR for short. Atom Solutions believes that this product has the potential to eliminate decades of shortcomings in this high-grade industry.

As an example, let's imagine that someone in Japan wants to send money to a loved one over the Philippines. The company's multiple wallet will allow anyone making the payment to purchase crypto using Japanese yen before being transferred to the wallet for their relative in the Philippines. This then comes in the local fiat currency ̵[ads1]1; helping to reduce costs by facilitating foreign currency risk.

The rate at which this transaction takes place is a decisive factor in ensuring that the value of a payment is preserved, and Atom Solutions says another benefit is how EVOR offers "the lowest possible price in the world" in terms of fees .

A series of financial services

Atom Solutions says it wants to offer a range of financial services that extend beyond transfers, all aimed at making cryptos more convenient for everyday use.

It has created a new digital resource known as Eternal Coin (XEC). In addition to playing an instrumental role in the remittance process, the platform also plans that the community can lend XEC to other users on a peer-to-peer basis. They wanted the potential to earn interest on these loans by getting a portion of the transaction fee paid by the borrower.

In general, Atom Solutions says that the concept of transfers is something that has never been implemented in the world before. It hopes that the products, combined with their purse and the official exchange system, will help change the industry for the better.

Payments on the rise

World Bank data surrounding transfers to low and middle income countries helps to paint a picture of why the reform is needed. The independent group recently said that transfers were record high in 2017, increasing by 8.5 percent to $ 466 billion over a 12-month period. When you include the money that flows to high-income countries, this figure goes on to $ 613 billion, an increase of 7 percent. Regarding the areas where most transfers were sent, India, China, the Philippines, Mexico, Nigeria and Egypt topped the list.

Transfers have grown further in 2018, told the World Bank and given how these sums of money often earn as the vital lifestyle of the recipients, Atom Solutions hopes that the concept will help them access more of this money without losing money to exorbitant fees.

Atom Solutions is based in Tokyo, and the Equivalent Value Overseas Remittance System is scheduled to launch in early March 2019. The users are now invited to try EVOR Simulator before launching their official service.