HENDERSON, NV / ACCESSWIRE / July 24, 2015 / MarilynJean Media Interactive (MJMI) announced today its plans to enter the multi-billion dollar remittance market using Bitcoin to effect transfers.
According to the World Bank, sending money internationally, or remittance transactions, were valued at over $580 Billion in 2014 and are expected to exceed $608 Billion in 2015. The World Bank estimates transaction fees to average 7.99% of money sent, making for a staggering $50 Billion in potential fees for participants in this year's remittance business.
Most remittance transfers are from developed countries to developing ones, sent primarily by migrant workers. Currently, most transactions are done through brick and mortar institutions like Western Union (NYSE:WU) and Moneygram (NASDAQ:MGI). These type of companies make money by charging an often invisible fee on the currency exchange portion of the transaction and high transfer fees to send and receive the money.
Within the existing financial system, Bitcoin's most disrupting feature is its decentralized architecture. A vaster international network of P2P computers provides multiple layers of verification for each transaction using cryptography. All transactions are registered in the publicly viewable blockchain so that users can’t transact with bitcoins they don’t own. This final level of security previously required a third party, typically a bank.
In a Bitcoin remittance transaction, a user would purchase Bitcoins via a Bitcoin exchange then send the Bitcoins to a Bitcoin remittance company who would then send the money to the receiver. Each step would be completed electronically within minutes.
The bitcoin network has the potential to effectively replace financial institutions and banks in the remittance market. Transfers are virtually in real time, often completing in less than 10 minutes, with ultra-low costs, typically limited to the fee for using a Bitcoin exchange, which averages 2%. In addition, Bitcoin remittance transactions can be easily completed using mobile devices which are now widely available in developing countries.
Challenges for Bitcoin and other crypto-currencies in the remittance market include the differing ways such currencies are regulated internationally and the costs associated with compliance in multiple jurisdictions. As a fully reporting, publicly traded company, management believes both regulators and users will be comparatively more confident with MJMI's participation in any regulated markets.
MJMI is currently exploring partnering with several existing Bitcoin exchanges as well as manufacturers and operators of Bitcoin ATMs. Such a combination would place the company in an exciting position to offer an end to end solution and potentially capture a share of this lucrative market just as it is poised to undergo a massive shift into the digital realm.
Peter Janosi, MJMI's president said: "With legacy remittance companies and traditional banks continuing to charge high fees while hiding other fees via poor exchange rates, it's hard to see a future where they will continue to be relevant."
About Bitcoin and Crypto-Currencies
Bitcoin and other crypto-currencies are a medium of exchange using cryptography to secure transactions and control the creation of new units. Bitcoin became the first decentralized crypto-currency in 2009. Crypto-currency is produced at a rate which is defined when the system is created and publicly known. By contrast, in centralized banking and economic systems, such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units or demanding additions to digital banking ledgers. However, neither companies nor governments can produce units of crypto-currency and as such the value of crypto-currencies are completely based on supply and demand, free from any governmental control. Many people believe crypto-currencies, and in particular bitcoin, hold the promise of being the most significant advancement in global finance in modern history. The advent of bitcoin creates a secure, easily accessible and transferable transnational currency that is completely liberated from political influence.
Richard Branson, head of the Virgin Group, is quoted on his company's website as saying: "I have invested in Bitcoin because I believe in its potential, the capacity it has to transform global payments is very exciting."
Heavyweight investment bank Goldman Sachs (NYSE:GS), announced on April 30th 2015 that it had partnered with Chinese investment firm IDG Capital partners to invest $50 million in a Bitcoin start-up. Numerous high-profile firms have begun accepting Bitcoin as a payment method including: Dell Inc. (NASDAQ:DELL), Dish Network Corp. (NASDAQ:DISH), Expedia Inc. (NASDAQ:EXPE), and Overstock.com (NASDAQ:OSTK).
MarilynJean Media Interactive is among the first publicly traded companies focussed on bitcoin and the crypto-currency space. The company's trading symbol is MJMI.QB.
SOURCE: MarilynJean Media Interactive