We're used to Venmo in the US but many places in the world don't have an equivalent. Valora is a new Venmo-like mobile app that's built on the Celo blockchain, a new network where mobile devices can efficiency sync with the chain, with a native stable coin, and a decentralized phone number verification protocol.
Check out https://valoraapp.com and https://celo.org
Similarly, an app called BeemIt, which is supported by the major banks here gives you a very similar experience, albeit with a prettier UI/UX. As it stands, there’s now no advantage that cryptocurrency offers in this space anymore IMO.
Maybe im just a stick in the mud, but i always thought it worked pretty great.
If I needed to move all of my money for some reason, I’d much, much rather just go through normal channels and not have to worry about the logistical and legal issues crypto currencies incur.
When you want to use a cryptocurrency to move money between monetary unions, you only have to touch the cryptocurrency for 20 minutes or less. Your chance of any meaningful volatility is very low, even in these systems, the 24/7 trading smoothes out the volatile periods. No, you don't "lose out on exchange rates" especially if you are talking any real money or know how to trade better.
An expected spread for a few million dollars with or Bitcoin or Ether should be 30 basis points, at an OTC desk.
No tax or legal issues encountered.
For payments I primarily use stablecoins like DAI, which are not volatile at all.
Whether you use stablecoins or the native cryptocurrency, it is all way less limiting and cheaper than any exchanges, way less limiting than a random fintech app with random monetary restrictions.
Your currency -> crypto, crypto -> destination currency are the two places you’ll suffer exchange rate losses.
> ... or know how to trade better.
Make a mistake, or you aren’t a trading wizard and you’re irrevocably out of luck though!
> it is all way less limiting and cheaper than any exchanges, way less limiting than a random fintech app with random monetary restrictions.
Until I later discover I’ve got pay tax on the gains or something later on and then have to sit down and work that out. Or that I had to declare it or something because I’m moving an amount above some threshold. Sure, it might take only 20 mins of everything goes nicely and you know exactly what you’re doing and someone doesn’t sneeze and tank the value of the currency out from underneath you, but I’m much happier going through proper channels where I at least know it’s going to work because it’s being done by people whose job it is to make it work.
Why would I use a stable coin, instead of just three fiat currency it’s backed by though?
For you to still write this means you don't know what a basis point is.
And to elaborate on all the random things you think you'll encounter means you didn't really understand a word I said.
My reality is valid, yours can be like mine if you started searching for solutions instead of rehashing outdated problems.
And if you want, stablecoins improve all of that. DAI is not backed by fiat currency specifically, although it can use other fiat-backed stablecoins as collateral.
Why this method over fiat? One reason off the top of my head is that I typically convert what would be an international wire into a domestic wire. So I inherit a lower compliance burden and also the same day settlement capability. I have the capability of avoiding exchange rate and interchange fees when that matters to me. Even apps like Revolut and Transferwise are more expensive and would still have transaction limits. They are also quite restrictive on businesses they will bank, compared to an actual bank, and this list often complies with a foreign standard (usually some carve-out of an EU/EFTA banking license)