Japanese Company Unveils Remittances System To Address Crypto Price Volatility During Payments
Atom Solutions, a Japanese fintech company, unveiled a new system that aims at reducing crypto price volatility at the time of processing transactions. This will help individuals that work abroad to have an improved remittance service.
Cryptocurrencies have been used in order to avoid high fees that traditional remittance services have, and also to reduce transaction times. Mainstream remittance services are not perfect and they usually are very expensive and slow. With virtual currencies, individuals were able to avoid these issues, but volatility for these payments remained an issue.
Using Bitcoin (BTC) or other virtual currencies to process payments, the payment could decrease in value in just a few minutes or hours. The receiver would have less money than expected if the price falls during the transaction.
To solve this problem, Atom Solutions developed the Equivalent Value Overseas Remittance System (EVOR). This product might be able to reduce the fluctuations experienced when processing international payments with virtual currencies.
If there is a person in a country that wants to send funds to another, this person can purchase virtual currencies in his local currency and send them to the wallet of the receiver. However, the payment will arrive in local fiat currency, in this way, it is possible to reduce the costs and risks associated with foreign exchange.
The company wants to explore other solutions and not focus only on remittance services. The intention is to make cryptocurrencies easier to use every single day. Atom Solutions has also created a new digital token called the Eternal Coin (XEC). This coin will play an important role in the remittances process and it will enable the community to lend XRC to other users. Users lending these coins will have the potential to earn interest on these loans.
Remittances are growing all over the world. According to a recent study published by Clovr, the number of individuals using crypto for remittances increased during the last few years. 15.8 percent of the respondents said that they use virtual currencies for international transfers.
The report reads as follows:
“Given its deregulated status, cryptocurrency offers plenty of advantages where domestic and international money transfers are concerned. By avoiding the high transaction fees and conversion rates typically associated with transferring funds abroad, you can take a few extra steps, potentially getting significant savings.”
This shows that the product developed by Atom Solutions could play an important role to reduce fees and costs associated with international transfers even further.