New Remittances System to Tackle Crypto Volatility When International Payments Are Made

A Japanese fintech company has unveiled a system that is designed to address the price volatility seen when cryptocurrencies are used for remittances.

Atom Solutions says that, at present, the options for foreign workers who need to make overseas remittances are imperfect.

Because of the wild fluctuations seen in the marketplace - from Bitcoin and Ethereum to lesser-known altcoins - the value of a remittance can fall dramatically in a short space of time, meaning that the fiat converted to crypto for a remittance can be worth a lot less when it's converted back to fiat at the other end.

A suite of financial servicesAtom Solutions says that it wants to offer a suite of financial services extending beyond remittances, all with a view of making crypto more practical for everyday use.

In addition to playing an instrumental role in the remittances process, the platform also plans to enable its community to lend XEC to other users on a peer-to-peer basis.

Overall, Atom Solutions says that its concept for remittances is something that has never been implemented in the world before.

Remittances on the riseData from the World Bank surrounding remittances to low- and middle-income nations helps to paint a picture of why reform is needed.

The independent group recently said that remittances hit a record high in 2017 - increasing by 8.5 percent to reach $466 billion over a 12-month period.

Remittances have been growing further in 2018, the World Bank said, and given how these sums of money often serve as crucial lifelines for the recipients, Atom Solutions is hoping their concept will help them access more of this money without losing cash to exorbitant fees.

Atom Solutions is based in Tokyo, and the Equivalent Value Overseas Remittance System is scheduled to be launched at the beginning of March 2019.