Lack of Awareness Hinders Blockchain Adoption in Remittances, Says Bloom Solutions Founder
Luis Buenaventura, the founder of Bloom Solutions, shreds some light on cryptocurrencies and using the power of the blockchain for remittances and investments in the Philippines.
Much of the details written below are from Mr. Buenaventura’s interview with the ABS-CBN News Channel (ANC). You can check out the interview here.
Filipino remittances and cryptocurrency
From January to November 2017, Filipino OFWs sent home around $20B worth of remittances. According to Mr. Buenaventura, around 2% – 5% of which are sent via cryptocurrency. The reason for this very low transaction percentage is awareness.
Why choose cryptocurrency instead of the old way of sending money?
Mr. Buenaventura stated that using the blockchain technology can give Filipinos another option to solve the problems of transaction costs and speed. Using this new technology, 50% off transaction fees can be cut off while also being able to transfer the money in mere seconds.
Current obstacle in using cryptocurrency for remittances
Education. Current remittance companies are not aware that they can use blockchain technology in making their businesses better. Mr. Buenaventura’s company helps these businesses realize and apply the potential power of the blockchain to reduce cost and to make it more efficient.
Using technology to help remittance firms
Mr. Buenaventura shared that his company is not there to compete with remittance firms but instead help them in using the blockchain technology. He also said that they are there not to disrupt the current practice but to improve.
Cryptocurrency volatility in remittances
Cryptocurrencies are very volatile; one minute it’s at an all-time high, and the next minute it goes down. Cryptocurrency remittance companies like Bloom Solutions need to reduce volatility risk. Mr. Buenaventura stated that finishing a transaction may take a few seconds or minutes to clear and it won’t have any significant change in the amount.
Cryptocurrency remittances 3 years from now
Customer awareness. Mr. Buenaventura didn’t give out any specific data but he is sure that cryptocurrency will reach more awareness not necessarily in remittances but more as an alternative investment.
Coincheck, one of Japan’s biggest cryptocurrency exchange site got hacked, losing around $530 million worth of NEM to hackers. Mr. Buenaventura said it is a part of an early stage growing pains of the industry. Another reason he shared is the cryptocurrency world is growing exponentially and the technologies being used are not ready for these kinds of numbers. These growing pains are needed to learn how this new technology can be properly secured.
Bloom Solutions in the Philippines and Vietnam
With India being the top receiver of remittances in the world, is Bloom Solutions ready? Currently, the company is in the Philippines and Vietnam. Its mission is to link South East Asia first as the company already has partners set up. India is on the radar and will launch as soon as the company has resources to do it.
2018 Bitcoin prediction
Mr. Buenaventura’s prediction this year for Bitcoin is $50,000 = 1 BTC. This is because the technology is continually growing, evolving, and maturing. He also said that it can even reach a six-digit price but not quoting when it can happen.