We are delighted to share that ZeroBank is sponsoring “Blockchain Forum - Vision and Development” taking placed in JW Marriott Hotel, Hanoi, Vietnam
Korea Blockchain Summit 2018. Of course, Zerobank will not miss the opportunity to meet and share our products and services to the South Korean community. Come to our booth to sharpen your understanding about “Your Local Currency.”
London Summit last year was spectacularly successful and attracted thousands of investors and exhibitors. This year, Zerobank is honored to be one of Silver sponsors for such a prestigious event. Please come and join our booth to understand more our project and have a chance to win many special lucky draws on 26th - 27th June, 2018 at Olympia, London.
The current international money transfer and exchange industry typically depends on banking systems and MTOs.
However, these outdated-model businesses encounter many problems themselves, making them insufficient, sluggish, and costly.
International banks and global MTOs bear many kinds of cost due to their bulky, outdated, brick-and-mortar structures. For example, according to a recent research at Citi, the costs for maintaining legacy information systems, investing in new ones and paying IT staff, all adds up to account for 25% of a typical bank’s annual budget. Banks spend around $200 billion every year on IT, 80 percent of which – Citi estimates – is spent on maintenance and small evolution of legacy system. These costs translate into their excessive service fees.
The very way these institutions approach remittance service adds to the final costs, since they only deal with the most common currencies, ignoring vast swaths of those in need. Customers transferring to or from less common currencies can face double costs. Taking a specific example when a customer transfer money from the U.K. to China via Western Union (WU) system:
- WU takes GBP in the U.K. and transfer to China in USD => Customer bears GBP/USD spread from WU.
- WU’s partner in China has to use unofficial rate to convert the USD into CNY to pay out in CNY. Customer bears local USD/CNY spread.
Consequently, transferring money from the U.K. to China via WU systems, a customer bears two conversion rates with spreads (double expenses), in addition to high commission fees for the transaction.- Hide
Many banks with large network coverage are not involved in non-commercial transfers. However, although many banks and MTOs have developed strong networks, the money transfer industry in general falls well short of the entire market’s need, especially in remote areas where communities are small, and commercial activities are low.
Since the industry is heavily regulated by governments around the world, any banks involved in remittance transactions and all MTOs have to invest heavily to assure legal compliance, which in turn adds to the cost of their services. National banks in many countries are no longer licensing smaller MTOs, mostly due to problems concerning legal compliance, especially in the United States and the United Kingdom, where Anti Money Laundering (AML) law is strictly enforced. Legal costs are forcing more and more players out of this market space, leaving customers with less and less options.
The money transfer and exchange industry is not immune to the global movement towards decentralization and peer-to-peer sharing economies. In fact, these areas are poised to be some on the leading edge of those that thrive in this new paradigm. With the help of blockchain and smart contract technologies, along with the sharing economy model, ZeroBank will disrupt the outdated transfer and exchange models centralized around “too-big-to-fail” banking and MTO systems by bringing out a “money barter” model fit right in the current position of world money market.
Co-founder & CEO
Co-founder & CTO
Blockchain Specialist & Developer