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Crypto-Currency & the Blockchain

March 11, 2015

Technology for Financial Inclusion

What does it mean for Financial Inclusion?

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Agenda

  • The Case
    • Meet Beza and Abel
  • The Reality
    • Some statistics
    • MTOs and their business
  • The Future
    • Cryptocurrency
    • Payment solution
  • Questions and Answers

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The Case

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Meet Beza and Abel

  • Beza is a young lady
    • lives Dembidolo, Ethiopia
    • cares about her children
    • running a small hand-craft business
  • Abel, Beza’s brother
    • Migrant worker from Ethiopia
    • lives in Spokane, WA, United States
  • Abel send his sister $200.00 every month to support her
    • He’s paying ~$25.00 fees per remittance

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The Reality

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Some statistics

  • What we are talking about
    • $32 billion of money transfer to Africa in 2013
    • increase to over $41 billion in 2016
  • Charges
    • according to ODI approx. 12%
    • G8 proposed 5%
    • World average charge is 7.8%
  • Possible impact through reduced charges
    • $1.4 billion up to $2.2 billion more money
    • fund primary education for 14 million children

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MTOs and their business

  • Market is dominated by traditional MTOs
    • Western Union and Moneygram control ⅔ of the market
  • No real competition
    • Strong connection / bondage with local FIs
  • No transparency
    • They can literally do what they want
  • Up to $800 million revenue only for one MTO
    • Guess why they are not looking for a change

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The Future

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Cryptocurrency

  • Creating a safe Digital Currency
    • Using cryptography to secure and “create”
  • Mediator between FIAT currencies
    • Can be used for direct payment
  • More trading than exchange
    • Best bid wins instead of fixed fees

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Payment solution

  • Distributed Ledger
    • the network knows it all
    • Safe and reliable
  • P2P
    • Connection established between all parties
    • High transparency
  • Market Maker's bid on money transfer
  • The cheapest solution is selected
    • USD -> CC -> AUD -> CC -> ETB

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Question and Answers

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Additional Resources

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Thank You

  • Mifos Initiative
    • http://mifos.org
    • info@mifos.org
  • Demo Server
    • http://demo.openmf.org/
  • GitHub
  • Twitter
    • @mifos

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About Us

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Who are we

  • Financial Inclusion Thought Leader
  • Emerged out of the Grameen Foundation in 2011
    • Transition from Product to Platform
  • 501(c)(3) Non-Profit
  • Global Community
  • Partner-Led Ecosystem
  • info@mifos.org
  • http://mifos.org/

End Poverty. One Line of Code at a Time.

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Who am I

  • System Architect & Developer for Mifos since Spring 2015
    • Volunteer for Mifos since Spring 2014
  • More than 15 years experience
    • Enterprise and Business Software
    • Finance, Manufacturing and Search Technologies
  • Lives in Nickenich, Germany
  • mgeiss@mifos.org
  • Skype: mgeiss.mifos.org

YAGNI likes a DRY KISS

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