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The team behind Sibcoin project is finally launching a decentralized platform for cross-border money transfers following a few months of development.
Developed on a fork of Dash cryptocurrency, SibCoin, known as the “Siberian Chervonets”, is aimed at serving the blockchain needs of the Russian community. The team is actively working on expanding awareness of the cryptocurrency and the blockchain technology in the country. The developers of the project enhanced the Dash protocol by using additional encryption algorithms to make the cryptocurrency more adaptable for users in Russia.
Initially targeted at users in Russia, the platform was launched in China earlier this year aiming to expand its popularity in the local market. The project’s official website is now open to professional traders and digital currency users in the country.
Since its creation in May 2015, the adoption of SibCoin has been rapidly growing and is currently estimated at $0.546 per coin, according to CoinMarketCap.
The SibCoin team has just announced the launch of a decentralized service for international money remittances called Perevod.io. The new platform allows users without any specific knowledge of digital currencies to easily exchange fiat money via Sibcoin-supporting third party exchange services. Moreover, users are not required to have awareness of the virtual currency as the funds are paid out in local fiat currency.
“The solution is about enabling two rookies who have only a slightest idea of cryptocurrencies but trust each other to execute international transactions without any additional training or wallets,” the team said.
To transfer the funds via the platform, the sender has to convert fiat currency to SibCoin via an exchange service, enter the recipient’s phone number and send a secret password to the other party. The recipient, meantime, receives the password from the sender and gets a text message with a link that takes the recipient to the Sibcoin-supporting exchange service, which pays out the transferred money.
Unlike traditional cross-border payment solutions, Perevod.io completes transactions in just a few seconds. Besides, the system does not store any personal data of the parties involved in the transaction, including phone numbers, IP addresses, and ID information. The platform can be used as an alternative money transfer service in underbanked countries to bypass sanctions imposed on financial services and avoid high transaction fees charged by conventional money remittance systems.
Overall, the use of digital currency for cross-border transactions is steadily growing, with money transfer firms playing major role in improving financial inclusion. Still, the outdated regulation is one of the main issues impeding the further development of the remittance industry. While the future of the sector depends on innovative payment solutions, regulators are unable to quickly embrace these technological advancements.