Bridge21 : to send money USA to Mexico - Buy Bitcoins News profitable bitcoin Mining

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  • Bridge21 : to send money USA to Mexico

    A company based in the United States aims to make access to cross-border transactions much simpler. Operating only between Mexico and USA for the moment, the initiative allows sending remittances without the customers getting involved with Bitcoin but having all the advantages that the technology offers.

    For many, sending money to a family member or business in a different geographical location is common practice.These peer-to-peer transfers - known as cross - border remittances or payments - are often sent by bank transfer, by mail or online. Unfortunately, these monetary transfers can take days to complete, as well as they can result in fees and hidden costs that can accumulate quickly.
    At present, there are only two main methods of money mobilization: the traditional route of transferring from a bank account to a bank account, or through remittance networks such as Western Union . Bothprocesses are expensive, as confirmed by aWorld Bank report , which found that the average cost of sending remittances, outside the US alone, was around 6.01%.
    Major remittance-receiving countries, according to another World Bank study , include Mexico, China, India and the Philippines. The first of these countries continues to have the most media attention with remittances to Mexico for a total of 26.97 billion dollars in 2016, almost 9% since 2015. This was the highest according to figures from the central bank Mexican, dating back to 1995.
    A new solution
    Due to the high costs and long waiting times associated with money transfers, the global remittance space has long been treated as a target for the Blockchainoutage . Now, an American initiative, called Bridge21 , believes it can create a new strategic advantage in international transfers on banks and money transmitters, starting with Mexico.
    Based in Denver, Bridge21 is a mobile web-centric service that allows you to store money in any currency. It was founded with the aim of feeding a new model of "money without borders". Using Bitcoin as a transaction medium, Bridge21 facilitates transfers to FDIC-insured bank accountsthat are licensed and enforced in other countries.
    The company originally started a Bitcoinbrokerage service before discovering a larger opportunity around the use of Bitcoinfor remittances . Today, Bridge21 is delivering what they believe will be a high demand service, serving the intersection between the purchase and sale of Bitcoin , without the sender or receiver ever getting involved with Bitcoin . And all this without associated volatility and custody concerns.
    For a client, the prospect of having a faster, more secure mechanism for executing bank-to-bank transfers, with significantly lower exchange rates, is attractive. There is no denying that remittances are expensive, since the poorest people have fewer options and often charge them the highest fees.While other companies will claim their participation in this space, Bridge21 , which launched in beta in January, is poised to become the first to provide an end-to-end "real-time" tool through the use of Bitcoin .
    From a business trade perspective, while global trade has grown significantly since the 1970s, the cross-border payment model has changed very little. It is here that companies expect to capitalize, through lower payment processing costs, lower settlement times and lower exposure to risk, which leads to lower pre-financing expenses and currency risks.
    The use of Bitcoin as a payment train
    It is well established that Bitcoin can be shipped across the world without the need for a third party intermediary, such as Bridge21 . The problem, however, lies in how accessibility is to those who are at the receiving end once the remittance arrives.
    Here's how it works: Bridge21 provides a means for any user who owns a bank account in the United States to send money to a Mexican bank account. The money is removed from the sender's account and used to purchase bitcoins , which Bridge21 refers to as "digital cash". Bridge21 then sends the bitcoins to Mexico where they are sold for pesos and then deposited into the bank account of the recipient.
    The process is fast and occurs after a simple confirmation on the Bitcoin network .And because the use of technology is not readily apparent to the customer, they see it as they would with any other traditional bank-to-bank transaction.
    Bridge21 is currently operating from the United States to Mexico. This week, the team announced a new feature that implies a significant price reduction for US transfers to Mexico, with the ability to send money to Mexico by 2% or even 5% less than the standard prices of the two countries. This bridge rate is linked to the actual cost of buying and selling bitcoins in two countries, including network rates.
    These events are in the midst of Mexico's important media attention linked to US President Donald Trump's anti-Mexican rhetoric and threats to build a border wall to prevent illegal immigrants from entering.The president has even said he wants to confiscate a percentage of Mexican remittances to pay for his border wall, a measure that may be gaining ground. The Mexican government said it will continue to support the free flow of remittances to the country.
    Bridge21 argues that most mercantile movements between the United States and Mexico are not the 25 billion dollars sent by American workers to their families in Mexico; Rather they are the approximately 500 billion dollars sent bilaterally between the companies and very rich people who conduct business largely through bank transfers.
    According to Bridge21 , the taxation of individual remittances will concentrate the cost on only 5% of the cross-border money flow, which would include the poorest people who can least afford it. This could have two effects: first, it could direct money transfers to informal money transfer networks (ie the black market); Secondly, it could reduce the already low living standards of the poor. Neither of these reflects a good result.
    Founder and CEO, Will Madden, spent a good part of his career building Western Union,  current payments and remittance products. He learned of Bitcoin in late 2010 and began to foresee the potential of this technology to transform cross-border payments.
    Madden says Bridge21 is focused on continuing to improve the ease with which individuals and businesses in the United States can send funds to Mexico. However, he notes that the company has ambitious goals for 2017, including expanding several additional brokers to fulfill its mission of providing access to money without borders.Madden said:
    We will not stop with Mexico ,  we see a lot of potential to expand to other destinations, such as the European Union, United Kingdom and India, which have heavy traffic from companies and people who send funds from the United States "

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