Transforming Cross-Border Payments and Remittances Using Cryptocurrencies
In the fast-paced world of global finance, traditional forex banking methods have long been plagued by inefficiencies that frustrate both senders and recipients of cross-border payments. The involvement of numerous intermediaries not only slows down the process but also drives up costs, making it less appealing for individuals and businesses alike. Recognizing these pain points, Saber Money came up with a solution that leverages the power of crypto rails to streamline cross-border payments and remittances.
Challenges with Traditional Forex Banking
The Saber product suite addresses the two major challenges of traditional methods: speed and cost. Typically, sending money across borders through conventional banks and agencies can take several days as the transaction passes through multiple middlemen, each adding its own delay and layer of complexity. This cumbersome process often leaves users in uncertainty, waiting for their funds to arrive. Additionally, each intermediary takes a cut, leading to higher conversion rates and reducing the amount received by the beneficiary.
Saber’s Multilayer Solution
Layer 1: Onramping Fiat Currency to Stablecoins
Our solution operates on two levels. The first layer involves onramping the sender’s local fiat currency, such as USD or EUR, into a stablecoin like USDT. This process is not only swift but also secure, as it uses blockchain at its core employed with advanced KYC and AML protocols to ensure compliance with international regulations. The choice of stablecoins mitigates the risk of volatility, providing a reliable medium for transferring value.
Layer 2: Offramping Stablecoins to Local Fiat Currency
Once the fiat currency is onramped to a stablecoin, the second layer comes into play. The stablecoin is offramped quickly and efficiently into the local fiat currency of the recipient’s country, such as INR or any other local currency. This conversion is executed at competitive exchange rates, significantly lower than those offered by traditional banks, thanks to the elimination of multiple intermediaries.
Impact and Benefits
The impact of our solution is profound. By reducing the number of middlemen involved, we can offer much better pricing, making cross-border transactions more affordable for users. The quick transfer of funds, often completed within minutes to a few hours, contrasts sharply with the days-long waiting period associated with traditional methods. Moreover, our platform provides an efficient user experience, ensuring that transactions are not only faster and cheaper but also straightforward and secure.
In summary, Saber’s onramp and offramp infrastructure revolutionizes the way cross-border payments and remittances are conducted. By addressing the core issues of speed and cost, we deliver a solution that enhances user satisfaction and provides a compelling alternative to traditional forex banking methods.
