Chynge To Launch Blockchain-Based Remittance Service
Chynge, a Singapore based start-up company is aiming to provide remittance services in the remote part of the world. They have a team of 15 members and one remittance agent each in Singapore, Vietnam, Malaysia, Indonesia, and Australia are trying to provide an easy, fee-less and secure cross-border transaction. Their core strength lies on distributed ledger system backed by Stellar-blockchain protocol and fuelled by its native token XCLP.
This announcement was made before its token sale on 28th June 2018. After it’s launch in Q2 of this year, it has handled the transaction of S$2 million in a gross transaction.
HOW DOES IT WORK
Remittance process usually takes up to ten minutes, Joe Tusin, Chynge CEO aims to bring it down to below one minute. To meet this, they will convert the legal tender submitted by a sender to XCLP cryptocurrency which will be recorded in digital ledger. Remittance platform will, hence, send this XCLP tokens to recipients country, again getting it converted to local currency of the recipient. Carrying the whole transaction with the support of blockchain functioning at the back end of the system, without the users getting the knowledge about cryptocurrency involved in the transaction. Needless to say, it does not impact the foreign currency ratio since its difference is mitigated by cryptocurrency exchanges.
First, customers need to enter their required information to Chynge app, then visit remittance office for a face-to-face verification.
Once the account is verified, user can submit his remittance through his app avoiding any subsequent visit to office. This avoids wasting time in long queues in banks and money transfer operators, which are only functioning on business hours. The following submission through app facilitates an instant transaction, limiting the hassle in banks.
The automated system verifies compliance checks in the customer’s data as required by the sender and recipient countries regulatory authority. Till now, they have been able to perform better in spite of multi barriers in the Asia Pacific region with a number of government-controlled currencies like Yuan in China and Ringgit of Malaysia.
Though Chynge can not circumvent such restrictions, but it definitely reduces the time consumption around checks of such remittance transactions.
High liquidity – Chynge is opening bank account in all the countries having its own currency, this ensures adequate liquidity to facilitate a transaction. This retains money of the country and saves us from additional transaction fee and time. Further, this process guards from the currency depreciation involved in the mechanism.
Smart Compliance Technology – Chynge system works on the concept of ‘Smart Compliance’ leveraging Artificial Intelligence and Machine learning to create a profile for each of its users to monitor any suspicious transaction in their account. This validates protection against terrorist financing, money laundering and other crime supporting funding.
Though Chynge has not decided any fee structure for their transaction, they are competant to get a continous monthly revenue of S$50,000. A primary factor for the success of such start-up lies in their ability to be clean with different countries regulations. And Chynge seem to facilitate high risk transactions in frictionless manner without breaking any laws.
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