RemBit: a blockchain based solution for remittances to Ethiopia

Abstract

Since its introduction in the Satoshi Nakamoto's Bitcoin white paper published in 2008, blockchain technology has been seen as a great opportunity to enable new business scenarios both for developed and developing countries. Considering that digital alternative payment methods represent a key factor to the smart cities development, in this study we propose an innovative payment solution aimed at improving the remittance flows by exploiting the potential of blockchain technology. Traditional banking remittance systems are characterized by high transaction fees and long transfer times, therefore they encourage the adoption of informal channels for money transfer with consequent losses in the economic system. By focusing our interest in a specific country of Sub-Saharan Africa, Ethiopia, we launch an innovative blockchain based system able to make the remittance process safer, faster and to allow secure and reliable transactions between the counterparts in data sharing. We describe its architecture, which enables a secure management of big data and the different stages of solution design. Furthermore, the system guarantees the compliance with the Ethiopian government's recommendations on the matter, in particular it allows to encourage formal data collection on remittances and to support the introduction of new technology in the payments system. In addition, its use by individuals could improve awareness and financial education in Ethiopia and it can help prevent money laundering and financing of terrorism.