Transfers of digital funds and with blockchain technology, the modality that is developing in LatAm

Santo Domingo — Remittances continue to be an important factor for economies in the region. In 2021 alone, Latin America and the Caribbean received US$127.6 billion in remittances, an annual growth of 26.0%, the highest recorded in the past 20 years.

According to the Inter-American Development Bank (IDB), the volume of remittances to the region in 2021 was almost triple the 2005 levelwith the largest increase in history.

“The remittances received by the families of migrants from Latin America and the Caribbean are an essential contribution to their subsistence and, in many cases, a determining factor in preventing them from falling below the poverty line”, declares the IDB.

The money transfer service was initially dominated by large companies that monopolized the market with office collections, home services or transfers, but new and not-so-new technologies have created a more competitive scenario where emerging companies can account for a large share of the market, due to ease of shipping, cost, and reach.

One of them is the digital remittance company DUC App, which is trying to expand in countries in the region with its digital and blockchain remittance services.

The remittance company, which is based in Toronto, Canada and initially sent remittances to Cuba for around three decades, has been pushed to make strides in the industry.

Your CEO, Henry Martinez, in an interview with Bloomberg Line, indicated that due to advances in the financial industry and competition in fintech, neo-banks and platforms needed to be modernized so as not to disappear.

“The main objective is to provide users with payments in a comfortable, remote, secure and diverse way. We have a long way to go, but we are satisfied,” said the CEO of DUC App.

DUC APP is preparing to give greater reach globally and can be found on the various download platforms. It currently operates in Latin American countries such as: Mexico, Panama and Colombia, but is looking to expand into other markets in the region.

The application allows not only to send money, but also to send phone recharges, to have a social profile and to have a personal or professional account.

According to its CEOs, the average payout is $150 and phone top-ups are $20, but they have a maximum of $500 depending on whether the account in the app is personal or business.

Crypto Market Volatility

Decentralized cryptocurrencies have high volatility. The ups and downs of the crypto world have caused major capital losses.

And although DUC has four blockchain or blockchain currencies, Martinez explained that these are currently centralized internal currencieswhere the app manages the keys and has custody of them, but in the future the vision is that there will be more coins and in a decentralized way.

“We want customer integrity and one of the main features was having in-house, blockchain-based stablecoins and so we have the digital dollar, the Canadian dollar and the euro. These currencies, while the client transacts or has money in the wallet for whatever reason, remain stable, the volatility they have is the same as the fiat currencies that back them,” he said. declared.

In addition, from the application you can make payments with credit cards of all known cards in the largest open networks, direct charges can be made from banks, payment systems can be used by email and other cryptocurrencies can be used. .

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The CEO of DUC App pointed out that the main remittance markets they currently have are countries that have large migrant settlements in Canada, such as Bangladesh, India, Pakistan, as well as others such as: Mexico, Spain and the Philippines and which have alliances with partners in the countries.

Commission

The commission that is paid depends on the market, according to their CEO they are proficient in rates and exchange rates, although he stressed that they do not seek to be the cheapest on the market but rather those who offer the most diversified services.

“In market transactions it’s simple, when you compare rates and fees, you have to calculate the total amount you paid and the total amount you received. Big companies can say they charge a dollar or five dollars, but in reality it does not matter, because the cost is in the exchange rate of the exchange currency,” he added.

Who are behind CIC

The DUC team is made up of Martinez, a Canadian citizen but born in Cuba, and 16 others ranging from customer service to data validation and security screening personnel.

They are not alone in the market

In the market for digital currency remittances and blockchain technology, several start-ups and other large companies are seeking adoption. Some of them are: Abra, Align, Coins.ph and Volabit.

Additionally, MoneyGram seeks to enter stable remittances. One of the largest transfer services in the United States is preparing for the adoption of blockchains that allow users to send starcoins and convert them into hard currency.

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