Bitcoinist spoke with Kumar Gaurav, CEO of Cashaa, a blockchain-powered P2P marketplace that makes it possible to send and receive cash anywhere in the world with zero fees.
Unfortunately, when it comes to remittances, the poorer the country, the higher the fees, says the CEO of Cashaa, a blockchain startup based in Canary Wharf, London. Too often, the poorest of citizens can lose up to 20% when receiving money from abroad with traditional services like Western Union.
Bitcoinist finds out how Cashaa manages to solve this major problem using Bitcoin’s technological ‘backbone’, the blockchain.
Interview with Cashaa CEO, Kumar Gaurav
Bitcoinist: What major problem does Cashaa solve? What is the potential of the market you are targeting?
Kumar Gaurav (KG): We are targeting individuals who wish to send and receive cash in different parts of the world, but who are currently losing up to 20 % in fees. There is a cash remittance industry of ca. $240bn, which is mostly controlled by expensive money transmitter companies, which charge on average 15%. Sadly, the poorer the country, the higher the fees. This is the major problem that Cashaa solves.
Bitcoinist: What blockchain is used for this service? Is it public or private?
KG: In April 2016, we for testing purposes launched BTC2BID, a Bitcoin trading platform. Cashaa, which is going to be launched in early 2017, will use Inter Ledger, which enables us to match traders of same or 2 different cryptocurrencies with the cash sender and receiver. This means, the cash sender can give their cash to a trader who sold their Bitcoin, and on the other side, the cash receiver can receive cash from a trader who bought e.g. Bitcoin, Ether, Litecoin etc. Therefore, we are cryptocurrency-agnostic and welcome traders of any cryptocurrency to join our platform for trading.
Bitcoinist: Why can’t a regular encrypted database be used instead?
KG: We are necessarily using blockchains as our use case is a cryptocurrency use case. Thanks to cryptocurrencies, for the first time, money can be moved globally without any fees, which was not possible in this way before.
Bitcoinist: How does your service offer a fee-free cash transfer? How does Cashaa make money?
KG: Cashaa is bringing the cryptocurrency traders more opportunities by bringing liquidity from the cash transfer industry. Through us, they can trade in an international market and make more money. Now, for example, people would like to sell their Bitcoin in India, but so far, they would have had the problem of how to pay or get paid from someone abroad. We are solving that problem indirectly as now, they are free to trade at their own price without thinking about this issue, as people get paid locally in cash.
And we charge cryptocurrency traders from the profit they made during their trade compared to their local Bitcoin price.
Bitcoinist: What is Cashaa’s trader network? Can anyone become a part of it?
KG: We launched an anonymous trading platform…