Bitcoin transactions cut the cost of international money transfers
Bitcoin operation helps domestic workers in Hong Kong to transfer money home cheaply
Maria Teresa Lasam doesn't know how bitcoin works but is thrilled that she's able to remit money to her family more conveniently and at a fraction of the usual cost through this cryptocurrency.
The domestic helper sent her money through local start-up Bitspark, which has a temporary Sunday office at World Wide House in Central.
On his laptop, 26-year-old Bitspark CEO George Harrap fills in her details, such as the funds' recipient, the amount, her contact details, and where the remittance will be picked up. It takes about 10 minutes.
"It's very fast and convenient because the money gets there in less than 24 hours. Last time I did it, the money was there in three hours," says Lasam, who has worked in Hong Kong for nine years. The HK$300 is for her daughter, who will receive a text message with a numbered code to verify her identity when she picks up the cash. Lasam will get periodic updates by text or email to let her know the status of her money transfer.
Typical remittance services charge a minimum fee of between HK$20 and HK$25. Bitspark undercuts other services with a flat HK$15 for any remittance less than HK$1,200, and 1 per cent for amounts over HK$1,200.
According to Harrap, Bitspark is the first bitcoin remittance in Hong Kong, and the first end-to-end bitcoin remittance in the world. He has used bitcoin since its inception in 2011 and last May set up Bitspark, which aims to be a "disruptor" - or a game changer - in the foreign exchange market.