Kumaraguru Ramanujam: Using Bitcoin SV to send money across borders

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When Bitcoin was first invented, many hailed it as the solution to inefficient cross-border remittances. But because of the high fees associated with transactions on the BTC Core network, it has never been able to live up to its full potential. 

That’s why Kumaraguru Ramanujam has chosen to build on the Bitcoin SV blockchain instead. His application, MoneySwipe, aims to bring down fees for sending money abroad from the current global average of 7% to just 1.5%.

He explains to Charles Miller on this week’s episode of CoinGeek Conversations that the company is aiming to tackle the U.K.–India remittance corridor first. This makes a lot of sense as India tops the list of countries receiving personal remittances. According to a 2022 World Bank Report, a whopping $83 billion is sent back to the country each year in payments.   

Ramanujam’s plan is to work with regulators in India to create a cross-border payment solution without high costs. He explains that the Reserve Bank of India (RBI) has set up a regulatory sandbox with the intention of finding companies using blockchain to bring efficiency to the billion-dollar remittance industry. 

The sandbox originally opened in 2018, with a company using Hyperledger Fabric selected, but it has now reopened, and Ramanujam is keen to show the RBI the power of Bitcoin SV. 

“We first show the regulator that BSV’s better than Hyperledger then we show them, okay, yeah, transfer of value can also happen,” he said. 

The introduction of an efficient remittance system like this would be a gamechanger for the Indian economy. If costs could be brought down to 1.5%, this would mean over $4 billion could be saved and go straight to the recipient, instead of being lost in fees. This would also benefit the government as it would receive more foreign exchange reserves. 

“It’s a win-win and it’s a stated aim of the United Nations’ sustainability goals to bring remittances down from 7% to 3%,” Ramanujam points out. 

While the application is powered by the BSV blockchain, stablecoins have been enabled so they can be used as a bridge asset, to ensure liquidity and comply with regulation.  

The final application, which will be launched by the end of the year, will be informed by how MoneySwipe engages with regulators. The hope is that by working closely with them, the final product will be innovative, relevant, and risk-free. 

The focus for now is India and the corridor with the U.K., but once this has been developed, he intends to turn his attention to other regulators to create remittance solutions that work with governments across the globe. 

Ramanujam believes that being able to show experience working successfully with one regulator will make it easier with others.  

“We want to work with the regulator who’s open with their policies right now, rather than us telling them this is how things have to be done—so we are looking at countries that are open right now with sandboxes,” he said.

Hear the whole of Kumaraguru Ramanujam’s interview in this week’s CoinGeek Conversations podcast or catch up with other recent episodes:

You can also watch the podcast video on YouTube.

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