TurinWallet is a groundbreaking mobile application designed to make bitcoin transactions as simple and accessible as possible. It enables users to buy, receive, and send instant bitcoin payments through the Lightning Network, a layer 2 solution on top of Bitcoin's blockchain that allows for faster transaction times and lower fees.
The Lightning Network, a key component of TurinWallet's functionality, is a "layer 2" payment protocol that operates on top of a blockchain (in this case, Bitcoin). It offers a solution to the scalability issues that traditional blockchain-based cryptocurrencies face, enabling instant transactions and lower transaction costs.
International remittances, or the act of sending money abroad, play a significant role in the global economy, especially for developing countries. These funds often provide a lifeline for families, covering basic needs or contributing to local economies. Thus, the impact of TurinWallet and the Lightning Network in this space can be transformative.
Current Challenges in International Remittances
Remittance Service Providers (RSPs), businesses that facilitate international transfers of money, face significant hurdles. A common issue is the danger of being de-risked, where banks terminate or restrict their relationships with RSPs, particularly in uncertain times, which threatens the RSPs' access to the global financial system.
Locating trustworthy and capable partners in recipient countries also poses a challenge. An unreliable partner can lead to the loss of funds or reputation, causing RSPs to spend considerable resources on due diligence.
Additionally, the remittance business is largely cash-heavy due to the prevalent use of prefunding, a method requiring each participant to deposit cash to the expected value. This ties up capital, restricting cash availability and limiting business opportunities, especially during lengthy settlement periods.
Many remittance companies still operate manually, leading to high operational costs, inflexibility, and low resilience, particularly in the face of crises such as the COVID-19 pandemic, which forced many RSPs to close or limit operating hours.
On top of these issues, consumers often find the process of sending remittances complex and confusing, resulting in being overcharged. Hidden fees, lack of transparent pricing, and foreign exchange margins contribute significantly to the costs of sending money abroad. The global average cost of a remittance is a whopping 6.5%, which is more than double the 3% target set by the UN as a Sustainable Development Goal.
How TurinWallet is Solving these Challenges
TurinWallet offers innovative solutions to these problems by leveraging the advantages of the Lightning Network. This second layer solution on the Bitcoin network enables instant transactions, reducing the need for prefunding and the associated cash flow constraints. If you want to learn more about how the Lightning Network is solving many issues as payment solution check this other blog.
By using the Lightning Network, TurinWallet significantly reduces the fees associated with international remittances. The platform achieves this by conducting all transactions within Bitcoin's Layer 2, where transactions are virtually free. This approach drastically decreases the cost of sending money across borders, making the service accessible to everyone in the world.
Despite the transactions being conducted in satoshis, TurinWallet offers stability against Bitcoin's volatility. This stability is achieved by holding the users' Bitcoin in a stablecoin format (e.g., e€ or e$). This feature ensures that if a user charges 50€ in BTC to TurinWallet, they will always have 50€ in BTC, irrespective of fluctuations in Bitcoin's value.
Benefits of TurinWallet
TurinWallet's use of the Lightning Network not only speeds up transactions but also democratizes access to the digital economy. It is designed to be user-friendly, even for individuals with no prior experience in cryptocurrencies, making it more accessible to mainstream users. This focus on ease of use allows TurinWallet to reach a wider audience, including populations typically underserved by traditional financial institutions. Check this video out to see for yourself how easy it is.
The fiat on-ramp solution coming soon is another significant advantage, enabling users to charge their wallet from a credit or debit card with minimal friction. This feature makes the process of buying Bitcoin straightforward and user-friendly, lowering the barriers to entry for new users and facilitating the adoption of cryptocurrency.
Moreover, TurinWallet takes regulatory requirements seriously, conducting Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on all its users. It has also initiated processes to be listed in the Bank of Spain as an official custody cryptocurrency provider. These measures ensure that the platform complies with regulatory norms and safeguards user assets, reinforcing trust and reliability in the platform.
In conclusion, TurinWallet is a pioneering solution in the realm of international remittances. It is leveraging the power of the Lightning Network and the stability of stablecoins to address the longstanding issues faced by traditional remittance services. By providing a user-friendly, cost-effective, and fast solution for cross-border payments, TurinWallet is well-positioned to revolutionize the remittance landscape and bring the benefits of digital currency to a global audience.