Bitcoin India

Mondato - Underground Remittances

bitcoin:

In a newsletter from Mondato (@MondatoPortal) is an article on how underground money transfer networks are subverting central authorities as well as the traditional financial system.  Excerpts:

As mobile penetration continues to grow exponentially, even in restrictive economies such as North Korea and Iran, underground value transfer may soon find a new vehicle – the mobile phone.

Newly emergent virtual currencies like Bitcoin have the capacity to fly beneath government regulations, opening alternate channels for subversive money transfer.

The international community may be powerless to stop the emergence of Bitcoin, particularly in contexts such as North Korea, Somalia, or Iran where there is demand for alternative monetary systems.

Bitcions will become more global once Coinapult expands their SMS Wallet capability beyond the U.S. and Canada.  With that, bitcoins can be sent to any mobile phone with SMS text messaging.  Compared to mobile transfer systems like M-PESA, fees for bitcoin transfers are trivially small.

Coinapult’s SMS text messaging wallet might have limited potential as a subversive tool, however.  Unlike native Bitcoin transactions, Coinapult’s approach is dependent on the mobile phone network.  This leaves it vulnerable to disruption by the authorities who control the network and could block messages send to or from Coinapult.  Additionally, text messaging is not a secure communications protocol and there might be no method that would protect against a dishonest person who has access to the telecom operator’s systems.

The article’s accompanying infographic shows the scope of remittances including those to nations where there are restrictions.

Previous Posts - Twitter: @BItcoindia