A Major African Company Is Testing MT Wallet For International Value Transfer - A ModulTrade Case Study
A major client from Senegal is conducting a pilot project of using MT Wallet services for its international value sending operations. During the operation, value from Senegal is transferred to Turkey with the A-EUR stablecoin, which is integrated into MT Wallet. The goal of the project is to make the process easier, faster, more secure and cost-effective than earlier solutions.
Sending value is not fast and especially not cheap in many parts of the world. Big incumbent market players have been exploiting this segment for decades. However, with the latest round of technological advancements, new alternatives are offered to users.
Our client, a company located in Senegal, Africa, is especially heavily exposed to the local banks and to their terms and conditions when it comes to sending money. Hence, it is not a surprise that this client was exploring alternative solutions to rationalise its cost profile on international value sending operations.
With its MT Wallet product, ModulTrade is offering an easy, fast and secure value sending solution. The MT Wallett securely stores digital tokens, that can be easily and securely received or sent at a very reasonable rate, thanks to its underlying blockchain technology.
Also, thanks to the recent rise of different stable tokens, new tools are offered to manage the price volatility risk represented by the major tokens.
In this pilot project, we are applying a hybrid solution, where fiat money is converted into digital tokens and then back to fiat. We are using A-EUR, which is a stable token targeting an exchange rate of 1 to the euro. The A-EUR is an ERC20 token, which means it uses the Ethereum blockchain and it is integrated into MT Wallet. The transfer of the tokens is fast and secure, while there is no exposure to price volatility risk relative to the Euro. At the end of the process, the recipient can easily convert A-EUR into fiat EUR if she will.
The process involves the following steps:
- Converting fiat money to digital tokens -> get A-EUR in MT Wallet
- The sender uses MT Wallet for transferring value to the recipient’s address at a very low cost.
- Upon receiving the A-EUR tokens, the recipient can decide whether to convert them back to fiat or just keep them in her wallet and use them for future transactions. She can easily do that without worrying about price volatility risk of digital tokens. It is like having fiat euro.
- If the recipient decides to convert A-EUR into fiat EUR, she can easily do this with the help of MrCoin, a digital token broker. In that case, the recipient will receive the converted amount on her banking account.
The process ultimately provides our Senegalian client with greater freedom to trade and with a cheaper solution for sending value globally.
Upon successful project completion, ModulTrade and its partners (Augmint and MrCoin) will be able to scale this solution up and provide a new and better alternative for international value sending transactions.