Introduction
Technology is a great enabler, they say! We are seeing exciting technological developments in the crypto space. Telcoin is adding to this excitement by planning to introduce Telcoin, a cryptocurrency that uses mobile phones for enabling electronic remittances from one person to another.
Telcoin heralds the coming together of two key players: Blockchain Technology and telecom companies. While blockchain technology brings in speed, reliability and an ability to transcend boundaries, telecom companies offer the ever so important reach to the equation. This combination is a match made in heaven!
Telcoin plans to offer telcoins to their mobile network partners, who in turn will enable their customers to carry out digital transactions on their platforms.
Why partner with Telecom companies
By partnering with Telecom companies, Telcoin is addressing the significant issues that are affecting the current market scenario, namely, Trust, Reach and KYC compliance.
The trust factor concerning cryptocurrencies has taken a significant beating owing to its instantaneous nature of transactions and also the hacking stories doing the rounds in the recent times. By partnering with telecom operators, Telcoin is capitalizing on the already existing trust the customers have placed in their operators. Using telecom companies as the front-end, Telcoin can garner the trust of mobile phone users.
As per the statistics released by World Bank, there are 5 billion mobile phones in the world compared to around 1.2 billion active bank accounts! Telcoin is smart to capitalize on this broader accessibility to solve the Reach problem. By incentivizing the telecom operators to join the partnership, Telcoin is creating a win-win scenario for both the parties, thereby encouraging willing participation from the operators.
Another hindering factor in the current scenario of cryptocurrency exchange market is the mandatory requirement of traditional bank accounts and KYC (Know Your Customer) authorization. Telcoin is leveraging the already existing KYC compliance with Telecom companies to make regulatory compliance for telcoin transactions via mobile network less cumbersome.
Background
It has been found that more than 50% of the global adult population is unbanked, meaning, it does not have access to banking services. In contrast, almost 100% of the global adult population owns a phone! It is this disparity that led to the envisioning of Telcoin with the motto to enhance the financial inclusion of people in the mobile world.
Telcoin strongly believes that Telecom companies will be keen to partner in its journey, considering that a regulatory framework will be soon in place to manage cryptocurrencies and mobile e-commerce.
Working with Telecom companies
While telecom companies have shown a keen interest in partnering with Telcoin as it offers them a potential revenue stream, they rightly have concerns about the regulatory uncertainty surrounding cryptocurrency. To overcome this challenge, Telcoin proposes a two-thronged approach:
Aggregator Partnerships: To work with global, regional, and local aggregators to initially connect to as many telecom airtime and mobile money platforms globally as possible. Exchanging Telcoin for airtime could offer a workable solution for financial inclusion in markets like Kenya, where mobile money usage is low.
Telecom Partnerships: Telcoin plans to incentivize the telecom operators for partnership by issuing coins. Telcoin will start initially with a proof of concept (POC) trial agreement to demonstrate the technical feasibility of all the proposed digital transactions on the mobile platform. Telcoin will also deliver the survey results for the regulatory feasibility of cryptocurrency and the POC results with an actionable project plan to the telecom operator.
Monetization
The current commercial model is based on charging a transaction fee of 0.5% when subscribers buy or sell Telcoins from their mobile operator. There will also be a small ethereum transaction fee for every Telcoin transfer (ethereum gas), which varies but is currently around US$0.25 per transaction. For a US$200 remittance, a user would only pay a $2.25 fee, or 1.125%, significantly less than the global average cost of remittances which stands at 7.42%.
Telcoin will also stand to gain when a mobile operator decides to buy or sell Telcoin in exchange for local currency.
Telcoin Exchange API
Telcoin will offer an Application Programming Interface (API), the Telcoin Exchange API to enable compatibility with multiple mobile networks and third-party wallets. Initially, the implementation could be in the form of easy ‘plug in and play’ model.
Telcoin Blockchain and ERC20 Token
Telcoin will initially focus on the $500B International Remittances market, currently dominated by players like Western Union, that will allow subscribers easy access to cryptocurrency. Soon, it plans to leverage its positioning to bring roaming spending (offer tourists access to local currency spending), international aid (facilitating disbursements to underbanked), and online payments in general.
Instead of reinventing the wheel, Telcoin has been smart to use the ethereum blockchain to tap into the trust factor it already enjoys.
Telcoin proposes the use of ERC20 Token as the exchange currency. An ERC20 token is a cryptographic asset issued on ethereum blockchain for trading between mobile users.
Issuance Model
Telcoin will be distributed to mobile networks based on an incentive model, and they will, in turn, sell it to the subscribers. This model is simple, yet is the most prominent differentiator for Telcoin, as it provides the much-needed liquidity for users who want to buy Telcoin.
Telcoin will be exclusively distributed by GSMA mobile network operators and their virtual network partners. Telcoin issuance will occur at a rate of 5% annually based on the stage of Telcoin integration.
Telecom Transaction Fees or Taxes
Although Telcoin would not want Telecom operators to charge any transaction fees, they will be allowed to charge fees, especially in the initial stage to safeguard the existing mobile revenues.
Secure transactions
The sign off requirement from at least two of the three keys provided at the device, operator and Telcoin levels for any digital transaction makes the process significantly secure!
Challenges
In its exciting journey towards “Financial inclusion for a mobile world,” Telcoin does face a few challenges in the form of monetary regulation both on the Telecom and blockchain/cryptocurrency sides. However, tides are turning in favor of positive regulations and Telcoin has positioned itself at the right time & place to leverage these revolutionary developments.
Why Telcoin
There is little doubt that Telcoin is strongly poised to take the mobile world in crypto space by storm with the following unparalleled advantages it brings to the table.
Telcoin is Price competitive
Offers disruptive user convenience
Can address the existing problems in the crypto space by smartly leveraging what telecom operators have to offer concerning Reach, Trust and KYC compliance
Highly workable business and commercial models that are creating a win-win scenario for both the players, namely. Telcoin and Telecom Operators.
A crypto-mobile innovation is about to unfold, and the world is waiting with bated breath!
You can follow Telcoin on:
Website: https://www.telco.in
Medium: https://medium.com/@telcoin
Facebok: https://www.facebook.com/telcoin/
YouTube: https://www.youtube.com/channel/UCBEKBh64cZy7U3O7VtKsLOg
Telegram: https://t.me/TelcoinCommunity
