Skip to content

Latest commit

 

History

History
193 lines (144 loc) · 4.72 KB

File metadata and controls

193 lines (144 loc) · 4.72 KB

Diaspora Remittances

Overview

$100B+ flows to Africa annually. ACBU provides a cheaper, faster alternative to traditional remittance services.

Recommended Strategy: Multi-Channel

Tier 1: Crypto-Native (Fastest, Launch First)

Accept:

  • USDC (Stellar, Ethereum)
  • USDT (if needed)
  • USD Coin (Circle)

Process:

  • Instant conversion to ACBU
  • Smart contract handles it
  • 0.3% fee (vs 3-5% traditional)

Target: Crypto-savvy diaspora, younger generation
Volume: Potentially $10-20M Year 1

Tier 2: Mobile Money (Largest Volume)

Partner with:

  • MTN MoMo (17 countries)
  • Orange Money (18 countries)
  • Airtel Money (14 countries)

Integration:

  • ACBU as backend settlement
  • Users don't even know they're using ACBU
  • Just see: "cheaper, faster transfers"

Target: Mainstream African diaspora
Volume: Potentially $50-100M Year 2-3

User Flows

Option 1: USDC Direct Conversion (Recommended)

User Flow: Diaspora in USA:

  • Has: USD in US bank account
  • Wants: Send money to Nigeria

Step 1: Deposit USD

  • User sends USD to US partner account
  • Or: Crypto wallet (USDC deposit)

Step 2: Instant Conversion to ACBU

  • System converts USD → ACBU at spot rate
  • Uses multi-currency reserves to absorb USD
  • Mints ACBU immediately

Step 3: Family in Nigeria withdraws NGN/ACBU

  • Family has ACBU in their wallet
  • Withdraws to Nigerian mobile money/bank
  • Receives: NGN instantly

Option 2: MTN MoMo Partnership (For Non-Crypto Users)

User Flow: Step 1: Diaspora in UK

  • Has: GBP in UK bank
  • Uses: MTN MoMo app (international version)
  • Sends: GBP → converts to local currency

Step 2: MTN Backend Integration

  • MTN receives GBP
  • MTN API calls ACBU minting contract
  • MTN deposits equivalent local currency to reserves
  • ACBU minted to recipient's wallet

Step 3: Recipient in Ghana

  • Receives: ACBU in wallet (linked to MoMo)
  • Can: Withdraw GHS immediately
  • Or: Keep ACBU for future use

The Foreign Currency "Burn" Mechanism

Technical Process

When Diaspora Sends USD:

Step 1: USD Received

  • User sends: $1,000 USD
  • Destination: US partner account (Stripe, Wyre)
  • Or: USDC to smart contract

Step 2: Calculate ACBU Amount

  • Current rate: 1 ACBU = $0.85 (basket value)
  • Amount to mint: 1,176 ACBU
  • Fee (0.3%): 3.5 ACBU
  • User receives: 1,172.5 ACBU

Step 3: Reserve Management

  • USD received: $1,000
  • Sits in USD holding account temporarily
  • System identifies: "Need to buy NGN/KES/GHS..."
  • Daily batch: Convert USD → Basket currencies

Step 4: Conversion Execution

  • Use Flutterwave/Paystack FX services
  • $1,000 USD → ~620,000 NGN (18% allocation)
  • $1,000 USD → ~16,000 ZAR (15% allocation)
  • ... etc. for all basket currencies
  • Execute over 24-48 hours to avoid slippage

The "Burn" Concept

You're not literally burning USD:

Instead:

  • USD arrives → Acts as temporary reserve
  • Gradually converted to basket currencies
  • USD "dissolves" into 10 African currencies
  • Reserves remain balanced to basket weights

Think of it as:

  • USD is the "input fuel"
  • ACBU is the "output token"
  • African currencies are the "actual reserves"

Fastest Path: Start with USDC

Why USDC First

No Banking License Needed (Initially)

  • Crypto-to-crypto transaction
  • Avoid US money transmitter regulations early
  • Easier regulatory compliance

Instant Settlement

  • 24/7 operations
  • No bank holidays
  • Sub-minute confirmations on Stellar

Large Existing User Base

  • Millions already hold USDC
  • Easy to acquire (Coinbase, Binance)
  • Familiar to crypto users

Interoperability

  • USDC exists on Stellar already
  • Easy to bridge
  • Strong liquidity

Implementation

Smart Contract on Stellar:

function mintFromUSDC(amount) {
    1. User sends USDC to contract
    2. Contract verifies USDC received
    3. Contract fetches ACBU/USD rate from oracle
    4. Contract mints equivalent ACBU
    5. Contract sends ACBU to user wallet
    6. Backend: Flag for USD  Basket conversion
}

Then Add:

  • Month 3: MTN MoMo integration
  • Month 6: Bank transfer option (via Wise/Flutterwave)
  • Month 9: Credit card deposits

Partnership Structure

With MTN Mobile Money (17 African countries)

Integration:

  • ACBU as "payment rail" option in MoMo
  • Users see: "Send as MoMo" vs "Send as ACBU"
  • ACBU option: 50% cheaper fees

Technical:

  • MTN provides: Fiat on/off ramps
  • You provide: Cross-border settlement layer
  • Settlement: Daily batching, net positions

Similar Partnerships

  • Orange Money (18 countries)
  • Airtel Money (14 countries)
  • Vodacom M-Pesa (7 countries)

Related Documents: