Project background
In 2015, the total number of students studying abroad is about 523.7 thousand, of which: the number of students sending abroad for further study at the government’s expenses is about 25.9 thousand; 16 thousand studies abroad paid by companies; up to 481.8 thousand people study abroad at their expenses. Compared to the data of 2014, there is an increase of 63.9 thousand in 2014, about 13.9%. At the same time in 2015, the number of Chinese citizens traveling abroad reached 120 million, while spending about 104.5 billion dollars, an increase of about 12% and 16.7%. In 2015, China’s international remittances were 2.73billion dollars. With the increase in the number of people going abroad and the number of remittances, people have a more intense need for short-time consuming and low fees.
In 2015, China’s international remittances were 2.73 billion dollars.
Project feasibility
Mechanism feasibility
Through calculating, bitcoin price ratio in the United States, China, and the real exchange rate maintain a high level of consistency, providing strong support for the following work.
At the same time, via the actual operation (Model 1: single platform double account experiment Model 2: international dual platform), finally we choose the model 2 as the model of our platform, and the lowest fee is about 0.14%[1]（From USA to China）, about 0.05%(From China to the USA), much lower than the domestic rate of major financial institutions. What’s more, according to the mechanism of the process, the total transfer time can realize real-time, and spend a short period.
Bitcoin spot and futures price spread is generally not more than 2 yuan, the price can be considered both highly similar. Trade on BitVC, and it can effectively prevent the economics risks from abnormal fluctuations of bitcoin.
Feasibility of policy and regulation.
The document called Bank[2013]No.289 points out that the website providing services related to bitcoin should have been filed in the telecommunications regulatory agencies. And the website should require the users’ real name registration. Also when finding the suspicious transactions, the institution should give feedback to the China anti-money laundering monitoring and Analysis Center report immediately. So non-financial institutions and nonpayment institutions can provide services related to bitcoin operation obeying the laws.
The document called Remit[2007]No1. points out that the money which domestic citizens want to remit can not exceed about fifty thousand dollars or other currency equivalent charge. If someone wants to remit more than fifty thousand dollars, he needs to apply. The limit set in the platform fully meets the relevant laws.
[1] Single platform dual account: select China bitcoin trading platform – Huobi website, respectively, use CNY account and USD account for operation.
Cross border dual platform: select Chinese bitcoin trading platform – Huobi.com, the corresponding U.S. platform - CoinBase, and do the double platform transactions operation.
Single platform dual account: select China bitcoin trading platform – Huobi website, respectively, useCNY account and USD account for operation. Cross border dual platform:select Chinese bitcoin trading platform – Huobi.com, the corresponding U.S. platform - CoinBase, and do the double platform transactions operation.
Project mechanism
Take the cross border remittance between China and the United States as an example: China’s customers want to transfer money to the United States friends or relatives.
While users begin to fill orders and the system will lock the rate, the preferred method will get one domestic bitcoin trading platform, one foreign bitcoin trading platform according to the real-time data. Then users fill in the remittance table with details and submit orders. After platform confirming the receipt of customer’s money and remittance fee, the dollar account of the platform transfer the USD to the target account. The arrival time will depend on the remittance time in the USA.
During the remitting, automatic transaction set will do related operations in the two platforms which preferred method got before: the platform will purchase some bitcoins equal to the remittance, then transfers the bitcoins to the bitcoin account in the USA. Then the bitcoin will be sold, and the money will be recharged into the USA account.
In the transaction process, to prevent the loss of funds caused by the bitcoin prices changes, the trading platform has an automated set: using the customer funds to buy and sell the bitcoin in the futures market, playing a role in hedging.
What about our website?
What about our user?
Our Group - Finanda
The name of our team is Finance Panda and Finanda is short for it. Finance represents the financial field and panda signifies that our team is situated in Chengdu, Sichuan, China. Finanda is a vigorous and well-cooperated team which is made up of seven undergraduates and one graduate, whose professional knowledge relates to computer science, finance, information system, statistics, etc. And, we deeply appreciate Yang Qin and TankaiZhen who give us a great deal of help.
