Step-by-step guide for remittances from Brazil
Bitcoin, the engine for remittances
Making a remittance from and to Brazil is not as easy as compared to many other countries. It is a very cumbersome process, often surrounded by a lot of red tape, incompetent and uninterested banks, high fees and very unattractive exchange rates.
This guide will detail step-by-step on how to set up your own Bitcoin bank, transfer the funds you have in your bank to anywhere in the world in about an hour and at a very low-cost.
What is Bitcoin
Bitcoins are a digital token or commodity accepted by groups or people in exchange for services. Bitcoin is the world’s first decentralized means of wealth transfer and as such, incorruptible. The prolific implications of this new technology are astounding.
Bitcoin is still an experimental new digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to work with no central authority: managing transactions and issuing money are carried out collectively by the network. Bitcoin is also the name of the open source software which enables the use of this currency.
Q. What is Bitcoin?
A. Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.
Bitcoin offers many advantages over traditional and other electronic currencies. Nobody owns or controls the Bitcoin economy. Utilising an ingenious decentralized structure, Bitcoin relies on cryptography and mathematics to make sure security and reliability. It is secure, reliable and eliminates almost all overhead seen in traditional banking.
- Bitcoins are sent easily through the Internet, without needing to trust any third-party.
- Are irreversible by design
- Are fast. Funds received are available for spending within minutes.
- Cost very little, especially compared to other payment networks.
- The supply of Bitcoins is regulated by software and the agreement of users of the system and cannot be manipulated by any government, bank, organization or individual. The limited inflation of the Bitcoin system’s money supply is distributed evenly (by CPU power) to miners who help secure the network.
Is it legal?
This is a very good question, and to be honest I don’t know. I am neither a lawyer nor a judge, so I won’t give you any legal advise here. I would welcome any insight from Brazilian lawyers on this subject.
The only intention of this guide is to show you a method on how somebody could make a remittance at very low costs and almost instantaneously. The only thing I am 100% sure of is that Bitcoin is an extreme disruptive technology, which has the potential to fundamentally change the current worldwide corrupt financial system. There will be no place for the MoneyGrams and WesternUnions of this world.
One of the best sources to start with is with the Bitcoin Wiki. A wealth of information in many languages can be found at this wiki. If you would like to dive a bit deeper have a look at this Bitcoin forum.
Have great fun with the Step-by-step guide for remittances from Brazil
Step by step guide
Step 1) Open an account at one of the larger Bitcoin exchanges: Mt.Gox or Intersango;
Step 2) Open an account at MercadoBitcoin, or buy your Bitcoins at a cash exchanger at localbitcoins; The following steps only refer to MercadoBitcoin and Mt Gox
Step 3) Verify your Mt.Gox account and MercadoBitcoin account by scanning and sending a photo ID and utility bill. This may take a business day or two, but will not have to be repeated for future transactions;
Step 4) Deposit your Brazilian Reais on the bank account of MercadoBitcoin. Detailed instructions will be sent to you;
Step 5) Once the funds are added to your MercadoBitcoin account, buy Bitcoins by clicking “comprar” and entering your order. You will be charged 0.65%;
Step 6) Using the withdrawal (Retirado) page on MercadoBitcoin, send the Bitcoins you bought to your Bitcoin address on Mt Gox (this will take about an hour to complete, as the Bitcoin network verifies the transaction;
Step 7) Sell your Bitcoins on MtGox for US$, Swiss Francs,Yen or Euro. You will be charged between 0.4 and 0.6%;
Step 8) Withdraw your position using either vouchers, bank transfers, transfer for free your Bitcoins to your own localbitcoins cash exchanger . Withdraw fees vary by method.
Of course there are many varieties on the above guide. I really hope this information has value to you. If you believe it has something new to you, something which you haven’t heard from before and will bring you a bit more freedom, I will appreciate if you make a small donation to keep this voluntary blog up and running.
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