After witnessing the Coinbase and BoA derps trying to patent “increased molecular agitation of dihydrogen monoxyde”, Paymium has decided to release its remittance protocol RFC to the public.
The process described by this protocol is in no way rocket science, but will still greatly benefit from being properly timestamped, and documented. Never hurts interoperability to speak the same language. This document is a work in progress, feedback is very welcome.
The implementation of remittances settled with Bitcoin obviously require liquidity sources on both ends of the remittance tunnel, this specification is to be implemented by exchanges or brokers that can efficiently transfer money in their local zone.
It leverages these local liquidity sources in order to provide streamlined money transmission features to end-users, without relying on the Bitcoin network to support the load of individual transfers, but only for settlement operations.
In essence, the remittance protocol is simply a way for an exchange to quote another exchange for a requested amount in fiat.
If, for example, Rhonda in the U.S. wants to send 2,000 € to Jean-Robert, in France, Rhonda’s exchange will end up presenting her with a “Please confirm you’d like to send 2,000 € to Jean-Robert at Paymium. This will cost you $2,250.67” message.
The settlement part isn’t covered by the document, for the pretty simple reason that settlement is a business matter, not a technical challenge. It would also vastly complicate everything. Maintaining a balance, manually settling daily, automating Bitcoin transfers when a threshold is reached are all valid approaches to settling these remittances.
May the capital flow!
 Commonly referred to as “hot water”.
 Read: “without relying on the big-blocks insanity”.