The primary goal is to use Blockchain technology to solve the many inconveniences of the current tax refund process for international travelers using our EBCoin platform. Through our EBCoin Wallet app, we will be providing customers an instant tax refund service, a currency exchange and a convenient payment method solution using our EBC token. Duty-free shopping will finally be hassle-free and rewarding for tourists and merchants alike.
The quality of your international travel experience will be significantly improved by using the convenient EBCoin tax refund system over the traditional systems that are in place. You can be assured of 100% of your refund with no need to wait in long lines at the airport and no need to hold on to paper receipts. For added convenience, ATMs and Kiosks that support EBCoin will also be deployed at major airports around the world. EBCoin will soon be seen as the duty-free shopping currency of choice for international travelers.
First of all, travelers who spend money abroad have to deal with the major inconveniences associated with the current procedures to claim tourist tax refunds. Secondly, excessive fees are charged by agencies who act as an intermediary to provide the so-called tax refund “service”. As a result, travelers have no way to receive the full tax refund they are entitled to. Last, but not least, there is the excessive time and unreasonable fees required for exchanging foreign currency before their departure, since the tax refunds are usually issued in local paper currency.
Firstly, the EBCoin project will directly connect travelers with local customs agencies. Therefore, unnecessary steps will be eliminated, such as having to wait in long lines at the refund counter with paper receipts in hand. Secondly, we plan to decentralize the existing tax refund providers who have monopolized the tax refund industry and charge exorbitant fees. EBCoin will not deduct a brokerage fee, so travelers can get 100% of their tax refund. Further, with the deployment of ATMs and Kiosks optimized for EBCoin, travelers can instantly exchange their refund at any time to their preferred currency before their departure.
EBCoin is backed by KR Partners who have 10 years of experience in providing global Payment Gateway solutions under their brand name EximBay. They have been providing a wide range of services in many countries, including online/offline payments, dynamic currency conversion, and messenger based payment services for apps and barcodes. EximBay already has a vast network of merchants in their client base and with their established infrastructure, the EBCoin team can respond promptly to the needs of global travelers.
The EBCoin solution is not limited to any specific country, however, the largest tourist consumer market is currently from China. Therefore, in our approach, priority will be given to the importance of the Chinese traveler in the tourism industry. Japan and Europe are also target markets we consider a high priority. The regulatory climate toward cryptocurrency in China will have little effect on the value that EBCoin will offer. In this case, our EBC tokens will be used only as a utility token to receive the value of the tax refund in the traveler’s EBCoin Wallet while traveling abroad. From there it can be converted easily into the required paper currency using our ATMs or a Foreign Exchange Kiosk before returning home.
In short, yes. The versatility of the EBCoin as an ERC20 token enables its use as spendable currency itself. That means that EBC can be used as a payment method for purchases at participating merchants in any country, as the token will have a representative market value in FIAT currencies as well. (For more information, please see our white paper). For that reason, we are working with all the duty-free shops who are currently part of our vast network to accept EBCoin as a method of payment at the point-of-sale. For example, if a customer received a tax refund in their EBC Wallet while visiting Korea, at a later point while traveling in Singapore, they can now use EBC at the duty-free merchant in Changi airport to pay for their purchases. This highlights the valuable role that EBC tokens will play, both in exchanging cryptocurrency and FIAT currency.
Firstly, we see no place for existing tax refund companies in the EBCoin ecosystem. Therefore, partnership discussions with them are unnecessary, as we will effectively be their main competitors. Customers will be free to choose either an existing tax refund method or to use our vastly superior EBC based tax refund system. The focus of our future partnerships will be distribution companies who have an existing customer base for EBCoin, eg. travel agencies and telecommunication companies. We are also working hard to leverage existing partnerships that we have developed over the years as a leading global payment service provider.
EBCoin will follow the same procedure as existing tax refund agencies who secured existing lease contracts with airport authorities. Securing and funding lease contracts and equipment for Kiosks and ATM locations will be underwritten by the stakeholders who stand to benefit from the EBCoin platform. Other than the EBC Foundation itself, the other main beneficiaries would be government entities, such as airports, national tax administration agencies and tourism agencies, as well as operators of exchanges. We are engaging directly with each of these beneficiaries to engage them as stakeholders in our project to establish and secure the future of the EBCoin infrastructure. Specific benefits to each stakeholder will be:
The tax refund process itself will not be a source of revenue for EBCoin, as no brokerage or processing fees will be charged to customers for these transactions. Instead, revenue will be generated when payments and exchanges are made between EBC and FIAT currencies, as well as other cryptocurrencies. Resulting profits will be invested in technology development, infrastructure investment and marketing. As the value of EBC usage increases, demand will increase and the market value of EBC will increase simultaneously. EBC Foundation will continue to fund operations through crowd sale fundraising and the periodic, controlled sale of the remaining reserve of EBC tokens on the open market. If a greater revenue stream is required in the future to continue funding the EBC ecosystem, the introduction of fractional transaction fees can be considered.
The primary role of EBC Foundation is to facilitate the implementation and expansion of the EBCoin tax refund service to the global market. This includes engaging and negotiating with government agencies and airport authorities around the world. We will also select operators of foreign currency exchanges to be part of our network to expand the convenience of our service offering. This will also provide an increased transaction volume and revenue stream for these operators by offering an EBC to FIAT exchange service. We will further support FOREX operators by assisting them to expand their operations by opening additional kiosks in airports around the world. EBC Foundation will also focus on expanding their merchant network and implement promotional programs for their customers when using EBC as their preferred payment method.
For merchants, the time consuming and complex settlement process of existing tax refund systems will be fully automated. Processing fees for the duty-free transaction will also be greatly reduced, making it more affordable for merchants to introduce tax-free shopping, which in turn attracts more tourists. The more customers request EBC as an option, the more likely merchants will be to offer the refund service using EBC. However, it will be necessary to provide promotional incentives to merchants in order to expand the initial market base.
It is a supplier-oriented market that is supplied by $60B every year. It is difficult to search such a large single market.
The national tax is paid by EBCoin every year for $60B, reaching about $2B in domestic ($20B of tourism income in 2016).
From a user perspective, overseas consumption of Chinese tourists is 1.2 trillion yuan ($240 billion) in 2016. Even if the tax rate is set at 10%, it reaches $24 billion.
As the number of nations using EBCoin increases, EBCoin's demand will increase significantly each time. As the supply (EBCoin currency exchange) is less than the demand every year, demand will exceed the supply and it could lead to a rise in the coin price.
In addition, our target market is 1.2 billion tourists worldwide every year. We will be able to secure a huge coin user base and will create secondary demand (based on rewards and payment) on a planetary scale.
1. Foundation: Securing investment resources by creating additional demand from the introduction of tax refund in each country and raising the value of coin demand. Furthermore, securing additional resources by introducing transaction fees.
2. EBCoin listed Currency Exchange: Securing its own fellow countrymen as members of the exchange. Creating new opportunities to generate additional revenue through securing the fee for exchange from members and other coin transactions.
3. Infrastructure investment in airports in each nation: Based on EBC Foundation, we utilize investment source of foundation and the secured resources from EBCoin exchange.
*Primarily, the transaction fee is imposed on the transactions that occur in the exchange linked to our tax refund app. If the transaction fee is expensive than the network transfer fee, our own blockchain network will be introduced.
The EBCoin team will open their own exchange and expand partnerships with the major exchanges in each country. KRPEX, the own exchange of EBC Foundation is scheduled to open in the first quarter of 2018 and will be listed on the world’s major cryptocurrency exchanges, such as Bitfinex (Hong Kong), Bittrex, Poloniex (U.S.), HitBTC (Europe), Bitflyer (Japan) and Bithumb (South Korea) in the second quarter of the year. However, the purpose is not only listing EBCoin on the exchanges but securing business partners around the world is the ultimate goal. Moreover, EBCoin will publicize its technical value, use, security and stability through the listing on major exchanges in each country. This is a process that must be done to enter the major cryptocurrency system and put EBCoin to practical use. Ultimately, we want to expand the range of tax refund, exchange and payment services by raising the transaction volume and market cap to major cryptocurrency levels.
A cryptocurrency exchange plays a very important role in the EBCoin ecosystem.
In addition to providing (selling) EBCoin for tax refunds to merchants, it also allows travelers who received tax refunds to exchange their local currencies. We also carry out infrastructure construction projects, such as publicity activities for merchants in each country and the supply of automation equipment to airports. The fee for exchange is a major profit model.
The EBCoin team will build a strategic partnership with the exchanges that will lead EBCoin distribution in each country. In addition to revenues from existing sales transactions, each exchange earns additional revenue from the tax refund transaction. At last, they can obtain permanent customer influx channel as they secure the citizens who returned their homeland after the end of the trip.
KR Partners will play the role as above in South Korea and they plan to operate the trading system for various cryptocurrencies by default. Basically, each country will have a policy that gives one exchange a monopoly status. Listing for buy and sell will be extended regardless of business purpose.