Building An Alternative Community Banking System

Our vision is to create a decentralized community banking system focused on the developing world. There are billions of underbanked in South America, Asia, and Africa who are already connected to the Internet and who have mobile phones.  There are many who struggle to put food on the table like those in Venezuela and others experiencing currency instability like those in Argentina and Nigeria. Many are looking at cryptocurrencies as an alternative money and there is a far higher adoption rate in developing nations than those in the developed world.  Most of those in developing nations just lack opportunities to contribute and earn an adequate income to improve their daily lives. We want to find an easy and secure onramp for anyone with access to the internet a way to not only participate, but thrive in the new global economy. We want to bring decentralized finance (defi) to the entire world.  

A globally interconnected society enables frictionless payments, remittance and commerce that will improve the lives of all those who participate together.  In the future we plan to have lending, crowdfunding, investment banking and more advanced financial services such as AI assisted portfolio management. Cryptocurrencies allow us to build a parallel financial system that is frictionless. The economics of the future may not only consist of economic value creation in a traditional sense.  For example Voice is a social media platform on EOS funded by Block.One that will allow anyone to earn token rewards and economic value by creating content and expressing themselves. We’d like to complement projects like Voice so its users can seamlessly use our defi platform with the economic value they create through social media. 

We’re building bitcash as a virtual company (aka DAC – decentralized autonomous company) that enables software-based governance and that rewards users who invest and contribute to the company and earn tokenized stake.  Furthermore we give back to the community users who stake crypto (eg. EOS) on our system so they can earn rewards based on the transactional activity and value they generate for our platform.

Challenges for Defi Applications & Crypto

Crypto is great.  You can instantly send digitally native money & value around the world at negligible cost. It has fees that are much less than banks. There is no freezing and no limits. It  is just better money. Crypto also enables better banking. The global payments industry generates $1.9 Trillion in revenue. It composes 35% of all banking revenue. Loans account for most of the rest of the banking business.  Furthermore global investment banking & brokerage is a $313 billion revenue industry. Tokenization, ICOs, DAOs and DACs has and will continue to revolutionize this industry. Most people want a better way to pay. A better way to get loans.  And a better way to get funding or invest.  

However crypto has major disadvantages.   

  1. It’s too hard for people to use.  Most people will be uncomfortable using a new unit of account that fluctuates wildly.    Also who really wants to know about asymmetric public key cryptography and hashing? Or RAM or CPU resources on EOS?  Most apps have a UI/UX like airplane cockpit controls for airline pilots. All exchanges are built towards power traders with advanced tools.  Normal people love investing & trading, but it’s too much time and work. 
  2.  People forget passwords/private keys all the time.  It’s unusable if people have to take sole responsibility for keys.
  3. How do people even get into crypto?  There is too much onramp friction. In the US it’s mainly Coinbase/Gemini & local bitcoins. Local bitcoins is too expensive and a hassle. Coinbase & Gemini are too restrictive and intrusive with KYC/AML.  On top of that there are additional steps to get into innovative coins like EOS directly.

Solution  

  1. Start with a stablecoin solution that’s easy to use.  Focus on minimalist UI/UX and a wallet that grandma can use.  Also create an extremely simple exchange. One without an orderbook.
  2. Use KYC/identity hash, multi-signature & custodial schemes for private key recovery and more convenient security measures like pin codes, biometrics and hardware.  Give people peace of mind and security. (Refer to Block.One pass system
  3. Create an easy to use and unregulated peer-to-peer OTC platform that is easier to use than local bitcoins.