Cryptocurrency Could Deliver Financial Democracy

Before we get deeper into this topic, we need to briefly understand the term 'financial democracy'.  It is surely not a staple word in textbooks, not at least for now. Borrowing from political jargon, the term democracy in terms of finance would imply that, everyone has equal access to financial services and products.

It might come as a surprise to know that, billions of people across the globe do not use banking services today. These people belong to both developing and developed nations. It is no secret that millions of Americans are either un-banked or under banked. The reasons for this range from, a lack of knowledge, inconvenience or just the feeling that they are way too small, to participate in the imposing financial and banking world. 

Finance is not just about putting money in a bank and withdrawing it, as and when required. It also involves growing your savings and investing spare funds. Managing finances would also cover, the possibility of protecting savings and investments from inflationary forces. While it is true that all these features are covered in the currently existing financial world, their access is limited for many reasons. 

Takes no serious research to reveal that the common mobile phone, has today penetrated into remote areas and is utilized much more widely than the banking system. This is what brings us to the fast growing world of cryptocurrency. Running on existing mobile services, crypto related services are fast being recognized as being both effective and useful. 

Taking Nigeria as an example where, crypto legislation has still not fully evolved. A significant number of Nigerians trade Bitcoin and payments are often settled using the crypto. The convenience of settling cross border payment obligations, using cryptocurrency has already gathered pace in the African nation.

While trading cryptocurrency does involve risks due to speculation, we now have much safer options available to crypto investors. A stable coin is a crypto that is connected to an asset that, is known and accepted for its stability. Many stable coins are pegged to the US dollar which means that, their value remains equal to the dollar. An investor could put money into a stable coin to protect against, the devaluation of the local currency. This is desirable in cases where a currency is known to significantly deplete against the US dollar. 

One might claim that all these options are available in the traditional financial world too but, there is a clear difference. In the case of the crypto related options mentioned in this report, access is available through regular mobile phones and similar devices. Another important element relates to the size of the transactions - an investor could buy a tiny fraction of a high priced cryptocurrency. This is surely not the case with products and offerings, available through traditional finance.

This report does not claim to be a guide in crypto investing. All we intend to do is to show that, the utility value of crypto products is much higher than currently realized. Crypto transactions can be conducted directly, without an intermediary like a bank or financial institution. This along with the increased reach of mobile services and the internet, promise to make the crypto world even more inclusive. That could best be described as the democratization of finance!

 

GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.  

 

 

                                                                                     

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