Bitcoin Global News (BGN)
June 19, 2018 -- ADVFN Crypto NewsWire
-- Bancor, the already successful decentralized
exchange that likes to call itself a decentralized
liquidity network, is moving away from simply facilitating numerous
different token transfers and towards non-profit work with
Cryptocurrencies.
Bancor’s latest effort involves
facilitating the creation of native cryptocurrencies for Kenyan
communities so that they can start up a new form of commerce and a
new network of payments, overall.
In launching this particular
network, Bancor is getting together with a charity
called Grassroots Economics, which already
has its feet on the ground, leading six of what are called
community currency programs in Kenya.
According to an article by Coin
Desk on the subject, these programs already help 20 schools as well
as 1,000 businesses, with the ambitious goal of one day ending
poverty.
What you might naturally be
wondering at this point is: how does this partnership work, overall
and what are community currency programs?
The easiest answer at this point is
that Grassroots Economics plans to use what is called the Bancor Protocol to
shift its current program from a dependence on paper currency to a
new dependence on the Blockchain.
If you’re not already aware, the
Bancor Protocol is a new way of using smart contracts to move amongst
numerous cryptocurrencies, with the help of what are called smart
tokens.
Essentially, smart tokens live behind
the scenes and facilitate the exchange of all cryptocurrencies that
are supported on the Bancor network.
If you look at how each transaction
is done with a Metamask wallet, for example, you’ll
see them only in terms of the middle point where your coins are
sent before reaching their final destination.
With their new usage of the
Blockchain, Grassroots Economics hopes to make it easy for global
cryptocurrency owners to support their cause from any place in the
world.
Secondly and perhaps more
importantly, the partnership will include a stable coin that will
be pegged to the Kenyan fiat currency, the Shilling.
The aim of this stable coin is
reportedly to make it easy for users of the new Kenyan Blockchain
to convert their crypto into all local fiat currencies and
therefore, it seems that Grassroots and Bancor are not aiming to
cut fiat out of the Kenyan economy in any way.
What they are trying to do is allow
more people to become the equivalent of banked, without doing
business with traditional banks.
At the same time, it is hoped that
these new users will see the benefit of using crypto and owning
their own money, instead of being dependent on a financial
institution.
As the project goes live, one of
the key question to keep under consideration will be: how will
Grassroots and Bancor attract more users beyond those that already
trust the existing community currency projects?
Secondly, given the fact that this
project are based on paper currencies, how will these people be
convinced to trust digital currencies, which they might not have
any experience with, or knowledge of, at all?
By: BGN Editorial Staff
News:
Bancor
Cryptocurrencies
Blockchain