Bancor is set to launch a network of blockchain-based community currencies in Kenya. The new initiative is designed to help alleviate poverty via the stimulation of local and regional commerce and peer-to-peer collaboration. The company announced today June 18, in a press release
Bancor, based in Switzerland’s ‘Crypto Valley’ of Zug is a decentralized liquidity network that allows users to hold any token and convert them to any another token within the network, with no counterparty, at an automatically computed price, using a simple web digital wallet. Its formula includes transaction size and requires no order book, so prices are transparent. Buying and selling on Bancor platform occur through smart contracts, so no deposits and exchanges are not needed.
The company will be seeding new currencies by contributing capital from the proceeds of its $153 million ICO in 2017.
Bancor will partner Grassroots Economics, a Kenyan non-profit foundation which currently runs community currency programs in six locations across Kenya, and serves over 20 schools and 1,000 local businesses.
Grassroots will use the Bancor Protocol to expand its existing paper currency system into a blockchain-based network. The new tokens will be tradable using fiat or crypto on the Bancor platform, which the organization hopes will allow global users to support local communities from afar.
Grassroots Economics will use the Bancor Protocol to expand its already existing paper currency system into a Blockchain-based network. Community members and global supporters of the initiative will have the option to trade the local currencies via the open-source Bancor Protocol using fiat or any of the popular digital currencies.
Will Ruddick, the founder of Grassroots Economics and the new director of community currencies of Bancor, will head the Kenyan blockchain-based community currency project from Nairobi, the nation’s capital.
Many people perceive blockchain as a platform for positive change – one that could disrupt the global economy and address many of the socio-economic and political issues that countries are facing. In May last year, The United Nations World Food Programme (WFP) deployed a cutting-edge blockchain technology to make cash-based transfers faster, cheaper and more secure. This initiative made it possible for more than 10,000 refugees to pay for their food using entitlements recorded on a blockchain-based computing platform.