Bancor starts community token network in Kenya to fight poverty
Bancor is a decentralized liquidity network that permits holding of any token and conversion to any another token within the network, with no counterparty, at an automatically calculated price, using a simple web wallet. Bancor 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 Bancor Network Token(BNT) was initiated on June 17, 2017, and works as the hub network token for the Bancor Network. All tokens in the network can be converted to and from BNT, and thus each other, at a rate calculated by the Bancor formula. The ever-expanding Bancor Network facilitates real-time pricing, new token discovery, community commitment, unique bounty events and much more. Smart tokens are the heart of the Bancor Protocol. They operate as regular tokens, in agreement with the ERC20 token standard used on the Ethereum blockchain.
Bancor announced today that it would start a new blockchain service in Kenya to start a financial system sketched to help remove the perils of poverty. The blockchain service intends to promote the formulation of “community currencies” to encourage local commerce and peer-to-peer collaboration. Community currency is like an alternative financial system that a group can use to promote the production and purchase of goods and services within a particular geographic region.
Announcing the launch of Bancor’s new #blockchain based community currencies in #Kenya. It’s time we put the power of money creation in the hands of the people who need it most. More in @VentureBeat https://t.co/zvLoHutb5j @grassEcon pic.twitter.com/uPG9dzsRXt
— Bancor (@Bancor) June 18, 2018
“We have seen the crypto world generate roughly $400 billion for new currencies, and we believe the same mechanics can be applied to help communities create wealth on a local level through the use of blockchain-based community currencies that fill regional trade gaps, enable basic income and food security, and promote thriving local and interconnected global markets,” Bancor cofounder Galia Benartzi said in a statement. It believes that the system would assist in tracking the exchange rate value for such local currencies and would permit outsiders to buy tokens to sustain community development and strengthen the overall cost of the tokens.
Bancor has collaborated with a local nonprofit Grassroots Economics, which has been supporting communities develop such currencies. It has employed the nonprofit’s founder, Will Ruddick, to manage the project. The Kenyan government once arrested Ruddick for his efforts, but he has been engaging with the government to develop community currencies. Though communities create physical money for such systems, the Bancor system would enable Kenyan communities to use tokens on a blockchain.
Image via Bancor Blog
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