System D (http://en.wikipedia.org/wiki/System_D) is a $10 trillion market, primed for crypto currency adoption. About 35% of populations in emerging market are banked, while mobile penetration is 50% and projected to rise considerably. Half of the world or so is unbanked, many will have a mobile in a few years.
One way of getting Peercoin into the hands of System D, is by extending loans that goes into businesses. I think much could be learned from looking at how micro-lending operations works today. They have people on the ground, education about the importance of paying of debt and so forth and so on. They also have many middle men, banks, skimming money.
It’s a worthy cause and if something like this were to happen, it could lead to something amazing.
There was a very brief conversation on something a little bit similar here.
After thinking a bit more about it, I think that it is probably unethical to promote the use of something as experimental as cryptocurrencies to people who can’t really afford to lose the money, e.g. low income countries.
Also, regulatory issues mean that it may not be too popular for many people anyway…
It’s still an interesting topic though, and there are probably good uses for it somewhere.
What you are saying is just that those people shouldn’t try new things to get out of poverty. From what I have seen, most poor countries are poor because they are afraid to try new things due to low educational, social, and political reasons.
What you are saying is just that those people shouldn’t try new things to get out of poverty.[/quote]
I’m not really saying that, just that I don’t agree with actively promoting something completely unproven to people where it could have serious effects.
I’m not really saying that, just that I don’t agree with actively promoting something completely unproven to people where it could have serious effects.[/quote]
Almost every new thing is considered unproven by many people because it is new. Cryptocurrency is no difference. There is a lot of risk and opportunity for everybody, rich or poor.
I think its doable in a responsible manner. Let’s for a second forget the regulatory concerns that in some countries this implies paying the obligatory bribe and focus on the volatility of Peercoin which I think could be a major concern.
First you establish an exchange.
Then you create a borrower.
The exchange rate in terms of local currency (or perhaps dollars) is used to peg the price of the debt.
Part of the lending procedure would now be to sell the peercoins on the exchange, thereby raising money for the borrower.
The borrower have now borrowed money, the volatility risk have been offset to a speculator willing to take on the risk.
When settling the debt, the borrower buys peercoins including the interest (also decided when pegging the price).
(The organization helping people with these, of course provides liquidity if necessary to protect against price manipulators.)
Should peercoins drop to zero, borrower would not run into trouble.
Should peersoins go up 10 000% borrower can still manage to pay down the debt.
The borrower will be able to finance the startup.
Lender will be taking on the volatility risk and return of capital risk and in exchange get some interest.
Since money transfers will not have to go through legacy banking channels, the cost of doing all of this is lowered.
This way a natural market will also be established where people will be able to learn about peercoins.
EDIT:
Note I’m only talking about Peercoin here (not NuBits).
and focus on the volatility of Peercoin which I think could be a major concern.