Wednesday, 17 January 2018

The Bancor Protocol will enable community currencies to thrive.

 Many of us have read the news reports about high levels of inequality in the world today and many have experienced the adverse effects of unfettered globalisation. Economic analysis clearly shows that since the financial crisis of 2008/09, the major fiat currencies of the world have been manipulated and devalued because of central bank interference.

When fiat currency is spent locally, much of it’s value disappears from the community and into the hands of multinational corporations.

In response to this centralised manipulation, a few paper based local currencies have been born. Whilst some of these have had a moderate uptake, their use is limited by a lack of community awareness, small scale business adoption and the fact that they remain outside of the digital domain.

Cryptocurrencies are, by their nature digital and decentralised (peer to peer). They are free from manipulation by centralised authorities. What if there was a platform that allowed decentralised trading of cryptocurrencies and smart tokens without having to rely on a counter party for liquidity? What if this platform also allowed communities to easily create their own digital currencies and smart tokens by simply using a chat bot?

Such a platform exists and it is called the Bancor Network. Once registered on the Bancor Network one has access to a unique decentralised trading environment. The growing range of smart tokens on the Bancor Network are fully liquid for each other due to the Bancor Network Token (BNT). What this means is that the availability of a smart token for trading is not dependent on other parties selling the same quantity of the smart token.

The number of potential use cases for community currencies that will be created on the Bancor Network is huge. Bancor can revolutionise the way money is created and how it is used and therefore change the world economy for the better.

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