Bancor network has announced its plan to launch a new network of community currencies that are based on the blockchain technology in Kenya. The primary aim of this project is to assist in reducing and alleviating the level of poverty by integrating and stimulating local and regional commercial sector and increasing peer to peer collaboration in the country.
Through the use of blockchain innovation, this new project will empower communities in the country to create and manage their virtual tokens, while shutting the obstructions that have prevented the utilization of community currencies. Bancor completed its Initial Coin Offering (ICO) in June 2017, and its network platform has continued to enable its users directly convert different tokens, skipping the need to exchange them in a crypto market platform. Co-founder of Bancor, Galia Benartzi, said in a public statement:
“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.”
In order to ensure the success of this program, Bancor has partnered with a Kenyan-based non-profitable foundation called Grassroots Economics, Bancor’s new Director of Community Currencies, Will Ruddick, who also runs Grassroots Economics is expected to be in charge of the project from Nairobi where he has lived for over ten years. Grassroots foundation supervises network currency projects in six different areas in Kenya, serving in over of 1,000 local businesses and 20 schools since its start. Ruddick and his team will utilize of the Bancor Protocol to extend Grassroots’ current paper cash framework into a blockchain-based system that plans to eradicate poverty and assemble stable markets using local currencies. Ruddick stated that:
“When communities have the same right as nations to create and manage currencies, they will unlock their full potential.”
Funding Bancor’s Project
Bancor will seed its first currency by donating a portion of the capital it raised during its $153 million token sales in June 2017. The Bancor Network enables investors to create cryptocurrencies that contain at least one balance in a connected currency. This enables incorporated currencies to be supplanted with each other without the requirement of a counterparty. The currencies also feature an inbuilt system which is designed to algorithmically determine costs in light of the supply of the currency and varies to its use. According to Benartzi; “Bancor will serve as one of several donors in the program providing initial capital to fund the token balances contained within each of the community currencies. In addition, Bancor will provide in-kind operational support, including technical and integrations work, marketing and hardware to get the currencies distributed and operational.”