BondMason co-founder to launch cryptocoin
THE CO-FOUNDER of peer-to-peer investor BondMason is backing the launch of a cryptocoin aiming to provide a digital currency for those living in areas with high inflation or under-developed banking systems.
Stephen Findlay, chief executive of BondMason, is working with global cryptocurrency expert and University of Cambridge Research Fellow, Dr Garrick Hileman on ARC Reserve Currency.
The project is separate to the work of BondMason and the idea is to use an initial coin offering (ICO) to create a tradeable ‘stablecoin’ – a form of cryptocurrency that is asset-backed so is less volatile than others such as Bitcoin – called ARC.
This will be achieved by proceeds from the ICO being placed into a ring-fenced, not-for-profit company called ARC Fiduciary Ltd which is regulated in Jersey by the Jersey Financial Services Commission.
The proceeds are then held in cash reserves and invested into fixed income opportunities to retain value for the holders of ARC coins.
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Investors can use fiat or cryptocurrency to back the coin. The minimum subscription is $25,000 (£18,500) in fiat money or $1,000 in the equivalent crypto.
“We have been looking at blockchain and cryptocurrencies for some time and one of the best use cases which we felt interested in was helping people in developing countries where inflation is high,” Findlay said.
“If you are a dentist in Zimbabwe and have savings at the end of the month, you currently don’t have any options to do that.
“Putting it into a stable cryptocurrency means it can’t be taken away.
“There are 2bn people living in jurisdictions with inflation above five per cent or an undeveloped banking system.”
Findlay says the coin also provides a more stable cryptocurrency for speculators and traders.
The ARC coin is expected to go live next week.
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