A new peer-to-peer IOU system is being developed by crypto-platform Sikoba.
Founded by Luxembourg-based financial consultant and researcher Aleksander Kampa, Sikoba aims to formalise the IOU or informal credit market by registering, tracking and clearing the debt on the blockchain through a sikobaPay mobile app.
The platform is looking to sell up to 15m Sikoba (SKO) Ethereum tokens through an initial exchange offering, which is a form of initial coin offering, so it can complete the development of its proposition and launch by the end of 2020.
Businesses would then source credit from their own network and agreements can be stored on the app so there is an audit trail.
SKO tokens would have to be used to purchase Sikoba gas tokens (SKS) by businesses to cover transaction fees.
Firms would also be able to access credit from other users of the Sikoba app through their own network.
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“Informal credit is widely used by small and micro-businesses in developing countries to overcome money scarcity,” a marketing presentation from Sikoba said.
“However, informal credit has certain limitations, including a lack of legal recognition, the inability to transact outside of one’s trusted network and lack of a verifiable audit trail.
“The main goal of Sikoba is to overcome the limitations of informal credit.”
Sikoba is already working with a local project in Luxembourg to provide an electronic version of its Beki regional currency in its app.
It is also working with Colombian loans company Libranza Group to offer nano-loans to businesses.
Sikoba had previously run a pre-token sale to build a P2P IOU system in 2017 and the Sikoba team has since continued to develop its offering.
Any purchased tokens from 2017 can be exchanged for SKO coins.