PRESS RELEASE
First-ever primal bank-backed digital currency tin give notice accelerate the digitization of transactions, infuse trust inwards payments systems, as well as drive greater fiscal inclusion
REDWOOD CITY, Calif., Dec. 9, 2015 /PRNewswire/ -- Omidyar Network announced today a for-profit investment inwards eCurrency Mint (eCM), a Dublin-based society that has pioneered a novel applied scientific discipline that enables primal banks to number digital fiat currency, called eCurrency. eCurrency is dissimilar from the diverse forms of private sector digital value available today because it is issued past times a primal banking company as well as has the same legal as well as monetary condition equally notes as well as coins.
eCurrency is to a greater extent than than a ledger. It is an end-to-end solution that combines hardware, software, as well as cryptographic safety protocols to enable a country's primal banking company to non alone number digital fiat currency, but also fully care its operation, including the mightiness to monitor its movement through payments systems inwards near-real time.
Omidyar Network made the investment through the firm's Financial Inclusion initiative, which focuses on supporting innovative technologies to massively increase attain as well as scale carry on of affordable, convenient, as well as flexible fiscal services to consumers as well as pocket-size businesses globally. Funds raised during the Series C round, which Omidyar Network led, volition brand eCM's ground-breaking applied scientific discipline available to primal banks around the world, enabling them to evolve their national currencies efficiently as well as securely as well as to top away on measurement amongst today's digital world.
"Paper-based money is becoming an antiquated tool inwards an increasingly digital economy. Those who rely heavily on cash to behavior their fiscal lives are oft locked out of the formal fiscal scheme as well as the opportunities it presents," said Tilman Ehrbeck, partner at Omidyar Network. "eCurrency tin give notice assist accelerate fiscal inclusion past times turning today's digital value systems into sovereign-backed national currencies, increasing trust, as well as addressing key issues currently hindering the adoption of digital value systems, such equally interoperability."
eCurrency also delivers major savings to governments as well as taxpayers: The toll of minting as well as distributing eCurrency is around one-tenth of the toll of printing, securing, distributing, as well as eventually destroying paper-based money. The solution works seamlessly across all existing payments systems as well as electrical flow infrastructures, as well as it tin give notice move customized to comply amongst nation-specific safety as well as regulatory frameworks. It was developed based on feedback through straight engagement amongst thirty primal banks as well as has been successfully piloted inwards multiple countries.
"As technological advancements select connected people globally, the payments manufacture has provided them amongst better, digital ways to transact. If nosotros mean value of digital transaction platforms equally a scheme of pipes, as well as hence mobile has added the final miles of these pipes, as well as the meshwork is reaching people at the farthest corners of the world. But equally this digital revolution has been taking place, the issuance of currency has essentially remained the same," said Jonathan Dharmapalan, founder as well as CEO of eCM. "eCurrency volition enable primal banks to number a single, prophylactic digital currency musical instrument running through these pipes, making the entire scheme to a greater extent than secure, transparent, efficient, and, to a greater extent than importantly, trustworthy, equally it is similar a shot backed past times the country's primal bank."
How it works
Once the applied scientific discipline is acquired past times a country's primal bank, eCurrency tin give notice alone move minted past times the primal banking company inwards an offline process. Each unit of measurement of eCurrency consists of a "cryptocomplex": Influenza A virus subtype H5N1 self-contained safety musical instrument made upwardly of many layers of safety applied scientific discipline uniquely outpouring together to ensure eCurrency cannot move counterfeited or compromised. After deployment, eCurrency's safety features tin give notice move updated real-time, inwards gild to remain ahead of counterfeiting threats.
Once each unit of measurement of eCurrency has been created past times the primal bank, it is transported inwards digital cast inside a secure storage device to payments systems, such equally banks as well as other fiscal providers, using the same existing delivery mechanisms available today for notes as well as coins. Those institutions as well as hence charge eCurrency into their systems, making it available publicly for transacting.
Because each unit of measurement of eCurrency is equipped amongst a self-aware, unique identifier, the primal banking company tin give notice monitor the movement of eCurrency through payments systems inwards most real-time as well as continuously add together upwardly the money furnish to ensure that the amount issued is the same equally the amount inwards circulation at all times.
Economic benefits
There is a large trunk of evidence indicating that shifting to digital transactions boosts economical growth. Influenza A virus subtype H5N1 Moody's study shows that electronic payments added US$983 billion or 0.17 percent points annually to economical growth across 51 countries that accounted accounted for 93 percent of global gross domestic product betwixt 2008 as well as 2012. The study works life this was the equivalent of creating 1.2 1 chiliad one thousand additional jobs. During that period, the study estimates electronic payments added 0.8 percent to gross domestic product inwards developing economies as well as 0.3 percent to gross domestic product inwards developed economies.i
Influenza A virus subtype H5N1 query study past times Citigroup as well as Imperial College estimates that 10 percent growth inwards the adoption of digital money across xc countries volition convey 220 1 chiliad one thousand to a greater extent than people into the formal fiscal sector, add together US$1 trillion of novel flows inwards the formal economy, as well as atomic number 82 to US$150 billion of additional consumer spending as well as US$100 billion to a greater extent than inwards taxation collections.ii eCurrency tin give notice assist accelerate the migration from paper-based transactions to digital transactions, solving issues currently hampering its growth, such equally payments systems interoperability.
About Omidyar Network
Omidyar Network is a philanthropic investment theater dedicated to harnessing the mightiness of markets to exercise chance for people to improve their lives. Established inwards 2004 past times eBay founder Pierre Omidyar as well as his married adult woman Pam, the organisation invests inwards as well as helps scale innovative organizations to catalyze economical as well as social change. Omidyar Network has committed to a greater extent than than
US$879 million to for-profit companies as well as nonprofit organizations that foster economical advancement as well as encourage private participation across multiple initiatives, including Consumer Internet & Mobile, Education, Financial Inclusion, Governance & Citizen Engagement, as well as Property Rights. To larn more, take in
www.omidyar.com, as well as follow on Twitter @omidyarnetwork #PositiveReturns.
Issuing Organization:Omidyar Network
Source PRNewsWire