Our Mission and How We Will Achieve them.
Our mission is to unveil practical steps to cryptocurrency mass adoption in Nigeria. We want to change the way people interact with Fiat by providing a convenient and Stable — alternative cryptocurrency backed by the Nigerian Naira that will do everything you can do with your fiat. Among several other products to be unveiled, NairaCoin is a pioneer project of Flourish Blockchain. A stable coin to the Nigerian Naira for the sole purpose of:
1. Promoting a cashless society,
2. Helping merchants to save costs on transaction fees and
3. Providing easy way for diasporas and businesses to send and receive money internationally.
• Diaspora Remittance
• SME Support:
• Exchange liquidity
Ø Why do we target merchants? We target merchants to provide the most flexible form of payment options with minimum costs. The most common and flexible form of payment option for merchants across the country is POS machines. Despite the flexibility offered by POS machines it comes at a huge cost to merchants paying about 1% per transaction on every sale made. Considering that average POS transaction ranges from 46 to 56 transaction per day in a sample of 3000. This is a huge cost for merchants. However, with NairaCoin MPOS software, merchants can accumulate multiple sales payments free of cost into their online wallets and redeem it once daily. That’s only when they’ll be charged withdrawal fee of less than $0.70 or N200 per transaction. Thereby saving huge costs for merchants. without the need to purchase a POS machine from us, all transactions can be carried out on mobile smartphones.
A previous study on Lagos POS adoption survey has also revealed the inconsistency with POS machines as higher percentage of the respondents indicate that the success rate of receiving payments is less than 25% while many merchants are actively using POS machines, many more that are yet to adopt it indicate high transaction cost, and technical malfunctioning among other reasons for not using POS machines. Presently, recorded active POS terminals across the country stands at 170,000 with monthly transaction averaging $416- $480 million dollars and all electronic payment transaction stands at $174billion as at 2016.
Ø Why Remittance? It’s not uncommon for Nigerians in Diaspora to send funds home to cater for their loved ones. Yearly it is estimated that actual remittance industry stands at $21billion and above. Despite the hard labour of our citizens in diaspora to help fuel the Nigerian dream. A substantial amount of these funds is eaten up by transaction fees to large financial corporations without social impact. It is estimated that 16–21% of the total amount is spent on transaction fees. That’s about to change with NairaCoin, we are set to ease the yoke of our brothers abroad. Anyone from any part of the world can now send money home either for business or to their loved ones at their convenience. All they must do is buy NairaCoin on any of the exchanges NairaCoin would be listed and send it directly to the wallet of their loved ones at home who can then redeem NairaCoin on 1:1 basis without transaction costs. Whether you’re redeeming a million Naira or a hundred million naira the withdrawal fee of N200 remains constant.
Ø Why Small and medium Scale Businesses? In every economies small and medium scale enterprises has been a pivotal instrument of economic growth and development either in developed or developing economies. Several studies have confirmed this. Data from the federal offices of statistics in Nigeria affirmed this importance when it reveals that about 97% percent of the entire enterprises in the country are SMEs and they employed an average of 50% of the working population as well as contributing to 50% of the country industrial output. SMEs in Nigeria are not only catalyst of economic growth and development but are also the bedrock of the nation.
So many problems confront SMEs in Nigeria and the most grievous of all is financial exclusion. Many Small businesses are unable to get financial support due to lack of proper documentation and government issued ids. They cannot account for their sales records nor do they have cash registers of inflow and outflow of cash and profit or loss documentation
Small scale businesses are heavily dependent on cash. Situation often arises where a customer brings high denomination of currency to purchase a product, but the retailer is unable to provide the corresponding change to the customer. It is estimated that at least 30% of daily sales are lost in the early hours of the day due to inability of these business to provide change to customers. Business that accepts NairaCoin will never lose a potential sale again or a fraction of their income due to ability to provide change. With more than 20 million estimated SMEs across the country, we believe we can provide the tools to make these businesses scale much effectively. Our future is to provide micro lending to these SMEs depending on transaction volumes and performance over time.
Ø Why Exchange? Exchange users know how risky it can be to hold fiat currencies on an exchange. With the growing number of insolvency events it can be quite dangerous. As mentioned previously, we believe that using NairaCoin exposes exchange users to less counterparty risk than continually holding fiat on exchanges. Exchange operators understand that accepting fiat deposits and withdrawals using legacy financial systems can be complicated, risky, slow, and expensive. Some of these issues include:
● Identifying the right payment providers for your exchange
● Integrating the platform with banks who have no APIs
● Liaising with these banks to coordinate compliance, security, and to build trust
● Prohibitive costs for small value transfers
● 3 to 7 days for international wire transfers to clear
● Poor and unfavorable currency conversion fees
By offering NairaCoin, an exchange can relieve themselves of the above complications and gain additional benefits, such as;
● Accept cryptofiats as deposit/withdrawal/storage method rather than using a legacy bank or payment provider
• Allows users to move fiat in and out of exchange more freely, quickly, cheaply
● Outsource fiat custodial risk to Flourish Blockchain just manage cryptos
● Easily add other Coin pegged fiat currencies as trading pairs to the platform
● Secure customer assets purely through accepted crypto processes
• Conduct audits easier and more securely in a purely crypto environment.
● Anything one can do with Naira as an exchange can be done with NairaCoin