The global financial crisis of 2007, better known as the great recession, exposed major weaknesses within the global monetary system. The chaotic atmosphere gave rise to blockchain technology, which in turn, has birthed cryptocurrencies. During the same period, a drastic reduction took place in the total values of remittances sent to locations within the Latin American and Caribbean region, where individuals and families are highly dependent on financial support. The values of these remittances were further reduced because of the high fees charged by traditional banks.
In Latin America and the Caribbean the total amount of remittances amounts to 7.5% of the GDPs of these nations. This is compounded by the fact that payments sent across international borders through the traditional banks are still very complex, slow-moving and expensive.
The average amount transmitted to each dependant through the traditional bank or remittance agency is $222 at regular intervals 13 times a year. At the height of the global recession, remittance fees in the LAC region climbed to nearly 8.75%3 of the GDP. The total remittances sent to the LAC region in 2016 totaled just over 69.4 billion, which represents an average percentage remittance of slightly above 6%. These totals plus the cost of fund transfers are staggering. But, if Laccoin had been the issuer, it would have put back 4.6 billion into the hands of the people of the LAC region.
Figure 1: Global Findex Database 2014 Measuring Financial Inclusion around the World
NEW LAC ECONOMY
Even though conventional banks in the LAC region have done an excellent job of trying to
include everyone in their respective economies, there still remains a massive inclusion gap. Banks in the LAC region have a penetration percentage of only 51% as seen in Figure 1 beside.
By contrast, a considerable number of individuals within the region have access to mobile devices. Looking at unique subscribers, that is, users who subscribe to mobile services at the end of a period, the unique subscriber penetration rate for mobiles stands at 65%, corresponding to a total of 414.4 million individuals. By 2020 the penetration rate will rise to 78%, a total of 524 million individuals. In addition, 70% of the population would have adapted to smartphones by 2020.
It shows that people are looking for more convenient and better ways to send money to the LAC region. A recent survey showed that 42% of respondents said that they were looking for ways to send cash through the internet. By and large, cryptocurrencies have outpaced the current methods of transmitting and receiving money as well as paying for items.
Another advantage of cryptocurrency over existing fiat currencies is the speed of transactions. Sending money to a relative in another country through the existing banking system takes considerable time and money. Transactions sent through Western Union, MoneyGram, RIA, Xoom, Dolex, Sigue, Intermex, Barri, Viamericas, and Wells Fargo — handle 90% of the 14 million transfers to the LAC region. While these transactions can take days, they can be
executed in a matter of minutes using Laccoin cryptocurrencies.
OUR VISION
We believe that, with the use of the Laccoin ecosystem, we can provide people within the LAC region with easy access to funds. Many of these people would normally be unreached within by the present system. Blockchain technology, which is it is cheaper, faster and safer, is an excellent way to reach out to and include everyone within the region to participate whether within the traditional economy or the new digital economy of the future.
Our vision is to create a viable ecosystem for monetary transactions which will be a viable alternative to the existing banking system.
Laccoin has many uses but will primarily be used to focus on the $70 Billion remittance market for covering the LAC region. It addresses the following key problems faced by the poorer sector:
A. Costly remittance systems
o Solutions: Laccoin is an easy way to send international remittances to other
Laccoin wallet holders.
B. Reaching the Underbanked
o Solutions: Access to current banking services and the new cryptocurrency card payments system through the use of mobile devices which will have result in a more significant penetration rate than banks.
C.International and domestic aid to LAC region
o Solution: The speed of aid is essential in critical situations. With widespread mobile penetration, aid can be received efficiently.
D. Inability to invest or spend money within the LAC region
o Solution: To enable and empower citizens in the area to become a part of the new digital economy through the use of LAC tokens within the LAC region.
E. Inability to access loans through traditional financing mechanisms to start business projects or personal projects.
o Solution: To enable and empower citizens in the region to access microfinance \ through nontraditional means by creating a credit score through their Laccoin wallet.
F. Unbanked and underbanked do not have access to complex financial vehicles to help build wealth.
o Solution: The Union of Wealth Fund will be open solely to LAC token holders. The Union of Wealth Fund will hold highly liquid cryptocurrencies that are managed to ensure a robust portfolio that meets the needs of LAC ecosystem.
If you have any further questions or just want to get in touch with us, please don’t hesitate to email us at tokensupport@laccoin.io or find more information here.
✅ — Website: http://laccoin.io/
✅ — Telegram Official Community: https://t.me/LaccoinEnglish
✅ — Twitter: https://twitter.com/LACCOIN
✅ — Whitepaper: https://app.box.com/s/dsdgysn33e7qntd91sxtm0yvpggpgitv
✅ — One Pager English: https://app.box.com/s/ahi78m41cphgcywrayk8d1qcpha258yz
Sources:
- The World Bank. Measuring Financial Inclusion Around the World. http://documents.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/15/090224b082dca3aa/1_0/Rendered/PDF/The0Global0Fin0ion0around0the0world.pdf