Introducing the Digital Reserve a Public Benefit Corporation

It is my pleasure to announce the establishment of The Digital Reserve a Public Benefit Corporation. A public benefit corporation is a special corporate structure that strives to maximize its profit, while also meeting a public good. As such, The Digital Reserve, P.B.C. is a technology development company with a focus on financially inclusive decentralized systems.

World Bank: World Development Indicators

The Digital Reserve, P.B.C. is designing a series of solutions to start meeting the $2 trillion dollars of unmet financing need in the world and disrupt the $100 Billion dollar a year microfinance industry. The very first project is the creation of a new and unique financial institution that is driven by distributed ledger technology and financed through cryptocurrency.

Until this point, micro-lending has been primarily serviced by two business models.

  • Not for profits providing limited services to those with no access to traditional lending institutions. These models often operate at a loss and requires significant contributions from donors. In addition, they face issues will expanding their services.
  • Traditional for profits that operate solely to make a profit. This is often at the expense of those they should be serving.

As a Public Benefit Corporation, the Digital Reserve will serve a dual purpose. One of those purposes is the creation of profit for its investors and participants. The other purpose is to provide top rated service to disadvantaged and disenfranchised communities with little to no access to traditional financial services.

The current economic paradigm restricts consumers to geographically determinative economies. Blockchain technology and, by extension, cryptocurrencies, enable the creation of voluntary economic systems, or elective economies, governed by a set of rules and protocols that are not limited by geographic location. Elective economies provide the opportunity to build inclusive financial networks and economic models from the ground up.

The goal of the Digital Reserve, P.B.C. is to launch the Digital Reserve Network (“DRN”) as a platform for novel financial products, financial literacy and lending. DRN is a decentralized economic network designed to create a sustainable model for financial inclusion while producing economic gains for network stakeholders. The network will leverage blockchain related technology and econometric algorithms to form an elective network economy that provides users access to capital and control over their credit reputation.

United Nations Sustainable Development Goals

The base implementation is designed to help meet the United Nations Sustainable Development Goals through microlending to communities through an autonomous underwriting process. The DRN will leverage compliance with nascent regulation for crowdsales of network tokens with the support and leadership of Kramer Levin, a top tier law firm in New York. The diligence of the Company to legitimize the work will facilitate access to new capital for executing on the vision of the DRN as a decentralized institution.