b4H Community Prosperity Coins
This is it! This is where the Blockchain technology proves its most tangible value.
In a continuous search for ways in which we can create prosperity for developing Communities around the world, we found the use case where Blockchain technology can address problems related to instability of local economies, financial exclusion, vulnerability to a crisis (pandemics) and lack of liquidity.
It all started when we invited Will Ruddick, founder of Grassroots Economics, to a b4H Fireside Chat to explain how the sophisticated DeFi technology powered by Blockchain is allowing Communities in Kenya improve their livelihoods.
Communities are using a credit system with inbuilt incentive mechanisms that can reward contributors in the network.
We are going to fast-forward and skip all the technical details of this system, which consists of a Bonding Curve implemented in a Smart Contract. Yes, we know, we can explain all that separately, but for now, let’s focus on how we can implement such concept and what benefits it brings to remote communities in Kenya where it has been fully adopted by 8 different Communities.
In Kenya, it has been a laborious effort by the Grassroots Economics team; thanks to them, eight Kenyan Communities now benefit from higher liquidity that brings for them a 38% higher purchasing power. Their community currency stays longer in the local economy and while offering a higher purchasing power to its members. Our favorite Case showed that kids were more likely to go to school and be fed at school while the teachers finally received compensation for their work.
Community currencies have about 18,000 active users in Kenya.
Considering the current pandemic crisis, we wondered how things would go for communities that had implemented their own currency. To our positive surprise, despite challenging times, the initiative has seen the most extensive usage of Community currency they have ever, reaching near 7k USD traded daily among thousands of people living below the poverty line in rural villages. The CIC dashboard showing the activity in the network proved a resilient community exchange despite the Corona Virus pandemic.
Are you as excited as we are to help implement this at scale worldwide?
Blockchain for Humanity is now fully engaged and actively working towards defining simple models and systems to implement at scale. In this latest post, Currency 123 (back, guarantee, open), Will Ruddick describes all necessary steps to implement the Community Inclusion Currency (CIC). In the meantime, we are documenting all the requirements to share with anyone interested to carry a pilot.
Part of the work required to successfully implement such an initiative is creating reserves from collateralize assets, training/educating members to better manage their local economy, and create a healthy network that works in harmony to maintain the value of their Community Currency. Lastly, we must ensure the technical tools and governance systems are in place to serve the purpose and create TRUST among the members.
B4H is seeking support from the #Coalitions4GOOD to conduct a pilot in Latin America, we strongly believe in this approach to build prosperity for Communities around the world. Join our Virtual Gathering this Thursday to learn more details.
Here is WHY we supporting Community Prosperity Coins?
- Creates the means to stimulate rural economies that can lead to direct positive impact for the benefit of the entire Community.
- Humanitarian Organizations, NGOs (such as The Red Cross), can donate directly to the Community’s Currency Reserve instead of one-off funding aid, allowing people more stable purchasing power and a better quality of life.
- It is an opportunity to prove that the latest emerging technology advances and a purpose-driven mindset can materialize the benefits we know Blockchain technology can deliver.
Join us in our next Virtual Gathering, where Will Ruddick will share the steps to implement this concept elsewhere and scale it worldwide.
We would like to build a real #Coalitions4GOOD to be part of the implementation of Community Prosperity Coins in Latin America.
About Blockchain for Humanity
Blockchain for Humanity (b4H) is a not-for-profit foundation with the mission to drive the adoption of emerging technologies that offer a positive social impact. b4H gives an annual award that recognizes social entrepreneurs working in the intersection between social innovation and purpose-driven development. 100+ applications and 12 awards issued since it launched in 2017. b4H is a relentless advocate of collaboration, through the #Coalition4GOOD grassroots movement, a collective force4good and a pro-sociality mindset that prevails in its purpose-driven business framework. b4H goal is to drive, support, or lead initiatives that can help achieve the Sustainable Development Goals Agenda for 2030.
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