Blockchain as an enabler of inclusive finance

Ask most business leaders to explain blockchain, and depending on their background and personal involvement in this revolutionary technology, you’ll likely get a wide range of explanations, from simple distributed ledger explanations to overly complex analytics. Sho. A minimum degree equivalent to a Ph.D. is required. Understanding with astrophysics. Adding code to a conversation instantly increases the level of skepticism in many people. Negative press coverage and allegations of outright fraud do not reflect the highest standards of transparency and trustworthiness in the industry. “For those of us who have been dedicated to this industry, he has two choices,” Mimo His Capital’s CEO, Claude His Egienta (properly pronounced egg-u-inta), said in a recent conversation. Told. “We can abandon ship or we can stay on board, and through inclusive finance we can make it better and stronger and empower our diverse communities,” Egienta added. .

Many people at the heart of the cryptocurrency industry are trying to change the perception of all cryptocurrencies as a single industry. For example, the disgraced FTX was a black-boxed, centralized exchange with many loose regulations that encouraged misleading, half-truths, and outright fraud. The industry hopes to democratize financial literacy through decentralization and give users more control over the technology. In an environment built for communal trust, the core design of the technology makes creative accounting and fraud more likely to be detected. That could mean that the industry becomes more difficult to use for the average person, less accessible to many, and temporarily forced into the perception of many as a niche provider.

“Some things take time because you have to have a solid foundation in the first row of software,” Egienta added. “Over time, we can build layers to provide users with easier access, different restrictions, more knowledge, more adoption and decentralized trust,” said the financial industry prominent. experts suggested. Mr. Egienta, who has been involved in managing portfolios and leading investment teams for more than 20 years, will be responsible for overseeing MimoHis Capital’s investment strategy. Previously as a co-founder of two blockchain companies, Telcoin and Kabotip, he has been instrumental in leveraging technology for financial inclusion.

Indeed, social impact seems like a long way to go for this cutting-edge and sometimes proprietary technology. That is, until I learned more about this soft-spoken computer scientist who specializes in distributed systems. Eguienta, who is of Caribbean heritage, grew up with his mother who was a student at heart and has spent most of his career in human resources. He read her books to learn about relationships and organizational dynamics, and when he wasn’t playing video games (his first passion), he devoured her instructional books. The transformation he aims to improve financial literacy and bridge the economic gap between the haves and have-nots through his blockchain software ultimately reflects his own evolution.

As our conversation reveals later when discussing Claude’s background, there is a not-so-obvious correlation between gaming and cryptocurrencies. “Game leveling involves controlling actions and currency. Finance creates economic incentives for users to spend tokens or interest rates, allowing or restricting certain actions, much closer to game creation.” We will be able to plan our economic ecosystem,” Egienta added.

At Mimo, Claude and his team seek to provide crypto users with access to real assets. His first venture, his Kabotip, was created before crypto software was an industry. He was very focused on helping content creators monetize their content. Think of the intersection of Reddit and Instagram. There, all the likes, funds were transferred from the mobile phone by running a secure blockchain (often called a miner), and the user received the payment. Through donations/tips, his active users will soon increase to 30,000. His Kabotip as a startup was a great spark of creativity, but it didn’t have a scalable business model and the product-market fit seemed confusing.

His successor business, Telcoin, was built with a US-based partner with experience in telecom fraud detection, started using machine learning (ML) as the infrastructure for transferring money from users, and started using machine learning (ML) as an infrastructure for transferring money from users. We have achieved a close relationship. The two partners studied the movement of funds in developing markets such as Kenya and the Philippines and created a network to transfer funds without border restrictions. Imagine sending money like a text message to a phone number. Using cryptocurrencies as a backend, the money transfer business has powered software that reduces implementation friction and dramatically increases regulatory expertise. As the business evolved to operationalize more relationships with major carriers and governments than technology, Claude asked a partner to lead him as CEO, continuing the entity to this day.

Excited to work on the next frontier, Egienta said he wanted European users to have access to stablecoins (virtual currencies designed to have relatively stable prices, usually by being pegged to a commodity or currency). We built Mimo as a provider of a new protocol for . In this new ecosystem, a reserve asset is required to issue the main digital asset. The more assets you own, the less realistic your holding costs become. Therefore, Mimo buys real-world productive assets such as stocks, debt, and real estate and publishes their digital representation on the blockchain.

A simple example would be home ownership. Mimo can buy the house and issue a token that is a digital representation of ownership of the home. If the house is rented, the tenant pays the rent every month, and Mimo can give monthly rental income to the digital token holder. A more realistic and aggressive scenario is Treasury bills (T-bills), which are short-term debt securities backed by the U.S. Treasury with maturities of one year or less. At a constant rate, $100 Treasury bills are purchased at a discount and sold at a later date at face value to form an interest rate. Mimo buys T-Bills, sells digital representations into digital T-Bills in cryptocurrencies represented by US dollars, creates the right combination of interest rates and risk profiles, and sells them to customers.

Now imagine educating underprivileged or unbanked people about cryptocurrencies as a tool to understand how the financial system works. That’s because Egienta and the Mimo team build software to speed the movement of funds and reduce the friction of holding cash in an open, transparent, secure, and publicly traceable manner. It’s no longer difficult to imagine. A recorded transaction is public information, including how the transaction occurred, when and where it occurred, and the source code of the software and platform on which it occurred.

This is a true innovation as a solution to closing the economic gap and exemplifies the efforts of a few good people to make an impact on society. The challenges faced by blockchain startups require unique strategies to overcome obstacles, misconceptions, and mistrust of the cryptocurrency ecosystem. Claude Eggienta is one such guiding light.

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