Per a press release shared with Cointelegraph on Dec. 12, the partnership between the two entities aims to develop and launch a microfinance ecosystem based on Algorand’s blockchain technology in a bid to boost the financial inclusion of the urban working poor in the region. Within the initiative, the parties will also introduce a dedicated token dubbed the Asia Reserve Currency Coin (ARCC).
Not to provide free spending money
ARCC is designed to provide debt-free capital to the urban working poor in Southeast Asia, wherein over 300 million adults do not have a bank account or lack proper access to credit, investment and insurance facilities. People will purportedly be able to earn free ARCC by reporting corruption and receive investments for their businesses in the form of ARCC.
Individuals will also be able to obtain ARCC as a reward through gamified activities. By aggregating data directly from people, the organizations hope to target both corruption and the problem of the unbanked in the region, the IBMR team told Cointelegraph, adding:
“But the main focus of our site is not to provide free spending money, but for users to amass debt-free capital over a 3 year vesting period for entrepreneurial investment.”
Real-world use case
Speaking about how the initiative will actually help people get and cover insurance, IBMR explained that the dedicated ARCC.one will operate as an asset management platform based on the holdings on the users, enabling them to use their own ARCC within the platform to take advantage of services such as credit, investment and insurance facilities.
What makes it possible is the ARCC Reserve, according to IBMR, who establishes relations with microfinance service providers to present financial products to the users that are already guaranteed…