Here is our pitch — 3 minutes and 40 seconds — from the Paris Blockchain Week. Enjoy!
Here is the transcript:
So, we are in the lending business, in the credit business, in the business of credit-money.
Let me start with credit – the credit as such is 5’000 years old. The first artifacts of credit are 5’000 years old. Let’s look at today – 85% of the economy runs on credit. To produce 1 USD of GDP we need 5 USD credit. Most people know it.
But now let’s look – what’s behind the credit – behind the credit is the credit-money. So, credit-money versus base-money. Base-money is the money that you have in your wallet – the coins, the notes – but, it’s 3% of the money. The 97% of the money is the credit-money, the commercial banking money, created by the commercial banks in the lending process.
Let’s think about history now. Commercial banks have been there for 350 years, only. Credit-money has been there for 5’000 years. How did it work the first 4’700 years?
It’s very easy? Peer-to-peer. It was a peer-to-peer credit-money. So, what is credit-money? It’s created in the lending transactions, dissolved in the lending transactions, is transferable, is protected.
We are here on the blockchain conference. Where is the credit-money, where is 97% what the economy needs in blockchain? Is it Bitcoin – no; is in Ether – no; is it Litecoin – no; It’s missing. We are speaking here about the 3%, but we in SmartCredit.io are speaking of 97%.
What we are doing – we are a marketplace – there are borrowers and lenders. They meet in the marketplace. The lenders lend out their money, the crypto and they receive the freshly minted credit-coins, which represent the underlying loans. The lender can use this credit-money to pay the next parties, which can pay with this the next party and so on.
These coins are value protected. There is a loss provisions mechanism. There is a collateral mechanism. These coins are transferable. And the guys, who own these coins at the end, they will receive interest pro-rata.
Let’s think again what we are doing – the lender lends out his money, but he receives the credit-coins. He can use these credit-coins to pay the next parties, who can pay the next parties and so on. We are creating credit-money.
The lending process – we are dissolving credit money at the end, we replace it with the underlying plus the interest. That’s what we are doing – we focus on the 97% and not on the 3%.
So, where are we – we have a pilot, it’s running, everyone who is interested, please look on the website. You can register, you can use the system. There are instructions on how to use the system. We aim to launch in the middle of summer in Europe and then, of course, to roll out in the next locations.
And a little background of the team, of founders – me and my twin brother – we have been long in the banking, in swiss banking, we worked for Credit Suisse as Vice Presidents for 10+ years, we know the banking inside out, we know the credit system inside out. And we started 2008 with monetary systems, Satoshi started …
So, that’s our aim – to create credit-money.