Bancor, a self-described “decentralized liquidity network,” has recently announced a new community currency initiative designed to help alleviate poverty in Kenya. The new service will facilitate the creation of these community currencies as an alternative financial system. The hope of this service is to boost local commerce and peer-to-peer collaboration while establishing a new type of currency that can be used to purchase goods and services within a specific geographical region.
Community currencies have existed in the past in a physical nature, but Bancor is bringing its cryptocurrency expertise to the equation by giving Kenyan communities tokens to use on a blockchain. According to Bancor cofounder Galia Benartzi, cryptocurrencies have generated $400 billion for new currencies" and we believe the same mechanics can be applied to help communities create wealth on a local level."
Image Credit: Bancor