The global financial crisis of 2007, better known as the great recession, exposed major weaknesses within the global monetary system. The chaotic atmosphere gave rise to blockchain technology, which in turn, has birthed cryptocurrencies. During the same period, a drastic reduction took place in the total values of remittances sent to locations within the Latin American and Caribbean region, where individuals and families are highly dependent on financial support. The values of these remittances were further reduced because of the high fees charged by traditional banks.
In Latin America and the Caribbean the total amount of remittances amounts to 7.5% of the GDPs of these nations. This is compounded by the fact that payments sent across international borders through the traditional banks are still very complex, slow-moving and expensive.
The average amount transmitted to each dependant through the traditional bank or remittance agency is $222 at regular intervals 13 times a year.2 At the height of the global recession, remittance fees in the LAC region climbed to nearly 8.75% of the GDP. The total remittances sent to the LAC region in 2016 totaled just over 69.4 billion, which represents an average percentage remittance of slightly above 6%.4 These totals plus the cost of fund transfers are staggering. But, if Laccoin had been the issuer, it would have put back 4.6 billion into the hands of the needy people of the LAC region.
What Is LACCoin
Laccoin is an Ethereum-backed cryptocurrency that uses a mobile wallet. Individual users will have the option of exchanging their cryptocurrencies and LAC tokens with one another through their mobile wallet or of spending their LAC tokens or other cryptocurrencies through their Laccoin prepaid debit card. The scope and range of Laccoin will make it the first cryptocurrency or token to bring Latin America and the Caribbean under a single monetary jurisdiction.
Laccoin wallet will be available for download via IOS or the Android marketplace. With the use of the LAC card, individuals and businesses will be able to operate in the new Latin American and Caribbean digital economy from their mobile device. However, the full benefits of Laccoin will only be apparent once a person can use the token in the same way that he uses other fiat currencies or fiat back debit cards for everyday payments.
Our intention is not to go head-to-head with the traditional banking services but to ease the burdens of individuals and businesses that do not have easy access to traditional banking services in the LAC region.
LACCOIN (LAC) is an Ethereum backed cryptocurrency that enables the banked, unbanked and underbanked individuals who are in Latin America and Caribbean region to send money, invest and send micro-loans to each other with their mobile wallet or web app. Combined with their LAC debit card and access to the LAC Index Fund individuals can spend their LAC tokens, invest or use their P2P loans that connect with their LAC wallets where every VISA or MasterCard is accepted.
Our vision is to create a viable ecosystem for monetary transactions which will be a viable alternative to the existing banking system.
Laccoin has many uses but will primarily be used to focus on the $70 Billion remittance market for covering the LAC region. It addresses the following key problems faced by the poorer sector:
A. Problem(s): Costly remittance systems
o Solutions: Laccoin is an easy way to send international remittances to other Laccoin wallet holders.
B. Problem(s): Reaching the Underbanked
o Solution(s):Access to current banking services and the new cryptocurrency card payments system through the use of mobile devices which will result in a more significant penetration rate than banks.
C. Problem(s): International and domestic aid to LAC region
o Solution(s): The speed of aid is essential in critical situations. With widespread mobile penetration, aid can be received efficiently.
D. Problem(s): Inability to invest or spend within the LAC region
o Solution(s): To enable and empower citizens in the area to become a part of the new digital economy through the use of LAC tokens within the LAC region.
E. Problem(s): Inability to access loans through traditional financing mechanisms to start business projects or personal projects.
o Solution(s): To enable and empower citizens in the region to access micro-finance \ through nontraditional means by creating a credit score through their Laccoin wallet.
F. Problem(s): Unbanked and underbanked do not have access to complex financial vehicles to help build wealth.
o Solution(s): A Union Wealth Fund will be open solely to LAC token holders. The Index Fund will hold highly liquid cryptocurrencies that are managed to ensure a robust portfolio that meets the needs of LAC ecosystem.