Imagine for a moment that you had never used a bank account.
That all of your expenses – bit and small – had to be paid only with cash.
When emergency strikes or you need to make a large purchase like buying a car, house or business, you would need to save up all of the money.
After all no bank account means that you have absolutely no credit history.
To many people in developed countries it may sound like a highly unlikely scenario.
But in fact it’s exactly how 2.5 billion people live today.
Being “Unbanked” is incredibly common. In Africa it is estimated that up to 80% of people have never have had a bank account.
Not only is this problem of people being unbanked extremely trying for those it effects, it is also detrimental to the overall economy.
Having to save capital to make large purchases is highly inefficient. Imagine a local neighbourhood where people need basic businesses like a grocery, hardware store, auto mechanic or a clinic.
People in that community are unable to setup those businesses because they don’t have the capital to get started.
The problem is typically not one of sheer poverty. Most of those effected are either blue or white collar workers. They have employment earning between $200 – $500 per year.
The issue is a lack of credit history.
MicroMoney is a new blockchain startup which has a solution to these problems.
The technology is already being used every single day with over 95,000 people already registered on the platform.
Applying for credit is super simple. Using a smartphone app applicants can apply for a loan in a few simple steps. The process only takes about fifteen seconds to be approved.
Most importantly applicants don’t need to have any credit history.
MicroMoney instead uses an extremely rich source of data – the applicants smartphone.
Even in countries where people don’t have bank accounts, most have smartphones.
Leveraging this fact MicroMoney uses ten thousand different parameters and then an AI Neural Network to quickly evaluate the credit worthiness of the applicant.
Token symbol: AMM
Total token supply: 60,000,000
Planned raise: $15,000,000
Hardcap for ICO: $30,000,000
Token type: ERC20
Initial price: 1AMM = 1USD
Token sale link: https://www.micromoney.io/
How The AMM Token Works With MicroMoney
The AMM Token is an essential part of the MicroMoney network. Firstly, people who want to borrow money can place their AMM tokens as collateral. This will help to reduce the interest rates that they need to pay. If they default on the loan then the AMM tokens are returned to the network. This helps to reduce the risk of defaults on loans.
People who repay their loans on time will be rewarded with AMM tokens. What’s more people in the network can choose to vouch for other borrowers. If that person they vouched for repays the loan, then both the voucher and the borrower are rewarded with AMM tokens.
This creates a positive cycle because people who repay their loans on time will earn more AMM tokens. In turn they will be able to use these AMM tokens as collateral and reduce the interest rate they pay. Over time good borrowers are rewarded for paying on time.
MicroMoney has set themselves some pretty big goals for the platform.
By 2020 they want to have raised the entire capitalisation of the company to $1 billion.
That is certainly ambitious. But, when you consider the number of people who are currently unbanked it doesn’t see unreasonable.
Crypto investor who want to do good and do well at the same time may want to join them for the journey.