Freedium: Stable Cryptocurrency Coin Backed by Commodities?
Freedium aims to create a stable currency using commodities. Find out how it works today in our review.
What Is Freedium?
Freedium, found online at Freedium.io, is a stablecoin backed by the value of commodities. The goal is to foster financial inclusion in emerging and developing economies by creating the world’s first commodities-backed stable currency available for use worldwide.
As of April 2018, Freedium is in active development. The development team has not yet published a whitepaper online, although the website features basic details of the project and its goals for the future.
Let’s take a closer look at how Freedium works and what problems it seeks to solve.
What Problems Does Freedium Seek To Solve?
Freedium isn’t your ordinary stablecoin. The team isn’t creating a stablecoin just to cater to the cryptocurrency industry. Instead, the team is creating a stable currency to tackle challenges in the emerging and developing world. Some of the problems identified in the Freedium whitepaper include:
Scarcity Of Foreign Exchange
“De-risking” excludes thousands of businesses and millions of people from mainstream financial services, making it difficult for people in certain countries to access modern banking systems.
Weak And Volatile Currencies
Developing economies are plagued by volatile currency prices. Even more developed countries like Brazil and Russia face problems related to currency volatility. We’ve even seen it happen in the UK, where Brexit led to a sudden decline in the value of the GBP. The Freedium website mentions that in 2016, Nigeria’s currency dropped 37% in value, Angola’s currency dropped 20%, Zambia’s dropped 40%, Brazil’s dropped 38%, and Russia’s dropped 20%. A stable currency could be a valuable alternative.
Weak Banking Sector
2 billion people, or 40% of the world’s adults, are unbanked or underbanked, which means they cannot access modern banking services for whatever reason. Some people cannot access banks because they lack any type of modern ID. Others are hundreds of miles away from any bank or financial office. Over 80% of adults in Africa are unbanked.
Inefficient Commodity Markets
Commodities owners have limited access to liquidity. They sell their products below international market prices due to friction in the marketplace and difficulty accessing foreign markets.
How Does Freedium Work?
Obviously, the problems listed above are major, serious problems related to global trade and international economics. How does Freedium plan to solve these massive issues?
The primary goal of Freedium is to create a commodities-backed stable currency that provides financing to commodity owners while being stable and usable around the world.
Core functions of Freedium include:
Strong And Stable Currency
Freedium is fully backed by the value of its underlying commodities. The team claims the value of Freedium will never sway more than plus or minus 5% compared to the underlying dollar value of its commodities.
Freedium is a censorship-resistant currency that lies outside the power of any centralized authority.
Freedium is accessible on any device. Freedium plans to partner with banks and exchanges worldwide to ensure it’s easy for customers to use anywhere in the world.
Financing For Commodity Markets
Commodity owners can access instant financing for their commodities, unlocking a $2.5 trillion market according to Freedium.
The end result of all of these functions is the creation of a sustainable financial inclusion ecosystem, with mobile banking and remittance services, smart trade microfinancing, and insurance products available.
Who’s Behind Freedium?
Freedium was created by founder and chairman Keba Keinde, who is also the chairman and CEO at Millennium Finance Corporation in Dubai. He’s the former Managing Director, Head of Middle East & Africa at BNP Paribas in Paris and Senior Investment Officer at the World Bank / IFC in Washington. Keinde was also a presidential candidate in Senegal in 2012.
Other listed team members include Aron Dutta (Chief Strategy Officer), the former Global Head of Blockchain at IBM and Managing Director at Cisco Systems, Victor Kazdoba (Chief Operating Officer), an Executive Director at JP Morgan Chase, and Aqil Ahmed (Co-Founder), a partner and board member at a leading investment bank called MFC in Dubai.
The company announced itself to the internet via press release on April 16, 2018. Freedium is based in Dubai in the Dubai Multi Commodities Centre, or DMCC.
Freedium is a project that aims to back the value of its cryptocurrency using commodities. The project will allow users to access modern banking services over the Freedium platform. Users will be able to access a stable currency while participating in an inclusive financial ecosystem. The platform is particularly targeted at those in developing parts of the world – including countries with unstable or volatile currencies.
As of April 2018, there’s limited information about Freedium available online. A whitepaper has not yet been published. However, we expect more information to appear online over the coming months.
To learn more about Freedium and its goals for the future, visit online at Freedium.io.