The World Bank, the IMF and other international banking entities use the power of lending to manipulate and control the actions of whole nations, even dictating to them what programs the governments should have, and which they should not. Their power to control communities and nations through banking has been well documented by numerous sources, including the Corbett Report.
The article we’ve excerpted from fastcompany.com addresses the ways in which a Blockchain financial system could empower communities and individuals in areas of the world where access to capital, to banking is either not available or is simply out of reach.
Well, I want to go beyond the power of the blockchain to offer financing options to people who otherwise wouldn’t have it, to how the blockchain can fundamentally undermine the power of these international banking entities (with the World Bank and the IMF being the biggest offenders) to control whole nations through lending.
Instead of going to the World Bank or the IMF, with their onerous interest rates, their terms of loan repayment that keep you indebted to them for decades, if not, technically, forever, communities can turn to blockchain financing as a way to get around these entities that are designed in the first place to use their capital power to socially engineer a world that continues to favor the owners and managers of these international banking entities.
|Can The World’s Underbanked Leapfrog On To A New Blockchain Financial System?|
…..That’s not the case in the poorest parts of Africa, Latin America, and South Asia, where people lack basic services in finance, energy, government, and much else, potentially opening the way for new technologies. The ability of decentralized ledgers to offer better record-keeping and personal identity management (to name two areas) may be true game-changers, according to development experts. Indeed, the promise of blockchain was in full evidence at the Davos World Economic Forum recently, according to multiple reports from that shindig.
Moeda is one small but representative example of how blockchains can enable development. It is a microfinance platform that links investors in relatively developed markets (for now, mostly in China) with cooperative businesses in rural Brazil.
Taynaah Reis, who leads the startup, has spent her whole life around Brazil’s large community of cooperative farms and agricultural businesses. Through a governmental program called PRONAF, her father helped find credit for family farms as she was growing up in the late 1990s and 2000s. Now 29 years old, she says cooperatives currently have few options to borrow money. The best bank rates available are in the 120% range but could go higher if cooperatives have poor credit histories and have to resort to credit cards. Government grants are also on offer. But Reis says they tend to be ring-fenced with bureaucratic hassle and protocol.
“I grew up with the cooperative system and I saw how difficult it was to access finance,” Reis tells Fast Company. “My country is known for its cooperatives and I see [Moeda] as a way to fight for my country and contribute to something my father helped start.”
|Read More at fastcompany.com|