Written by Kuido Merits
Global commerce today faces a serious problem. The current global economic system is imperfect for a number of reasons, ranging from its instability to its outdated design, lack of flexibility and rising income inequality.
The current global financial system is a product of the Bretton Woods Conference of the mid-1940s, when the International Monetary Fund and the World Bank were established to tackle post-war economic crises. Since then, although the IMF’s membership has increased from 29 countries to 189, and available resources have increased to US$692 billion, and despite its inadequacies under the current global system, very few substantial reforms have been made to it. There is evidence that the current IMF tenets do not apply to all economies and one size does not fit all. Therefore, there is a problem with global financial institutions.
In addition, bank access for individuals and businesses alike is limited around the world and with increasing regulation and control, it is becoming more and more difficult to open a bank account as a business, especially in the ICO world.
According to the Financial Inclusion database, only 69% of people surveyed in 140 countries across the world reported having an account at a bank or financial institution. For lower income individuals, this number drops to 35%. WeForum has reported that in 2016, there were 200 million small and medium-sized enterprises worldwide without access to formal financial services.
Poor access to financial institutions is a problem and leads to a lack of belief and trust in the existing system. According to WeForum, inequality generated by this problem causes “significant implications for growth and macroeconomic stability, it can concentrate political and decision making power in the hands of a few, lead to a suboptimal use of human resources, cause investment-reducing political and economic instability, and raise crisis risk.”
The same lack of trust can exist with currencies and countries. Venezuela, amidst its worst economic crisis in history, has seen its currency lose more than 99.99% of its value since 2012. This indicates a potential flaw of fiat currencies and loss of market trust in their political masters. As a leftover perk from the era of former President Hugo Chavez, highly subsidized electricity, allowed thousands of Venezuelans to start mining Bitcoin as a means to purchase basic goods that are otherwise restricted by the government. When police started arresting the miners on spurious charges, the miners turned their attention to mining Ether as it was more inconspicuous, later buying other cryptocurrencies.
In 2016, the World Economic Forum highlighted global finance as one of 10 economic challenges that require cooperation from the public and private sectors. It noted that the previous global economic crisis caused a deterioration of public trust in financial institutions, and that the challenge now is “to create a resilient, accessible financial system that people trust,” and which would be able to withstand any future shocks in the market. This is an area that cryptocurrencies can focus on. An improvement in global stability, trust and introducing shared values into retail and consumer decision making is sorely missing from new currency strategy.
With the increase in articles talking about how cryptocurrencies can change this direction, while supporting various sustainable development goals, finally there is an online currency which steps up to the challenge, ReMoneta.
ReMoneta group companies are backed by land which increases system stability, builds trust and security. It gives a real and existing value today, something which fiat currencies cannot achieve. Bringing trust back into the system is critical and when that can be done in a simpler, less harsh regulatory environment there can be positive change. Shared and sustainable values, such as environment and clean energy, animal welfare, human health, and global unity are also incorporated into the currency system. The community is stimulated by rewards for their actions to promote these values, and the increased use of the currency.
Add to this zero transaction costs and the availability micro-payments, and ReMoneta can contribute to a more stable, faster and flexible global system, which can open up in new directions that were not possible before.
There is need for a broader economic debate about how to best integrate the ReMoneta system into global institutions and widen its use. For instance, key points for a public policy debate regarding the use of ReMoneta to enhance global sustainable development are as follows:
- ReMoneta is a global currency that shares and advances global values. We need global, regional and national policy that is based on a shared set of positive sustainable values, implemented equally and fairly across all countries.
- ReMoneta is distributed and managed by the community. The Brundtland Report — likely one of the most important publications regarding sustainable development — was published in 1987 as a response to the rapid deterioration of the human environment and natural resources. It was the first to officially put environmental issues on the political agenda. One of the three key pillars noted in the report was social impact.
- ReMoneta supports global unity. Equality across nations, races and peoples can be enhanced through the use of this decentralized online currency, which is more resistant to economic crisis than standard currencies.
- ReMoneta promotes sustainable environmental and energy practices. This environmental pillar is the core element of fulfilling a complete sustainable development agenda.
- ReMoneta is innovative. Innovation can lead to improvements to legal, institutional, business and regulatory conditions thereby directly contributing to the UN’s 17 global Sustainable Development Goals (SDGs); and
- ReMoneta supports actions generating value for every individual and company in its network, which can be carried out by anyone with a simple internet connection. Wealth generation, reduction of wealth inequality, and job creation are fundamental to the economic pillar of sustainable development.
Mature public policy regarding ReMoneta requires consideration of each of these aspects, but the basis for public policy discussion about online currencies such as ReMoneta and how they may contribute to sustainable development, already exists.
One key document in understanding the potential for ReMoneta to contribute to global sustainable development and build political legitimacy is the Addis Ababa Action Agenda, which emerged from the 2015 International Conference on Financing for Development and was endorsed by most governments around the world. This has been cited elsewhere related to other currencies, however, they do not truely tackle the key issues. The Agenda provided a new global framework for sustainable development, including development funding and other means of implementation, such that all financing flows and policies would be aligned with globally recognized economic, social, and environmental priorities. All of this should be “be underpinned by effective, accountable and inclusive institutions, sound policies and good governance at all levels.”
ReMoneta has the potential to advance the imperatives noted in the Addis Ababa Action Agenda by providing the necessary infrastructure for the development of new businesses, platforms and products on its network. Indeed, the currency can offer unparalleled stability, and enables start-ups to operate outside of a confusing legal or costly regulatory space.
The challenges ahead are clear. If ReMoneta is to make a lasting contribution to sustainable development, introduce shared values into global commerce, improve consumer choice and behaviour and strengthen the global financial system, there will need to be two-way discussion, debate and policy creation. This could help lead to a new era and more accepted direction for cryptocurrencies in general.
While ReMoneta’s possibility of driving global sustainable development may seem ambitious, it dovetails with certain sustainable development processes and discussions, such as the UN SDGs and the Addis Ababa Agenda above. Therefore, ReMoneta not only meets consumer demand for a stable currency, it also supports global values that have been endorsed at the highest political level.
The ReMoneta principle of being “open to anyone, anytime and anywhere” should be enticing to consumers and policymakers alike. This gives ReMoneta an even more secure, understandable and stabilising effect on markets. In this sense, it is leading the way in the new online currency market and at the same time generating a new, positive direction in global commerce. Born in the wake of financial crisis, these sustainable development goals could help chart a new course in global finance, and ReMoneta has the chance to play a role in advancing these goals and shaping a more prosperous and equitable future.
Kuido Merits – You can read the original article on Medium.