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• MTN Releases Whitepaper For Creation of MTNCOIN Digital Currency

eBitcoinics News   13 Nov, 2019   news.eBitcoinics.com   Views: 813

Citing Jack Welch the former CEO of General Electric’s famous quote “There are only two sources of competitive advantage, the ability to learn more about our customers faster than the competition and the ability to turn that earning into action faster than the competition” MTN South Africa had released what is going to be termed the most ambitious but heartwarming whitepaper.

The Paper is seeking to introduce the soon to be launched MTNCOIN project which is sought to be building Africa’s Universal Financial Services and Rewards Ecosystem.

The whitepaper had identified several issues that are currently threatening to disrupt traditional value chains across verticals, also had seen the need for global fintech’s which aims to eliminate inefficiencies, extend service reach and in increase consumer choice, a Heavy use of data-driven, digital-only approach, with Key verticals such as Financial Services, Transportation, Commerce, Logistics. Looking at the point that Digital payments fuel growth for all key platforms.

And had cited serious issues affecting the African Financial and Banking sector, capitalizing on the weak structures, low financial and banking services penetration, lack of credit history which prevents access to formalized financing, looking at the highest costs of remittance services, lack of access for SME’s and Agricultural financing a sector that stood as the backbone of the African economies, and the Interoperability of Mobile money transactions services which will thereby foster broader access to financing.

MTN’s whitepaper looks to focus on the move to go beyond simple P2P money transfer with a focus on advanced use cases around alternative credit scoring & lending, trade financing which it believes will change the look for just mobile money payment which nowadays, has about 130 mobile money service providers which enable 100mio active MFS users.

Looking at the technologies that are set to disrupt this financial sector, the Paper had listed AI and Blockchain as the Top 2 forces in that regard. It said;

• Blockchain revolutionizes the nature of finance exchange platforms.
• Distributed ledger model provides ultimate trust to facilitate transactions and interactions between parties.
• Provides fast, low-cost transactions, cutting out intermediaries.
• AI as the cornerstone to create advanced customer insights as a basis for data-driven offers MNOs with their vast data pool in prime position to profit.

The whitepaper states that the company is ready to lead the disruption of Africa’s financial services industry to redefine financial inclusion by;

1. Solidifying and expanding MTN’s position
2. Capitalizing on the global fintech revolution
3. Establishing MTN as Africa's dominant and universal mobile financial services and rewards provider
4. Launching Mtncoin as a universal digital settlement currency
5. Creating a pan-African open platform and ecosystem
6. Becoming the Kingpin in Africa’s next-gen digital financial value system which is going to be opened for everybody

The MTNCoin Digital Currency will be:

1. Established on the stellar blockchain protocol
2. Highly stable, secure bridging currency across Africa, supported by established MTN treasury functions and, importantly, by its data and airtime redemption assurance, which reduces the counterparty risk as a holder of the currency
3. High value-add currency through inherent of fast, no-cost remittance, automatic loyalty program benefits, embedded e-commerce shopping advantages
4. Controlled by MTN with an explicit utility to be used within its network

The MTN digital currency if launched can enable interoperable transactions across the board within a 5sec period for free. This is also believed to instantaneously become the biggest financial reserve in Africa.

Why stellar?

Stellar is a platform that connects banks, payments systems, and people.

 â€˘ Integrate to move money quickly, reliably, and at almost no cost. A common financial platform that is designed to be open and accessible to everyone.

 â€˘ Allows for fast, cross-border transactions between any pair of currencies.

 â€˘ Much faster and cheaper than bitcoin, for example, because of its unique consensus protocol.

 â€˘ Stellar transactions are nearly free. This opens up use cases, like micropayments, that isn’t feasible with other systems

The MTNcoin digital currency what is it:

1. An instrument with the ability to be used for payment of goods and services
2. An instrument with the ability to be used as a store of value for investment

What it is not:

1. It is not regarded as a currency, legal tender and or an e-money in south Africa
2. Neither is it going to be deemed as money, nor thus not a deposit-taking currency.

The regulatory body of South Africa the SARB’s position on the paper states Digital representation or token of value that can be used for payments within the private community.

And because the MTN currency will be a digital token of its own it is free to move globally across the MTN Global footprint and can be used by all of its subscribers. Allowing it to be exchanged on the edges within each respective country.

The Project’s main mission is to digitalize Africa’s economies and had partnered with Doshex (Blockchain Services),

DirectTransact (Banking Services), Summore (Loyalty & Distribution Services), IBM/Accenture* (Big Data & AI Services) as a single point of contact for MTN Group.

The news team had reached out to MTN South Africa for more info on this development which shall be allayed to our readers when it is ready.

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