New cryptocurrency will be backed by commodities.
Freedium, a Swiss company that is setting up at the Dubai Multi Commodities Center, plans to introduce the first stable digital currency backed by commodities and tracking the dollar. Freedium is expected to issue its first coin (the Freedium) by the end of this year and will provide financing to commodity owners in emerging markets.
“Mobile and smart phones have allowed these countries to get connected with the rest of the world and access the global information superhighway,” says Keba Keinde, co-founder and chairman of Freedium. “Now, blockchain technology can enable emerging and developing countries to efficiently transact with other nations and access global financial markets.”
The company said in a release that it “set out to develop a solution based on blockchain technology to unleash emerging and developing countries from constraints such as limited access to financing, foreign exchange scarcity, volatile currencies and limited access to banking services.”
“Our mission,” explains Aaron Dutta, a former global head of blockchain at IBM, now acting as Freedium’s chief strategy officer, “is to facilitate the seamless exchange of value between developed and emerging market trading entities in a trusted business environment.” Dutta is chairman of blockchain technology firm VAPHR.