In theory, many cryptocurrencies technically fulfil the vision of Satoshi Nakamoto of:
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”
However, just because cryptocurrencies like Bitcoin can theoretically act as ‘electronic cash’, it doesn’t mean it has already achieved this status. True adoption is required to conclusively show that peer-to-peer cryptocurrencies can actually work as electronic cash in the real world.
Right now, there is little evidence that electronic cash can actually be adopted by whole communities and replace the native fiat currency. The superiority of cryptocurrency is therefore only theoretical.
Nimiq is interested in investigating this approach, with the support of the wider crypto community, to see if cryptocurrency is actually capable of being adopted by an entire community in the real world. If Nimiq decides to proceed with this plan, then TotalCrypto recommends that the following assessments are made:
- A case study location displaying the attributes conducive to cryptocurrency adoption would need to be selected.
- Academics with a deep knowledge of anthropology, economics and business should be onboarded to give input and shape the case study design. Participating crypto projects should allow data and processes to be shared with the academic community so that research can be conducted on the case study location itself. The goal is to generate the data required to gain deeper knowledge on cryptocurrency adoption in the real world.
- Charities in the area would need to be contacted to assist with onboarding trusted gatekeepers to run operations on the ground.
- Participating crypto projects would have to distribute a significant amount of value amongst all people living in the case study location. What happens when you give these people cryptocurrency?
- They have to take on the responsibility of keeping their funds safe.
- They have the opportunity to choose how to spend it and what they spend it on.
- The seeds of free enterprise have been sown. This has been shown to take root quickly. Even in newly built prisons, a prison economy will build up practically overnight.
- A dual currency system: To begin with, crypto and the local currency would both be in the local money supply. An exchange is required to swap local currency for crypto and from crypto to local currency. TotalCrypto recommends that participating crypto projects run and operate this local exchange as outlined later in this blueprint.
- A new approach to human development: If this plan is pursued, then crypto projects would need to invest heavily in an incubator located within the case study itself. With the help of the crypto community and other mentor contributors, it is recommended that selected locals are provided with:
- The access to the tools and software required to create online businesses.
- The mentorship and know how to build and scale a digital business.
- To create an environment where entrepreneurs can solely focus on engaging with the global economy without having to live from hand to mouth.
The chief goals of this proposed case study are:
- To show if cryptocurrency can be adopted by an entire real world community.
- To create a successful roadmap for human development that can potentially be scaled globally.
- To attempt to raise levels of wealth within the local economy of the case study location.
- To inspire more academic research into cryptocurrencies and deepen levels of human knowledge.
- For this proposed initiative to serve as a general contribution to the cryptocurrency space and deepen the understanding of crypto adoption. The vision is for potential participants to act as ambassadors of the crypto community to the mainstream.
This blueprint outlined here is intended to be a living document that needs to be refined and contemplated step by step.