Ithacash is proud to announce the selection of Bancor as a platform for the Ithacash digital currency, which empowers local economies and builds community wealth, through an on-the-ground implementation of community currency using blockchain technology.
Ithacash will be one of the first community currencies to allow its users to take advantage of the low-cost currency convertibility platform and other value added functionality that the Bancor protocol provides to a new generation of “Smart Tokens”.
The Advantages of Continuous Liquidity
The Bancor protocol enables any currency to maintain continuous liquidity and convertibility with others— only without the risks or costs of going through a centralized exchange. This is achieved through an innovative reserve mechanism which allows cryptocurrencies to hold one or more other tokens in a reserve balance, directly through their smart contracts. This reserve is then used to automatically calculate the tokens price.
For community currencies like Ithacash, convertibility enables users to save more efficiently by converting their Ithaca Dollars (i$) into assets that appreciate over time, into blockchain-based investment products (such as decentralized ETFs), or even into USD.
Eventually, users will be able to exchange their i$ into other regional currencies across the US and around the world. The purpose of this would be to be able to purchase goods that are not produced in the region—green coffee beans, for example—while simultaneously supporting local values and economic resilience movements in other parts of the world.
Blockchain technology holds advantages for more than the tech-savvy. Both Ithacash and Bancor believe this to be true and intend to offer products easily accessible by all. Together, Ithacash and Bancor will become a model use-case for other community currencies to emulate and partner with.
“I am very excited about the potential the Bancor protocol offers to Ithacash and to regional currencies around the world. This is a revolutionary technology that unlocks so much that was either too costly or too complicated just a few years ago.” says Scott Morris, founder of Ithacash.
Through Bancor, there will be an increased interconnectivity between community currencies, allowing a rising tide to raise all boats.
“We are excited to onboard a reputable and established community currency such as Ithacash to the Bancor platform to demonstrate the power of smart tokens in action. Users will benefit from automatic convertibility to other liquid tokens (such as Ether), and we hope this will help encourage other local networks to upgrade or create their own local currencies too.” said Guy Benartzi, Founder of Bancor.
Disclaimer: This is not investment advice and does not constitute any solicitation or endorsement of any investment. Any investment you make is done at your own risk and at your full and absolute discretion.
Background & Other Partnerships
Last week, Bancor announced a partnership with Qoin, the Dutch organization that has provided community currencies with expertise and operational support for over 20 years, including Ithacash. Qoin powers five community currencies in the UK, France, and the Netherlands, where their SamenDoen currency has been leading the field. One of these currencies is the Brixton Pound, which became known worldwide because of the coveted B£10 note which features David Bowie on its front.
Ithacash was launched in 2015 and is a community currency project that serves Tompkins County in upstate New York. To date, over 700 accounts have been created, including 72 businesses and nonprofits.
The Bancor protocol is a standard for a new generation of cryptocurrencies called Smart Tokens. Smart tokens utilize an innovative reserve mechanism to guarantee continuous liquidity and automatic price discovery for user-generated currencies.
For more information about Bancor and the upcoming BNT token allocation event, visit www.bancor.network.