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Informal credit, i.e. using IOUs instead of cash, is widely used in developing countries to overcome money scarcity. SikobaPay provides the technology to make informal credit much more effective:

  • Because debt is registered on a blockchain, users obtain legal certainty;

  • Users can transact beyond their immediate circle of trust, as SikobaPay identifies trusted intermediaries;

  • SikobaPay automatically clears circular debt, thus reducing the need for cash settlement.

We plan to release our MVP at the end of March 2020.

Pay with IOUs and Credit

For most of history, local trade was done on credit. People knew and trusted each other, and when they transacted they generally did it on credit, very little actual money changed hands. At regular periods, such as at village fairs and markets, debits and credits were tallied and cleared. 

 

The SikobaPay platform is designed to enhance, expand and automate these age-old mechanisms.

Reduce Dependency on Money

SikobaPay’s IOU platform performs clearing — the same tallying and offsetting of debts and credits that was historically done at village fairs and trade fairs— but on a more rapid and ongoing basis.


The result is that money is only needed to repay residual balances rather than the full financial value of all trade. Therefore, much less money is needed for the same volume of trade.

Payments Based on Trust

SikobaPay then expands on this age-old mechanism by allowing credit conversion, a system in which payments between participants who do not know or trust each other become possible. This is done by automatically finding trusted intermediaries.


Sikoba’s basic and most important rule is that a user will only ever have credit exposure to those they have expressly chosen to trust.

 

Reducing Money Dependency

Maria and Abi are business owners in the same community.
By granting each other credit lines and using IOUs, they can reduce the amount of cash they need to transact with each other. 


Take a look at how they do this. 

One-Way Credit Lines

Lee is a well known and member of the community.

Tara has just started her business. By granting each other credit lines and using IOUs, they can reduce the amount of cash they need to transact with each other. 
 

Take a look at how they do this. 

 

Credit Conversion

Credit conversion allows SikobaPay users who do not know or trust each other transact using IOUs through trusted intermediaries. Sikoba’s basic and most important rule is that a user will only ever have credit exposure to those they have expressly chosen to trust.
 

Take a look at how this works.

 
 

Clearing - Disappearing Debts

Clearing — the same tallying and offsetting of debts and credits that was historically done at village fairs and trade fairs — but on a more rapid and ongoing basis. The result is that money is only needed to repay residual balances rather than the full financial value of all trade. Therefore, much less money is needed for the same volume of trade.


Take a look at how it works.

 
ABOUT

Sikoba Ltd, 20-22 Wenlock Road, UK - London N1 7GU (UK company number 10283521)

 

Sikoba Research Sàrl, 24 Val St André, L - 1128 Luxembourg (Luxembourg company number B229147)

FOLLOW US

You can also contact us at info@sikoba.com

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