Pages

Thursday, February 6, 2014

Some Q&A on Klickex and the GSD (Global Stability Dollar)

Of all the articles, interviews, and links I have placed on this blog, the posts on Klickex and a potential new asset backed digital currency (the GSD) have generated by far the most interest. It even led to an article I was asked to write that appeared in Bitcoin Magazine.


It's understandable because if this new currency were to gain widespread adoption it would impact the whole world to some degree depending on how widespread it became. I have had many people ask me questions which is also natural. Based on what my research has turned up so far I will try to offer some Questions and Answers as best I can right now that most people (like me) would probably have.

Q: Is this intended to be a "one world global currency" all people would be compelled to use?

A: No. My research does not indicate that. Rather it indicates it is intended to be an alternative place people could go with confidence to put some of their savings. It would not replace any existing currency or seek to be the only currency used globally. It would hope to be seen as a secure, stable, currency people could use as an alternative to other places to store wealth.

Q: How will it work?

A: I don't have enough details at this point to answer that properly. In a general sense I believe it is intended to offer the advantages of Bitcoin (tradeable between people anywhere in the world using mobile technology) combined with a unit of value that would be backed with enough assets to provide confidence in its stability. It would be approved by regulators so it could be used with confidence within the current banking system. It could allow people to transfer it in real time with lower fees if they wanted to do that (Klickex does this now with their current products). So, it would be attempting to combine the advantages of new digital technology with the advantages of having solid asset backing to maintain stability and user confidence.

Q: When would this currency become operational and available in the marketplace?

A: I am not sure on this. I believe it will take some time. Since it is intended to have regulatory approval, that process would take time. I believe the technology is pretty much ready to go. So the timetable probably is more dependent on how long it takes to get regulatory approval. I don't know if there are any political obstacles to its implementation.

I would not expect this to be a "breaking news" type event where something exciting is happening every week. More likely a slow and steady process over time. And it might roll out in a few places first, then spread to other places. That is why I want to follow it over time to see how it all unfolds.

Q: Jim Rickards points out that digital forms of money (he is talking specifically about Bitcoin) depend on the internet and the electric grid to function. Does this product have the same issue?

A: As I understand it, it would have the same issue. Of course, if we have a situation where the power grid and internet are not accessible for a long period of time, a lot things we depend on are going to be seriously impacted. It's why everyone should have some kind of tangible emergency fund. That is just a good idea for any possible future situation.

Q: What is your opinion of this?

A: Really my opinion doesn't matter much. If this becomes a part of the global monetary system then it is something we all need to learn about and understand. Knowledge and understanding helps reduce fear and speculation. But just for the record, from what I can see at this point this product could be something exciting and good for people if used properly.

It needs to be open and transparent. It needs to be designed to help and serve people. Everything I see so far indicates to me that it is intended to be open and transparent and helpful to people. It is just early in the process right now so I doubt we will see much about it in mainstream news sources until it is closer to implementation.  My goal is to educate and inform so I will follow it and try to report anything on it that is available to the public domain as things progress.

Summary: This is not something to be worried about. It is a potentially useful product that could enter the global marketplace in the future. Right now it is early in the process so not a lot of details are available. But they will be if and when it becomes a real currency that people can use. The company CEO is a very bright guy and you might enjoy looking at his linkedin bio page here.  Also, here is a nice article related to a university he graduated from in New Zealand. Bank Innovation lists him as one of the "top 44 executives shaping the future of banking." A very nice guy in my limited interaction with him. Here is a quote from the last article that gives you a feel for his passion and hopes for his product.

“With that now in place, we can fully focus on powering up our global change program based on this backing, and the proof of concept we demonstrated in our humble little South Pacific pilot – it’s all very exciting for a couple of farm boys from the Wairarapa and Warkworth – it just goes to show what can be done!”

Addendum:  I found this interesting interview with Klickex CEO Robert Bell on Youtube done at a Silicon Valley forum in 2012. In it he goes into some details about the history of his current product (mobile money transfers) and his view of where it would go in the future at that time. 

Of course now we know he has developed a cryptocurrency platform to be used within the banking system and tradeable in real time anywhere in the world. This interview gives you an idea of how he could take what Klickex already does and add on the new currency. They already do currency exchanges in real time so this would just be another step from that.

No comments:

Post a Comment