“I'm not interested in preserving the status quo; I want to overthrow it.” Niccolo Machiavelli

It is great that digital currencies are taking banking to a new age. We are going from wiring money in days to just seconds and that is a great leap forward. No more asking for permission to have access to your own money and no more insane fees either. Banking as we know it will never be the same, thanks to bitcoin, ripple, nxt and all the brave souls that decided to push our digital generation through digital values, a step forward.

What about the current financial system? What about going from boom to bust every seven to ten years? Who is going to make sure that my Fluffycoin, Purplycoin or Lulucoin is going to preserve its buying power?

While digital and crypto currencies are changing Financial Technology (FinTech), most of them are trying to preserve the status quo by creating values out of thin air. It will be no different that when federal banks do it; the bubble will burst and many will get hurt, financially. It is as if we are in a war and instead of finding peace, we believe that upgrading our weapons will be the solution. Yes, sure, the side with the biggest guns will win the war, but that means that there is one side that is left hurting. Just like with the current financial system; every time there is a bubble, many are left broke but many end up wealthier. Money does not evaporate, it exchanges hands.

The temptation of wealth is just too irresistible, so irresistible in fact that we don't care to ask ourselves "where is the value coming from"? We just follow the mania and become another euphoric node in whatever network is promising us great returns. There are over 450 digital currencies available today with a collective market cap that tops six billion US dollars, yet less than 10 of these currencies could justify their value. Bubble anyone?

What will you be holding in your digital wallet when the bubble bursts? If you ask yourself "Where is the value coming from?" you might have a couple of XNF coins.

Change is needed, not technical ones but fundamental.

Banking Pains!

About three weeks ago, we transferred our banking from Hong Kong to Dominican Republic the change has caused a delay in a handful of transactions.

I want to explain the situation. First, there is no internet banking for international transactions, so we have to physically go to the bank to process the withdrawals. Then for one week straight we were being told that something was missing each time we did the transfer paperwork: The company seal, authorisation form to convert into foreign exchange (DOP/USD) and depositing form for the USD account.

We even had the bank come to our offices on the 2nd week and do the paperwork at our side, but that did not work either. The las message from the bank was yesterday, that all the transactions to China and Japan, needed an intermediary bank. So fine, we were going to try again, but guess what? we needed an authorisation letter from the company to be able to put the money back into the account! Money that was coming from our account needed our authorisation so that it would not stay in Limbo. This is insane. 

Lesson learned though. Banking will be done in Hong Kong until we find more reliable partner here. This is exactly what is wrong with the current banking system, there is too much red tape when you want to deal with your own money. Free to deposit but not so free to take out. Unfortunately, some of our clients are feeling the same about us at the moment. I assure you this is not the case. We will resolve this matter this week. We have sent funds to Hong Kong and will process withdrawals from there. We did not do this before, because of fear that we would end up sending the same transaction twice, from the Dominican bank and from Hong Kong. But now that we know the money is in Limbo and on the way back to our account in the Dominican Republic, we can go ahead and submit from Hong Kong.

Maybe this is a good time to bring this up: The Free Banking Initiative.

 

NOFIATCOIN JAPAN

I have been approached on Twitter by Crypto Currency Magazine in Japan, @CCMag_Japan, in regards to the Nofiatcoin website in Japan, xnfjapan.com. See below:

CryptoCurrencyMag ‏@CCMag_Japan  13h

@XNFCEO @NoFiatCoin many japanse think that your partner in japan is scam company. now many japanse selling XNF http://hope.2ch.net/test/read.cgi/cryptocoin/1407330914/l50 …

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The answer is No, not any more. That used to be us in Japan. Ikuo Nakayama was the team member on the ground in Japan, helping us get set up.  

The same publication informed us that many, in Japan, are doubting our 20% return on investment from our agriculture investment options. See below:

CryptoCurrencyMag ‏@CCMag_Japan  13h

@XNFCEO @NoFiatCoin And many japanse doubt your 20 return of investment option. maybe more detail is necessary.how you insure....

Since day one we have spoken, publicly, how we aim to create a perfect financial system, where no one has to lose, from real tangible assets and works. We are not there yet, but these agricultural investments were not merely an idea that popped into our heads, it is all part of reaching that goal.

I will address the insurance question at the same time that I provide more details into the agricultural investments.

We are planting (yes, we are, not a third party) specific crops that bare fruit at least twice a year. We do this to maximise the investments. Notice that the investment contracts pay after one year even though we get at least two crops per year. Why is that so?

Even after insuring the crops and paying for all the costs that are involved with each planting season, at the end of the year we actually net about 75% on the original money invested (collectively), give or take a couple of percentages to deal with miscellaneous costs. We offer our customer 20%, we will put 20% aside to purchase more assets (gold, farms, etc), and 20% we will placed into the XNF market (buying back XNF coins) to provide liquidity and ensure its growth. 10% will be used to support operations and costs with Tilmore Investments S.R.L. The last five percent is the room we give ourselves for unexpected costs.

When we first came to research agriculture in the Dominican Republic, we landed in the Department of Export & Investments (CEI-RD), where we were informed about which organisation we needed to form and which constitutions were the correct ones for our future company, in order to be able to bring foreign investments into the country. We were then passed onto the Ministry of Agriculture where we had access to guidance, studies, statistics, exporting contacts and information on the department that insures crops, AGRODOSA.  As it stands, it is a government effort reinsured by well known international organisations, such as SwissRe (Switzerland) Hannover Ruckruvershicherung A-G (Germany). These reinsurance entities are responsible for 75% of the insured money, the government is in charge of the rest.

Last week in Bavaro, on the 2nd of September, not too far away from our office in Punta Cana, there was a seminar held by the Ministry of Agriculture. A major topic was Agro Insurance and the plans to make a Universal Agro Insurance in the country for all the producers (farming). The participation of representatives from the major international reinsurance companies, gave validation to the plans which seem to already be in progress.

What we are building, together with every XNF supporter, is a self sustainable and tangible financial system. Not in codes or crypto fluff, but in real operations. The soil is real to me, for it incubates the food that feeds the world. Metals are real to me, because shinny or not, they have an industrial purpose.