Today's world is highly interconnected, bringing people around the globe much closer together than ever before. However, we are still sadly far from a truly united world. Nearly 3 billion people remain virtually locked out of the world economy, unable to open bank accounts, obtain loans, or easily engage in transactions online. Due to the monopoly on international transactions held by the Society for Worldwide Interbank Financial Transactions (SWIFT), dozens of countries experience difficulty simply engaging in legal cross-border payments and many more struggle with weak currencies and high debt. More than 150 countries don't even have access to the Bank of International Settlements
, making the current global economy highly exclusionary in nature.
Moreover, sanctions, trade wars and currency manipulation threaten to wall off countries that have already been integrated into the global economy and undermine its stability. As the U.S. levies tariffs against a number of countries, who issue their own counter-tariffs in return, we see just how fragile the global economy can really be. As a result of these trade wars breaking out around the world, the IMF has cut its forecast for the global growth rate
from 3.9 percent down to 3.7 percent. Nationalist movements in the U.S. and Europe threaten to further isolate developing economies at a time when they could be the biggest drivers of global economic growth. Economic sanctions, like those imposed on Iran for example, quell economic development before it can begin in countries that are otherwise ripe for new projects and investment.
Whatever the political reasons sanctions are enacted, it is the average citizens who suffer the consequences; Iranians report difficulty buying food and paying their rent
as a direct result of sanctions imposed upon their country. Imported medicines are out of stock and escape seems impossible. In Venezuela, the story is much the same; a collapsing economy leaves the average citizen subsisting on a monthly wage
that buys no more than a liter of milk, four cans of tuna and a loaf of bread. The actions of a few powerful players marginalize many who would eagerly participate in worldwide transactions and international business every day.
How can we ensure their participation in the world economy while also lifting the half of humanity that has thus far been excluded from it? The answer lies in a stable, decentralized infrastructure, which can be easily provided by harnessing blockchain technology in the right way.
Establishing legal, cross-border trading with a blockchain technology
Countries do not actually need fiat money to establish cross-border transactions for trade, investments or money remittance, however, meaning all these problems are artificial in nature. If an alternative method of accounting and multilateral settlement could be devised - one that is stable, free, fast and uncensored - all that ails the global economy could be addressed in one fell swoop. Blockchain is the perfect fit for such a solution, and at the heart of this infrastructure should be a stable digital currency.
Unfortunately, most of the stablecoins that exist today are depositary receipts made by centralized agents, rooting them to the old ecosystem and creating the same problems. As a result, these services ultimately face the same restrictions as traditional institutions and do not address the core problems facing the global economy.
A truly stable, decentralized global currency could leverage the International Monetary Fund's (IMF) Special Drawing Rights (SDR,) an international reserve asset based on the value of the U.S. dollar, the Euro, the Chinese renminbi, the Japanese Yen, and the British pound sterling. SDR is highly stable, making it a suitable index upon which to base a decentralized global currency that could offer equal economic access to people in every country. The ideal environment would allow for a total departure from the traditional fragmentation of fiat-based economies, but in the interim, indexing this stablecoin to SDR allows for easy conversion to and from fiat currencies around the world.
A workable solution also requires an adequate payment channel, including a digital wallet, storage methods and the transfer of assets. To be accessible to all countries, this solution needs to be fast, cheap and reliable. It also must be free
; it cannot be in the hands of a small group of powerful institutions that dictate the rules and control the system. Instead, it must exist for the benefit of all the people of the world.
The result would be a truly united world that could easily engage in transactions quickly without fees, as well as come together to collectively fund important projects anywhere in the world. Imagine what this means for traditionally underserved economies and the people who live within them! Where banks would not offer loans, the community could come together to quickly and easily fund critical projects.
Meet the Mile Blockchain
There is already a solution out there that meets all these criteria: the Mile Blockchain. It is a fully decentralized system with a network capacity up to 10,000 nodes all over the world. There is no owner, no author and no ICO. It is also open source, making it truly free and horizontally organized. Best of all, the blockchain is already working, using a new consensus model that achieves transaction confirmations in 10 to 20 seconds with zero fees. That's right, ZERO fees!
The Mile Blockchain supports both the stablecoin XDR (which is tied to SDR) and the digital asset MILE, which acts as an index of demand for XDR. With this platform, XDR becomes the means of both value storage and exchange, while locking MILE within the blockchain's nodes helps ensure the stability of the blockchain itself and enables the user to mint more XDR as the demand for the stablecoin increases. In a sense, supporting the infrastructure's growth and development opens up a new channel of revenue that increases in value as the demand for XDR around the world also grows. With a whole world to connect, demand is sure to skyrocket, providing a big incentive for many users to support the infrastructure with their funds.
While the Mile Unity Foundation evangelizes the Mile Blockchain, it is a public benefit organization that does not own the infrastructure nor stand to profit from its adoption as a global economic solution. Mile Unity are merely believers in this project and its promise of uniting our global economy and directing much-needed resources to underserved economies. The Mile Unity Foundation has already signed a partnership contract with the Brazilian Chamber of Commerce, opened an embassy in South Korea, and met with officials from Namibia and Turkey to discuss their usage of the Mile Blockchain for cross-border trade and investments.
To learn more about building a new, fairer and better global economy visit mile.global
. Humanity is much better together, and blockchain technology offers us a chance to cooperate like never before. We've got nothing to lose but our borders and the walls that come along with them. Join us on this journey as we aim to solve the problems of today's economy and build the interconnected world of tomorrow.