We recently connected with Andrew Saks, who talked about the importance of financial inclusion for the vast majority.
Notably, 1.4 billion people remain unbanked, which takes several countries in Southeast Asia to allow a larger virtual currency ecosystem to take root in their countries. The region is following the European Union with its recent MiCA regulation, which can create more inclusion and fairness.
Andrew Saks is the Head Of Marketing at The People’s SCE, a Decentrally Governed Organization (DGO) that manages products and services built on top of the eCredits Blockchain and provides a legal framework for consumers and regional businesses to actively participate in decisions about the future of eCredits.
Our discussion with Andrew Saks on the topic of financial inclusion and regulation is shred below.
Crowdfund Insider: How can cryptocurrencies and blockchain technology play a role in promoting financial inclusion?
Andrew Saks: Financial inclusion remains a pressing global issue, currently over 1.4 billion people are without access to financial services. In our current centralized system, institutions and intermediaries like banks act as gatekeepers and can marginalize individuals from access to financial services. From identification and rating requirements to physical accessibility and fees, financial exclusion has many faces. Blockchain technology and cryptocurrencies can help break down those barriers and create a fairer financial system.
Decentralized by nature, cryptocurrencies serve as a viable alternative and can help protect the public from erroneous corporate policy from the financial crisis in 2008 to the ongoing potential US debt default. Cryptocurrencies have reached a point where they can provide individuals and businesses with a variety of alternative financial services.
Through their peer-to-peer architecture, which is known for being faster than traditional models, cryptocurrencies are not only more efficient but can also offer cross-border payments with lower transaction fees and extend loans to individuals who may not qualify for traditional banking services. These advancements play a vital role in broadening the availability of financial services for the unbanked and underbanked population and promoting greater financial inclusion.
Crowdfund Insider: You highlighted the potential of blockchain and cryptocurrencies, but what is holding adoption back?
Andrew Saks: While technological awareness and understanding might come to mind, one of the most pertinent and timely factors is regulation. To gain trust and increase adoption rates, regulatory clarity is crucial, and the past few months have been a regulatory whirlwind. The US has transitioned from a fragmented approach with crypto classification confusion to blunt enforcement, causing multiple crackdowns and lawsuits in the country.
But the story doesn’t stop there, the recent high-profile litigation against Ripple, has represented a turning point. Ripple decided not to simply take it as a one-sided, zero-sum outcome and fought back, with a fair chance of being able to prove that the regulatory actions were unjustified. It has given rise to a school of thought that the authorities were in this case perhaps not acting in the best interest of the average member of the public, but potentially in the interests of the traditional financial industry.
As the back and forth of opinions and actions between US legislators and the crypto industry plays out, innovation and adoption hold in the balance. We believe that the mainstream adoption of cryptocurrencies will only occur with the support of regulations, like Europe’s Markets in Crypto-Assets (MiCA) regulation.
Crowdfund Insider: On the subject of regulation, what are your thoughts on MiCA? Will the regulatory development drive Europe’s crypto dominance?
Andrew Saks: MiCA provides a clear and comprehensive set of rules for the issuance and operation of crypto-assets, instilling confidence and legal certainty for both organizations and investors. While made up of member states, the regulation sets out consistent rules for Europe, enabling a harmonized approach that will bolster the region’s crypto competitiveness.
This is a view shared on both sides of the pond with SEC commissioner Hester Peirce recently stating that the US may leverage MiCA as a template for future crypto rules. In a statement, Peirce argued that the US will, instead of embracing new technology, embrace stagnation and the need for a regulatory system is crucial to balance risk and innovation.
The introduction of MiCA as a regulatory initiative positions the EU as a hub for reputable industry players, prioritizing users’ interests and fostering innovative solutions instead of creating barriers. At eCredits, we are committed to constructing a decentralized financial ecosystem that promotes financial inclusion while ensuring our members are protected by adhering to regulatory frameworks. We see MiCA as a regulatory initiative positioning the EU as a stronghold for serious players in the industry that put customer interests first and build solutions, not walls.
Crowdfund Insider: With trust in crypto companies taking a hit over the past year, what measures have you taken to ensure trust in eCredits and your currency ECS?
Andrew Saks: As a decentralized, blockchain-based ecosystem, we democratize transactions by enabling consumers and merchants to make and accept everyday purchases with our native cryptocurrency (ECS). We remain committed to providing our community with access to eCredits (ECS) on reputable and regulated exchanges, as we continue to champion a more transparent and trusted crypto industry.
With that in mind, we recently announced that ECS has been listed on Bittrex Global. Bittrex Global is one of the longest-established crypto exchanges and it has demonstrated a strong commitment to protecting its customers by remaining compliant and adhering to the wide array of regulatory measures across the globe. With our commitment to our ecosystem, we only partner with like-minded organizations that are licensed and regulated. We welcome and follow any new developments in relevant regulations like MiCA and will continue to work towards a more transparent and regulated crypto industry.
Crowdfund Insider: What other development does eCredits envision for the future of cryptocurrency, and what role does it see itself playing in that?
Andrew Saks: Payments and daily transactions are currently highly monopolized, leaning in favor of large corporations while SMEs are left behind. In contrast, eCredits envisions a more democratic approach to conducting business. Through our decentralized, blockchain-based ecosystem, our aim is to empower local businesses and consumers to take charge of their financial well-being.
All applications within the eCredits ecosystem are powered by The People’s SCE, a Decentrally Governed Organization (DGO), that is the first cooperative in the crypto industry that allows its members to have an active say while prioritizing simplicity and transparency, thanks to the blockchain. Moreover, eCredits blockchain contributes to the financial well-being of the community by charging less transaction commission compared to the standard credit card fees. Because crypto transfers are made peer-to-peer, on the blockchain, there are far fewer middlemen involved – and transaction costs are kept low.
Certainly, the future, if it is to represent any form of progress, should be a future in which the general public, regardless of status or means, is empowered and is equally represented without a hierarchical structure or centrally issued policy. Technology, if used correctly, is there to improve the lives of people. That is where we see the future and eCredits centrally positioned. Through addressing critical challenges and offering practical solutions, we strive to contribute to a transformative shift toward a more accessible, trusted, and inclusive financial system.