Silk has the potential to benefit both people in severe poverty and those in hyper-inflationary environments.
Private, stable money matters not just for Uncle Pennybags swing trading between his 8 BTC into stables… but for the 1+ billion citizens of earth who live on a few dollars a day.
Private, stable money matters not just for US citizens who are watching the dollar inflate… but also for the 1.2 billion billion citizens of earth who are in hyperinflationary environments.
Silk supports private value preservation in hyperinflationary environments
Abril sees that the Argentine peso is inflating at 5%… per month. So she divides her budget into three categories:
Category 1: Expenses be occurring within 1–2 weeks will be held in her local currency
Category 2: Short-term savings and expenses (1–3 months) are held in stablecoins
Category 3: funds that are not needed for a year or more are held in Bitcoin
Facing 60% annual inflation, this kind of strategic thinking is not only savvy but imperative for one’s financial livelihood. How does SILK fit into her story?
Silk Preserves Value and Privacy Better than Single-Fiat Pegged Stables
If Abril understands the weaknesses of single-fiat pegged stablecoins and is introduced to SILK, she would likely change her budgeting procedure.
Category 1: Expenses be occurring within 1–2 weeks will be held in her local currency
Category 2: Short-terms could be held in SILK (and would preserve their buying power much more effectively than something pegged saving to the USD)
Category 3: When it comes to long-term store of value (category three) she might run some calculus and decide to allocate less of her long term funds to Bitcoin.
Simply by holding Silk, April will now preserve value and preserve her own privacy in ways that are not possible through other stablecoins.
This story is an improvement, but still not the ideal. Abril’s grocery trips and utility bills are all paid in a national currency that is bleeding badly.
Imagine if Abril’s local marketplace accepted SILK. She opens up her SilkPay app and can make her purchases for the week without exposure to the peso and without exposing her data. Of course, this requires that the merchant is educated on SILK and prepared and motivated to facilitate transactions.
Cultivating the economic readiness for network adoption of an app like SilkPay is not a technical challenge but a social one.
Silk supports private value preservation in severe poverty
Globally, 84% have smartphones while only 60% have toilets. A toilet is the basic measure of sanitation, without which disease runs rampant. SilkPay will open SILK adoption potential to 1.8 billion people who have smartphones but don’t have this basic measure of sanitation in place.
1.8 billion people who have a smartphone and are in severe poverty will have an opportunity to privately preserve value for their families in ways that aren’t possible now.
Let’s be clear. Access to Silk alone won’t improve the systemic issues associated with this level of poverty. Those are enormous hurdles that require our energy, attention, and compassion. But can SILK access yield a small improvement via private value preservation for a family of four in living on three dollars a day?
Can this technology find a supporting role in the stories of everyday people, their lives, their communities, and what matters most to each of us? Finding the answer to this question requires releasing assumptions that we know what is best for another, stepping into their world, hearing their story, being curious with questions, understanding needs, and exploring a partnership that leverages contextualized strategies to address those needs.
With this slowly woven, relational fabric, SILK has the potential to find a home within native environments and support their financial resiliency and freedom.
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