SWAPY – Using Blockchain to Enable Easy Access to Credit and Affordable Loans

The biggest problem affecting low-income earners in developing countries from achieving a better quality of life is inaccessibility to credit. In fact, one of the main goals of the United Nations is inclusive and sustainable economic growth that can only be achieved if low-income earners (for emerging economies) with limited access to credit and loans are given financial inclusivity through decentralization of credit facilities that are currently dominated by the big banks.

In Brazil, for instance, credit is not only expensive for the larger majority but remains out of reach with a mind-boggling average annual loan interest of over 140 percent with over 40 percent of the entire population remaining locked out of credit facilities according to the Brazilian central bank. According to tradingeconomics.com, apart from Brazil (ranked number 43 globally) other developing countries that feature exorbitantly high-interest rates also include Venezuela, Mozambique, Ghana, Congo and Argentina with the highest interest at 27.25 percent. Compared to the US these numbers are alarming.

However, there seems to be hope on the horizon with the disruption of the financial industry thanks to transformative technologies like Blockchain and cryptocurrencies. Individuals working and living in developing nations with limited access to credit can now access affordable loans thanks to the trustless and decentralized Blockchain technology as incorporated in networks like Swapy (a Blockchain based startup that is seeking to enable universal access to credit).

What is Swapy?

With Global Findex reports indicating a total of about 2 billion people lacking access to financial services globally, Swapy is set to close in on the gap by providing a Blockchain enabled solution that brings about global credit pervasiveness. Basically, the Swapy network is an open source platform built on Blockchain to provide universal access to credit on a decentralized and trustless network. With the main aim of connecting investors and companies with cheap capital to emerging economies such as Brazil, Swapy will essentially build a smart economy where there exist borderless interactions between investors in low-interest credit economies and creditworthy individuals located in emerging economies.

By establishing a peer to peer data market network for credit facilities, Swapy will be able to lover cost of capital in emerging economies and give high returns to investors from countries like the USA and Canada that enjoy lower interest rates on the Swapy exchange. Furthermore, through the use of Blockchain, Swapy will manage a Swapy financial ID that is set to establish individuals from emerging economies by giving them financial identities allowing them to manage their personal data anywhere on the globe.

Swapy Giving Control Back to the Users

Swapy is set to not only restore accessibility to credit but also facilitate information asymmetry. The company recognizes the value of personal data and plans to use its Blockchain network to restore power and control of personal data back to the users of its platform. Currently, consumers of financial products from banks have zero control of their financial data while individual banks profit from the use of the data to market and realize growth. Basically, the Swapy platform is built so as to get rid of problems caused by information asymmetry. The entire project will attempt to use Blockchain to return value back to the clients and enable data privacy and security for all users on the platform.

This will also reduce the cost of capital and credit since most centralized financial institutions that are currently the gatekeepers of the industry in emerging economies will no longer have leverage. This will make it easy for individuals to access their own data and profit by exchanging their data for tokens. Eventually, Swapy will build a global data market that allows for the exchange of data and tokens on its platform.

Swapy’s Circular Economy

The Swapy network will also develop a self-sovereign identity approach that will allow for peer to peer services and products to change hands through the use of the SWAPY token. These decentralized services will be available for all users of the platform and are set to build a community that enables value addition the platform. Furthermore, the self-sustainable ecosystem of participants will continue to build upon the overall Swapy mission of a fully sustainable B2B fundraising ecosystem.

The Team

The dream of Swapy began with Ed Rodriguez Rodrigues who is the founder and CEO of the company. According to him, the potential that access to credit holds in improving the lives of people is enormous and that is why he was motivated to start the project. The company is currently fully owned by Credit Dream (a Delaware cooperation that began in 2014 November). The team at Swapy also boasts of a good number of employees including software developers and community managers.

In addition, the company also boasts of the support of Tim Draper and Don Tapscott (both renowned investors in the financial industry).

Since its humble beginnings in 2014 the company has so far received upwards of $300,000 in funding from Draper Associates with its investors lauding it for making the vision of easy access to credit a reality for millions across the globe.

Swapy’s ICO Details

With a focus on making credit accessible around the world, Swapy is looking to raise $30 million worth of Ethereum in its token sale that is set to launch on 12th of March 2018. The ICO is set to have three phases with a presale discount of 15.38%, 12.31% and 7.69% for the three phases respectively. Furthermore, 50 percent of the tokens are set for distribution during the ICO and the company plans to use the funds from the sale to market and build the three dApp platforms that is will provide its users.

• Token symbol: SWAPY
• Token Type: ERC20
• Total Token Supply: 100 million
• Hard Cap: $30 million

Conclusion

Unlike most Blockchain startups that mostly come out of the blue, Swapy is backed by Credit Dream (an incorporated entity that has been in existence since 2014 and boasts of experience creating solution to problems concerning access to credit). Furthermore, the company is also lauded by renowned investors such as Tim Draper and Don Tapscott who became believers of the Swapy Vision last year.

In addition, the Swapy team has been tried and tested among other startups receiving media coverage and coming up at the top of various startup award programs. For most crypto enthusiasts, solutions such as what Swapy is offering could not have arrived at a better time as Blockchain and cryptocurrencies continue to disrupt the financial industry.

Images courtesy of Swapy

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