As others have mentioned, by and large, men are generally more interested in cryptocurrencies than women. I don’t believe targeting women specifically is a great strategy for adoption.
First off; appologies for the late response…
If men are generally more interested, we would need to find out why women are not and I dont think it’s because they are women. There isn’t much difference between men and women. The idea is to get non users to adopt a new currency for daily activities just as fiat and fiat is used equally both women and men use fiat. If less women use cryptocurrencies; just like a small population of the world uses cryptocurrencies, this is a huge potential market to tap into.
But aside from the discrimination debate, I’m more interested in the economics of your proposal.
Let’s move on, shall we…
Do you have any sort of information regarding how much SMART is currently being purchased from Ghana?
Yes, there are a few bitcoin exchanges, localbitcoins, lunoexchange etc. People and merchants would have to have to purchase Bitcoins/Ethereum etc with local fiat/usd and then use that to purchase SmartCash. If they go through all this (create a BTC/cryptowallet other than SmartCash, go through kyc etc, pay additional fees on two exchanges
) to obtain SmartCash; it is better they just use BTC/Ethereum for business as it is more convient(less steps and fees).
My concern is, what kind of return will SmartCash be getting for its (significant) investment?
Yes, it is an important amount investment but not as huge as people see it to be. Considering the population of Ghana which is 28 million, if 0,5 million people own 10 SMART each, that is just equivalent to 1,78% of the population.
SmartCash is also a very young currency, with increasing utility but still insignificant compared to fiat. The concept here is that SmartCash will initially act as an intermediary. The SmartCash essentially goes into the hands of new investors & supporters of the businesses. They are motivated to exchange the value of their fiat (which has much more utility and liquidity) for SmartCash; in order to support the women owned businesses so these people are expected to be more confident because they know precisely how their investment will be used and motivated because we are addressing a social issue (very much apparent to the people of Ghana) by creating opportunities for women economic empowerment. It is the fiat which initially holds value which is transfered to the businesses. The value is returned to the investors which we can consider new members of the SmartCash community and so, SmartCash. This creates an environment for growth of the currency itself through utility. (the value of the currency should increase with utility). So here, we have essentially created users and avenues for utility. It is the same as spending money on merchant adoption campaigns, except this is more effective in creating sustainable growth of the currency.
This is an enormous proposal, likely the largest ever conceived that I’m aware of.
Yes, it is. Took 1 month of development and planning. Quite exhausting on my part.
I’d just want some more details concerning what the Ghana market for SMART is like now, and what it’s likely to be after this project.
I hope Momako have answered this, he would be the one better able to give you the statistics. The market is expected to see healthy and stable growth after this project. The gender equality issue which we are addressing will also be a good catalyst especially in countries like Ghana where gender equality is very much alive due to strong cultural traditions. Women will be very much be appreciative of this iniative and we will gain recognition from local and international women empowerment organisations.
Additionally, for me personally, I don’t believe SmartCash should be involving itself directly in exchanges.
I respect and understand your view but it isn’t much different from an independent exchange. Price feed will come from recognized sources and it will not be in the benefit of SmartCash to manpulate or act maliciously.
Who is going to be managing the exchange and auditing the finances?
This will done by a team of future SmartCash community members. We will select the team after the training program/boot camp. They could be a Ghanaian extention of the hive team. Trusted existing members of the SmartCash Ghana community will act as watch dogs. Account access will be given to the hive team. I was thinking of the SmartFund being multi-sig if possible. A smartcash ambassador and member of the hive team would have to sign approval for processing of funds.
Will it be exclusively SmartCash or other cryptos as well?
Exclusively SmartCash, otherwise this would be quite costly. But even so we never intended to have other cryptocurrencies or add any in the future as we are only focused on the growth of the SmartCash currency in respect to fiat which is most liquid and direct trading of resources itself which is the main goal.
Will profits be returned to SmartCash or if not, what is the plan for distribution of the profits from the proposed 0.5% fee?
0,5% fees from the exchange would be needed to maintain exchange itself and to provide incentive for the people running it. The fees from the SmartFund will be needed to pay the management team as it can not be done voluntarily, this may likely be a full time job. “smartcash for women empowerment” website. [We expect to grow this website and form partnerships with local and international women empowerment and gender inequality organisations.]
An an additional question ; “what if there is a net profit afterwards?”
We can return it to the SmartCash investors in this way: By increasing the value of the SmartCash in the SmartFund to represent the increase in profit but this can have dire consequences or by just reducing the fees or by requesting that businesses give special discounts to the investors.
Who keeps the 5 million after it has been exchanged for local Cedi currency?
If you are asking who keeps the Cedi currency. It is kept by the management team which we wanted to be an extension of the hive team. Access will be given to other members of the hive team. Finance auditting reports will be sent and shared. This is done in phases. 5 Million SMART is not released at once. Except for the first phases, only 1 million Smart is released/25 businesses. Previous phase has to be done successfully for more funds to be released. This is why this is done/4 months.
Will you be acquiring more SMART with the Cedi? How would you do this and why can’t locals use that same method?
The cedis are used to fund the businesses. SmartCash is a currency, a means of exchange and not a resource, its value is expected to increase with utility. We will not acquire more SMART with cedis.
These liabilities introduce too many what-ifs for me, and I believe exchanges should be generally left to the free market. If individuals are interested in acquiring SmartCash, there are more than a few exchanges already available to do so.
If people have to go purchase bitcoins/other cryptos to then purchase SmartCash it is better they just stick with fiat and use a bank card. (Fees will comparatively the same or less)
I also feel like your proposal lacks direction. It’s trying to do too many things, from supporting women and getting them involved in crypto, to a business incubator, to a crypto exchange. Projects that lack direction tend to be unsuccessful.
It doesn’t, everything complements the other, what it is, is more complex but not difficult to run or execute. There is clear planned steps and adequate timeline to do this.
Ultimately, how are we to measure the success of this proposal?
Continuous monthly reports: businesses, finance, customer surveys: we expect the businesses to create more smart users my promoting smartcash to them and offering them to receive their balance in smarts.
For me, I’d prefer if you broke them up into individual and more directed proposals, as part of a larger push for adoption in Ghana.
The proposal is already broken down into phases/steps with an adequate timeline. Separating it would not make much difference but we are looking into eliminating a few things.
Because the proposal, with my input, was developped into a bit of a bigger project than it was before, I will consider removing the business incubator entirely but this will reduce sinificantly, the potential benefit to the community and the currency. We can go ahead and seek funding without involving SmartCash. In this way funds will be given without the use of SmartCash as an intermediary and SmartCash will no longer be distributed to a greater number of the Ghanaian population resulting in less utility. We also will not beable to talk about SmartCash as a means of creating opportunities but rather just only talk about issues rather than attempting to solve them. The impact will not be as great and neither will women empowerment organisations take us seriously. We will be doing nothing special except just say we support women empowerment.
A big thank you for your questions and reasonable concerns. I’ll be willing to discuss with you more if you have any more questions.
Also see my respone to slpin, interesting stuff.