Money By Design bridging institutional finance and blockchain
Interview with Olivier Rocca, Project Leader at Money By Design.
1. Could you briefly describe Money By Design and what the project aims to achieve?
Money By Design aims at being a new means of financing the economy by wisely bridging the world of institutional finance and the world of blockchain. To achieve this goal, Money By Design provides a decentralized architecture based on authority consensus where institutions can become an authority node. This structured ledger solution enables institutions to exercise control over the activity of all blocks through compliance rules that prevent errors and frauds. To ensure proper execution of smart contracts, Money By Design’s blockchain has specific functions, such as the Amend, Reject and Force functions that extend the power of the authority node by giving it the ability to correct, suspend or command the execution of smart contracts. Money By Design token is built from a value management algorithm that determines the price of the token based on the token’s distribution level in the user network. This allows Money By Design to provide institutions with price-stable tokens while offering them a value growth formula based on the number of users and the social success of the network.
2. Since the token is some sort of CDC and has its value derived from an algorithm, what are the challenges when it comes to raising capital for the ICO?
Unlike most fiat and cryptocurrencies, the valuation of the Geo Token is not based solely on its exchange value, but mainly on its use value. The Geo token is a programmable cryptocurrency that has the ability to self-determine its own price according to valuation rules known from its launch, which will allow investors to make more informed analyses and market predictions. The Geo token can be considered as a “network value token”, whose value is determined by an algorithm whose rules is known to all. It is one of the rare tokens that offers investors a mathematical rule of predictive potential value calculation. Such a mechanism is very useful for the GeoToken’s ICO because it works as an incentive for the investors. As the rule of the algorithm is “the more users, the more value”, this means that the earlier people will invest, the greater the chances of financial gains over the duration of the investment.
3. What sets your project apart from the other ICOs launching at this very moment?
The business model of the Geo Token is relevant for all the economic, social and political actors who face problems of funds distribution. Today, in most of the cases, any distributive operation is considered as a financial transaction that leads to an accounting loss. Geo Token’s price management algorithm allows fund distribution to become a value creation operation, as the fund distribution is correlated with the increase of the number of users in the network. Distribution is a source of value when it results in increasing the size of the network of GeoToken users. For large institutions like States, Insurances Companies, Development Banks, Social Welfare organizations, Humanitarian Associations, and International Companies, with a strong social dimension and a large number of users, Money By Design’s network value token will be an important source of profits that will enhance the social and human roles of these institutions and help them to monetize their social capital by turning it into assets.
4. Could you elaborate briefly on the concept of Smart Tokenization?
Money by Design presents itself as a service provider of Smart Tokenization for large institutions who have financial needs for their projects or who want to make profitable investments. Smart tokenization activities can be subdivided into 3 branches:
– Monetary: the ability to create dynamic and intelligent cryptocurrencies to carry out complex operations.
– Financial: the ability to monetize and authenticate assets on the Blockchain to finance diverse activities and needs.
– Economic: the ability to evaluate technological assets and create a stock exchange in which the Blockchain acts as a trading instrument
In recent times the growth of specialized tokens has led to the creation of the term Smart Tokenization which financial analysts today refer to as the Smart Transaction Market. This market differs from that of big data and artificial intelligence markets as it is based on already existing market elements: The money market, the financing market and the technology asset market.
5. To what extent is BNP Paribas involved in the project, and what are the prospective institutions that have shown interest in Money By Design so far?
BNPP’s blockchain office are advising the Money By Design project since the beginning. They help us in the financial and economical modelization and provide us technical support for communication inside the different branches of the BNPP. We are working to make them financial partners in some applications like the UIC application which is a POC for a smart contract that will work in more than 40 states in the railway flow management. Our openness and pedagogy approach of the blockchain for the institutions gave us the opportunity to be received by the World Bank and the IMF in February 2018 during a major seminar which was intended to explain the solutions that could bring Money by Design to these great institutions. We have also developed close relations with the French Financial Regulator (AMF). In this perspective, it is an honour for us to be received as speakers at the Malta blockchain summit on the topic of blockchain and regulation.