Startup creates the first crypto-money for mobile payments

Telcoin, a Japan-based start-up, is about to launch the first mobile crypto-money, the first crypto-money distributed by mobile operators and accepted everywhere. Its objective: to reach the market of the two billion unbanked people in the world. In the line of sight, the creation of a new currency capable of seriously competing with traditional currencies and the usual banking networks.
" TEverybody talks about crypto-money, but who really uses it? Our ambition is to change that. We started from a simple observation: there are 5 billion mobile phones in use in the world against only 1.2 billion active bank accounts linked to means of payment. In other words, today people use their phones, not their banks! And moreover, the mobile phone is gradually transforming itself into a digital wallet. But we want to go even further because there is a real need, especially in developing countries. That's why we are creating the first mobile crypto-money "said Claude Eguienta and Paul Neuner, co-founders of Telcoin.
The crypto-monaie Telcoin is based on the Ethereum blockchain. It will be distributed by telecom operators in order to be available to billions of users worldwide without additional registration, using only their mobile phones. Telcoin will thus provide everyone, everywhere, with an ultra-secure and easy-to-use mobile payment solution, with or without a bank account. Telcoin claims to have already convinced several major operators in Asia, Africa and Europe, representing more than 350 million potential users worldwide.

A new approach to crypto-currencies for a wide and fast diffusion

Telcoin benefits from a unique positioning, at the border of telecoms and crypto-currencies. Telcoin will be provided free of charge to partner mobile networks, in exchange for its distribution to their subscribers. This simple and fast provisioning should make Telcoin the first crypto-currency used by everyone on a daily basis. By relying on mobile phone operators, Telcoin will strengthen trust between the players in the payment chain, quickly reach a critical mass of users, and meet compliance challenges, particularly in terms of customer knowledge. These are all assets that help to remove the main obstacles to the widespread use of crypto-currency.
A first application was sent by the startup, that of international money transfers. The money transfer market is valued at USD 500 billion while only 1% of transactions are made through mobile devices. It is a market that opens up naturally for Telcoin, which intends to simplify this type of transaction at a more attractive cost. In a second phase, the startup intends to tackle the entire mobile payment market.
The company has a solid foundation. It is managed by two complementary and experienced co-founders. Paul Neuner, President, has more than 20 years of experience as a telecom entrepreneur. He founded Mobius, a leading solution in telecom fraud management. Claude Eguienta, CEO, has worked for almost 10 years for start-ups and large technology companies, after having obtained a master's degree in computer science, focusing on
distributed systems. 
For its next fund raising, Telcoin will naturally use an ICO (Initial Coin Offering).

READ UP : ICO, three letters that will change startup funding

This ICO will allow subscribers to purchase telco's with a discount and thus participate in the creation of a new crypto-money, before it is distributed by mobile operators. Scheduled for December 11, the ICO is currently in the pre-marketing phase and has already raised more than $11 million.

Concern in traditional financial circles

This startup is advancing in a field that worries the biggest players in traditional global finance. Everyone is wondering about the surge in the price of bitcoin, which has just eagerly exceeded 10,000 $, and many are crying out for a speculative bubble.

READ UP : Bitcoin, an archetypal bubble ready to explode?

Randal Quarles, the governor of the U.S. central bank, the Fed, is concerned that crypto-currencies like Bitcoin could pose a threat to financial stability when used more widely. He recalled that in times of financial stress, the demand for liquidity from financial players increased sharply and that the behavior of digital currencies in such circumstances was still unknown. « The currency, the asset on which these (monetary) systems are based, is not backed by other safe assets, has no intrinsic value, is not issued by a regulated banking institution and, in this case, is not the responsibility of any financial institution. ", Quarles said in a speech in Washington reported by AFP.
While these digital currencies do not pose a major threat at their current levels, broader financial stability issues could arise if their use becomes widespread.« he added. If these currencies could not be traded against the dollar or another reference currency at a stable rate during a period of crisis," he said. it would pose major challenges to the system ", said Mr. Quarles.
Despite these warnings, several stock exchanges are considering setting up trading platforms for financial futures (derivatives) based on Bitcoin in the near future. According to the Wall Street Journal, the latest to consider this is the US electronic exchange Nasdaq. But its president, Adena Friedman, told the financial television channel CNBC on Thursday that no final decision in this direction had yet been taken. « We haven't announced anything yet ", she recalled. « Let me just say that we have an active dialogue with many clients and partners on what we can do in the long term. "she said.
In France, the Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution (ACPR), the supervisor of financial institutions, called on French savers in early December 2017 to show "... that they are willing to invest in the financial sector...". greatest care "before investing in Bitcoin, when the value of this virtual currency skyrocketed. This is due to its volatility... but also to the cybersecurity risks involved in managing a portfolio of this type.
In the face of these concerns and warnings, the fact remains that crypto-currencies and their related services such as Telcoin are on the rise. How far?

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