Evolutionary Mutation in Blockchain?

HanseCoin welcomes Facebook’s Libra into the fold. It is significant that a major company such as Facebook is minting its own coin as they…

By Dr. Chris Kacher of Hanse Digital Access on ALTCOIN MAGAZINE

HanseCoin welcomes Facebook’s Libra into the fold. It is significant that a major company such as Facebook is minting its own coin as they aim to help take crypto mainstream. That said, the thin, much-to-be-desired Facebook Libra whitepaper calls into question, “Does Facebook really know what it’s doing?” The company has faced two years of intense scrutiny over the impact of foreign interference and poor privacy practices. Facebook which attracts an audience of some 2.4 billion hopes Libra, which is backed by companies including Visa, Mastercard, and PayPal, will appeal to the 1.7 billion adults who do not have access to a traditional bank or people suffering from a loss of savings due to depreciating or volatile local currencies in their home countries. It could be used to make payments between friends or family at no or low costs through the firm’s wholly-owned apps WhatsApp and Messenger.

Facebook has already been experimenting with payments through WhatsApp in India and recently shut down P2P payments through Messenger in the UK zeroing out credit card transaction fees thus, could also offer a cheaper way to pay online merchants. Indeed, the cryptocurrency may be a new era of commerce and payments for the social networking giant.

HanseCoin is agnostic thus will be able to interact with Facebook’s Libra as well as with other major companies who will inevitably be producing their own coins. The involvement of major financial firms like Visa and Mastercard with Facebook’s Libra make sense as the CEO of Boerse Stuttgart said at the blockchain conference in Frankfurt that any institution that does not onboard blockchain technology will get left behind. Indeed, Boerse Stuttgart is one of the first major exchanges to make this transition and plans to list the first tokenized securities made available by HanseCoin.

HanseCoin remains steps ahead in terms of establishing itself as a company that is deeply connected not just to the blockchain space but also to established institutions, thus its initial use case tokens are unaffected by the direction of bitcoin and other cryptocurrencies since their value is pegged to the euro and the underlying use case it owns, a multi-million euro property 15 from the city center of Tallinn.

High Barriers = Little Competition

HanseCoin is the first compliant company to tokenize hard assets on the blockchain. Blockchain technology enables HanseCoin to dramatically reduce front and back end costs while eliminating “middle men” redundancies. The barrier to entry is very high thus HanseCoin currently faces little competition. What makes this barrier so high? First, Estonia is the only country in the EU that has made the greatest advancements in regulatory law with such directives as MLD5. This was a primary reason why HanseCoin decided to headquarter in Tallinn, Estonia. Under regulatory law, HanseCoin’s platform is passportable into 17 different countries in the EU. Most companies attempting this in the cryptospace are not compliant. Second, HanseCoin owns an underlying use case worth a few million EUR that is fully permitted, shovel ready property. This was the key ingredient in getting the head of regulation in Estonia to give HanseCoin the green light. Third, the family of Axel Jacob, one of the co-founders, has been deeply connected in this area for generations thus understands the dynamics of securing the best deals and contracts from the ground up.

EUR 250+ Million Lift Off

As a consequence, numerous companies have approached HanseCoin for tokenization on the ATP (Asset Tokenization Platform). HanseCoin has narrowed the initial list down to about 55 companies with a total volume worth north of a quarter billion EUR. But that’s just the ice cube on the iceberg. The disruptive potential of HanseCoin is in the trillions as the space is beyond massive. As the former CEO of NASDAQ has said, in 5 years, all stocks will be tokenized. The same will eventually apply to other hard assets including real estate.

Should HanseCoin secure even 1% of the market or a fraction thereof, the numbers speak for themselves. But as stated above, HanseCoin has its sights on something beyond just a thin slice of the market. Given its first mover advantage and positioning, it aims to further its lead in the coming months as it secures relationships with other major platforms.

Facebook’s Libra + HanseCoin’s ATP Transformative

But just as with HanseCoin’s ATP, Facebook’s Libra may be transformative as it will attempt to bring crypto to the masses much as Mosaic then Netscape then AOL brought the internet to the masses. Through their platform, Facebook’s Calibra will develop a wallet for every user. That means in approximately one year, about one-third of the world’s population may have their very own digital wallet IF they trust that Calibra will not share their data nor be data mined. Europeans as a rule are highly skeptical. Facebook faces headwinds on this point as well as from regulators though is trying to make progress on both fronts. Whether successful or not, it is more significant that a company such as Facebook will now pave the way for many other major companies to join the blockchain space as it turbo boosts evolution and adoption.

HanseCoin intends to ride this tidal wave while pushing blockchain forward by bringing tokenized securities to the masses for investment. Previously illiquid entities are now made liquid via tokenization where small retail investors can participate. That said, no company at present except for HanseCoin is focused on the tens of billions of EUR left up for grabs in the EU due to onerous MiFID regulations which choked off the closed end fund market for construction equity as well as the massive retail market which is looking for a low risk/high reward investment.

HanseCoin stands at the ready. It is time to launch.