The developers of Fuse.io, a Tel Aviv-based fintech firm that aims to leverage DeFi (decentralized finance) infrastructure to create a platform for entrepreneurs to enable them to turn “communities into economies”, have partnered with moneri in order to bring regulated fiat money into the blockchain.
Monerium will reportedly place regulated fiat money on Fuse’s “low-fee” and “high throughput” blockchain or Distributed Ledger Technology (DLT) network so they can support micro-economies with a scalable, “frictionless” and affordable payment. solution.
As mentioned in a Fuse.io blog post, the term “Open Banking” was used to “refer broadly to the use of APIs that allow third-party developers to build applications and services around existing financial institutions; innovation in online and mobile payments “.
But through the Open Banking initiative, institutions could be “forced” to collaborate with each other while using outdated or legacy infrastructure that is “siled” and usually not compatible with the products and services that “innovators really want to build”. the Fuse.io team complaints.
With public or unlicensed and “decentralized” blockchain or DLT networks, the underlying technology becomes more accessible so that individuals and organizations can launch their services using computer code and open standards, the developers at Fuse explained. I.
Fuse.io management also noted:
“Our new partner Monerium helps clients move euros, dollars and pounds between bank accounts and their blockchain addresses. Monerium is an electronic money institution (EMI), licensed to operate in the European Economic Area (EEA) and the UK. . The platform issues asset-backed, regulated and blockchain redeemable fiat money. “
The Fuse.io team added:
“This new partnership means that entrepreneurs and community leaders who launch microeconomies on Fuse are able to use all the features that major currencies like the euro provide, including stability and acceptability, while also benefiting from the open source attributes of power of blockchain. “
Clients who can qualify for a Monerium account can get a new International Bank Account Number (IBAN) linked to a blockchain address in their preferred blockchain wallet (such as Metamask or the Fuse wallet).
As explained by the Fuse.io team, the money is issued as a “tokenized” digital currency to the blockchain address after the payment has been made and confirmed in the IBAN account. E-money is a “proven” form of digital currency that may be safer than managing bank deposits, say the developers of Fuse. They added that e-money tokens are based on the widely used ERC-20 token standard, meaning it is “natively supported by all major blockchain wallets.”
But unlike stablecoins, digital money on the blockchain is redeemable “unconditionally” at any time without requiring counterparties. The funds are “simply transferred directly to bank accounts,” explained the Fuse team.
The first pilot project will involve Wikibank, which is specifically a community launched on Fuse that offers blockchain or DLT token-based food stamps to people in need in Seville, Spain.
(Note: To find out more about this pilot program and other developments, check here.)