Volatility, some argue, is the main problem of today’s cryptocurrencies as that (among other reasons) prevents them from turning into “real money” which could be used for everyday purchases.
Some others see the same feature as an opportunity to make overnight fortunes; after all, if the price of these tokens moves frequently – it leaves room for speculation, which is how many folks have made their money.
So what, if anything, could be done about this?
Enter Jibrel and jCash
Jibrel is a decentralized protocol for storing and transacting traditional assets on the Ethereum blockchain. It has its own virtual token called jCash that provides fiat currencies in the form of ERC-20 tokens.
Said protocol was developed by Jibrel Network — a Zug, Switzerland-based startup that had the last successful ICO of 2017 — closing its hard cap a month ahead of schedule on December 27. Zug, for those who haven’t heard about it, is often referred to as “Crypto Valley” with a bunch of blockchain- and cryptocurrency-related startups, and a local government that supports their efforts.
The jCash was created to help solve fragmentation and poor accessibility of today’s cryptocurrencies; and to create a more sustainable ecosystem as it rolls out globally. It was designed as a one-to-one backed crypto-fiat alternative to the current cryptocurrency economy structure, and in the first instance – it will include U.S. dollars (USD) and South Korean Won (KRW).
The question is whether this can solve the current problem of Bitcoin and other high-value cryptocurrencies charging steep fees for small transactions?
“Yes, this is one of the problems Jibrel set out to solve,” Yazan Barghuthi, project lead at Jibrel Network, told VentureBeat. “Cryptocurrencies have unlocked tremendous benefits in the form of low-cost, high-speed cross-border transfer of value. That being said, recent market changes, high fees, extreme volatility, and the lack of regulation and compliance has rendered them obsolete for this exact purpose.”
Fiat currencies, on the other hand, don’t face similar regulatory concerns that follow cryptocurrencies. And Jibrel wants to create a middle ground with jCash, by merging the best of both worlds.
From a technical perspective, jCash is a CryptoDepository Receipt (CryDR), an asset-backed token representing real-world financial assets, which has smart regulation built-in.
This approach, according to Barghuthi, will help get the adoption of digital assets. Even better, it will first help the companies make crypto transactions with user unknowingly adopting digital assets.
“If you use a remittance or payment application, odds are you or the entity you are using is leveraging blockchain technology and cryptocurrency to facilitate low-cost, high-speed global transfers,” Barghuthi said. “This is how the ecosystem will develop — using the ‘tokens as a back-end’ model, where the token system is used to deliver a service, but the consumer behavior side remains unchanged.”
By taking this rouse, Jibrel will require minimal changes at the point of sale, and eventually lead to the wider adoption of blockchain and cryptocurrencies.
The road ahead
Jibrel is expecting to expand jCash across the globe, and include additional currencies, commodities, and bonds in the near term; each of which will be followed by a further update of Jibrel’s code and its deployment on the Ethereum blockchain.
“While decentralized, jCash tokens always remain fully KYC/AML-compliant, as well as adhering to any rules and regulations specific to a country, jurisdiction, or regulator,” Barghuthi said.
That isn’t something that can be achieved overnight, but Jibrel is confident its approach will help make the process as comfortable as possible.
“Anyone can tokenize an asset,” Barghuthi added. “The difficult part is ensuring these assets remain fully compliant, which is our core offering at the Jibrel Network.”