More than two-thirds of UK SMEs trading in foreign currencies say that they have been financially disadvantaged due to currency volatility sparked by the Brexit vote. [i]Additionally, businesses and investors are scrambling to protect themselves against a plunge in the value of the pound if Britain crashes out of the EU in March assterling’s “fear gauge” — a closely watched measure of the cost of hedging against big declines in the currency — has climbed sharply in recent weeks.[ii]Dramatic currency volatility is a cause of concern around the world and has left people at the mercy of central banking policies and political instability.
Against this backdrop, the evolution of blockchain and cryptocurrencies opened up new opportunities to ensure decentralisation and stability. However, current blockchain payment systems and their cryptocurrencies have suffered from severe price volatility, limiting their holder’s desire to be used as tender. Four years of volatility in the stock market can be covered in a month of pricing movements in the cryptocurrency markets.[iii] A large part of this is owing to its lack of intrinsic value. They generally don’t return dividends and just a tiny amount of the total value of the currency goes into evolving it.
The current need is a secure, efficient, and fair monetary system; a system that combines the age-old stability of gold and silver with the efficiency of transactions on the blockchain.
The Kinesis Monetary System is specifically designed to overcome these drawbacks through the development of a universally adopted, decentralised, asset-backed monetary system.
This system combines new world decentralised technology with the oldest, fairest, and most sustainable form of money to empower all participants to be their own central bank.
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Kinesis is a reliable currency system based directly on two of the most stable commodities on earth. When you buy the , you instantly purchase real gold or silver through a 1:1 allocation system. This is secured in vaults around the world, free of charge. Your ownership of the gold is then digitised using blockchain technology, meaning you can hold or transfer your currency from the Kinesis digital wallet, spend the currencies easily using a debit card anywhereVisa/Mastercard is accepted, or trade them on them on the Kinesis Blockchain Exchange. Your holding can even be transferred back to physical gold or silver.
Being born out of the Allocated Bullion Exchange(ABX) adds another layer of stability to Kinesis and differentiates it from other gold-backed cryptocurrencies. ABX is a leading institutional online exchange platform for physical precious metals, with deep expertise in the gold industry. ABX is integrated with Deutsche Borse’s clearing house and already has extensive infrastructure and fully operational exchange technology for trade and storage of physical bullion in 7 locations around the world. All bullion has a verified audit trail with multi-layered third-party audit and verification in place. ABXis regularly audited and has a transparent holdings system. Kinesis utilises the multi-layered third-party audit and verification system of ABX’s Quality Assurance Framework to ensure quality assurance and fraud prevention, increasing the reliability of the currency.
While working to overcome volatility, Kinesis also defies Gresham’s law to ensure constant movement within the system. People who value one currency over another will hoard the more valued tender, while spending the currency they value less. Similarly, given cryptocurrency’s market volatility, it is often a crypto-holder’s view that their crypto-assets will rise in value or that they must hold on to them to wait for prices to recover. As a result, there is no incentive for that token to be used as a medium of exchange, thus promoting hoarding behaviour.Kinesis embraces and rewards the use of its own currency, stimulating the movement of capital, acting as a system that encourages commerce and economic activity. This is done through attaching a unique multifaceted yield system that promotes exchange and fairly shares the wealth generated by the Kinesis Monetary System according to participation and capital velocity.
The mission of the Kinesis monetary system is to deliver an internationally fungible monetary system, designed to give back to those who participate, and thus create a solution for the global need for sound, reliable money. Given the Kinesis Monetary System’s stability and security, participating in the Kinesis system is inherently less risky than these alternative markets and offers greater return.