Economic stabilization through a new currency revolution: PAX PAGO
While blockchain empowered digital currencies are far from mature, their disruption of the current financial system is inevitable. Cryptocurrencies are creating a money revolution. By making some intermediary functions redundant, they call into question the paradigm of traditional fiat currencies and the role of central banks and financial institutions. However, central banks and other influential financial sector players around the globe can certainly play a major role in shaping this landscape. In response to this new paradigm, central banks and financial institutions are experimenting with, and prototyping their own cryptocurrencies.
Many people believe that central banks that act now can help shape the role that cryptocurrencies will play in the economy. A central bank-issued cryptocurrency can support the bank’s mandate of maintaining economic stability, protecting the consumer and controlling money supply. But to take this step, central banks will need to evolve beyond their traditional roles. A central bank can issue fiat currency on the blockchain in the same way it issues fiat currency as physical cash.
The current cryptocurrency market is highly competitive and fragmented. The market fragmentation is further compounded by traditional fiat currencies (for example the Dollar, Euro, Pound, Yen etc.) which compete directly in this space. Despite the expectations of current cryptocurrency users, market proponents suggest that a wide and large scale acceptance of these cryptographic based digital currencies can be difficult to achieve. The counterargument is that many traditional fiat currencies exist and each plays a vital role within the global economy.
Given the success of Bitcoin and other cryptocurrencies that are gaining prominence, it would be a mistake to conclude that consumers, consortiums or large financial institutions would not be successful in launching cryptocurrencies. However, Accenture believes that a cryptocurrency’s chances of success are much higher if launched by a central bank. A central bank can bring market participants together and create a governance structure in which cryptocurrencies can thrive and gain much wider acceptance. With central bank support, there are also a myriad of other advantages for the economy. Cryptocurrencies are borderless, and central banks that act now increase the attractiveness of their fiat currency as a medium of exchange in payments, clearing and settlement
To sustain and further project development efforts, small processing transactional fees may incur within the PAX Pago ecosystem. To fuel the longevity of the PAX Pago, the reserve total supply token will be used to locate the project into other adjacent geographies. The end goal is to target developing countries with limited exposure to technology, and transform them into Smart Countries. All Smart Countries will be powered and connected cross bordered by the underlying PAX Pago ecosystem.
PAX Pago will be a borderless payment and settlement platform. The project provides transparent transactions and will be a medium of stability in the event of economic turmoil. Independent from economic cycles, the project builds an ecosystem supporting the trading of goods and services.
As the platform progresses, there will be features introduced to further develop the overall growth of the ecosystem such as: Validation System, Point System. Currently, the platform has several existing core functions with the capacity to grow.