Dubai-based company Freedium has announced the launch of the first commodities-backed digital stable currency tracking the US dollar, Arabian Business reported.
Based on blockchain technology, the Freedium Coin will provide financing to commodity owners in emerging markets, particularly in Africa, Latin America, Asia and the Middle East.
“Emerging and developing countries have a population of 6 billion people, represent 60 percent of global GDP and generated 80 percent of global GDP growth since 2008,” said Keba Keinde, Freedium’s founder and chairman.
The company plans to start operation by the third quarter of 2018, with its first Freedium coin expected to be issued in Q4.
Freedium hopes to use blockchain technology to free emerging and developing countries from constraints such as limited access to financing, foreign exchange scarcity, volatile currencies and limited access to banking services.
"Now, the blockchain technology can enable emerging and developing countries to efficiently transact with other nations and access global financial markets,” Keba Keinde said.
The firm said it chose Dubai as an operational base because of its “well-established governance, legal and regulatory frameworks.”
By Jade Olafson