Everybody deserves access to fair, efficient, and digital financial transactions.
CuraDAI is a digital currency that leverages the latest open financial tools built on blockchain technology to create a digital, stable and transparent currency that matches the local currency of Curaçao in terms of the unit of account. CuraDAI is 100% backed by Dai, a digital currency soft-pegged to the US Dollar.
CuraDAI operates on the Ethereum blockchain. The token can be transferred in a peer 2 peer manner, with transactions costing on average $0.05 and taking about 10-15 seconds to verify. CuraDAI can serve as an addition to the local currency of Curaçao to facilitate digital trusted transactions.
The Netherlands Antillean guilder
The Netherlands Antillean guilder (Dutch: gulden) is the currency of Curaçao and Sint Maarten. On October 10th, 2010 the two islands became independent nations within The Kingdom of the Netherlands. Although independent within The Kingdom the two nations share a central bank and currency.
The Netherlands Antillean Guilder is pegged with the US dollar at a rate of $1 = ƒ1.79. This peg is maintained by the Central Bank of Curaçao and Sint Maarten by holding a proportion of US dollars in their reserve. The current minimum reserve rate is 19%(March 2020).
Downsides of the Netherlands Antillean guilder
The U.S. Dollar peg offers several benefits to the Antillean Guilder. It ensures a stable price and volume, but it also has some downsides.
Due to the Dollar peg, all international transactions need to be handled by U.S. based Correspondent Banks.
Besides adding extra costs and processing duration to the transactions, the correspondent banks can also limit the local banks in their ability to process financial transactions.
Additionally, Curaçao has no local instant clearing house, limited banking applications, and almost no access to international venture capital.
Stablecoins
With the advent of Blockchain technology, a compelling alternative to traditional currencies has arrived, the so-called Stablecoins.
Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some stable asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat currency, exchange-traded commodities or any other tokenized asset.
Examples of stablecoins are Tether (pegged to U.S. dollar via bank deposits) and Dai (created by the Maker protocol).
Dai - A Decentralized Stablecoin
Dai is a decentralized, collateral-backed digital currency soft-pegged to the US Dollar. Unlike other stablecoins that derive their value from their peg to US Dollars in a traditional bank account, Dai is backed by crypto collateral that can be verified publicly on the Ethereum Blockchain.
Dai is minted and kept stable through collateral deposits into the Maker Protocol. At the point of creating this slide deck over 115 Million Dai are in circulation.
CuraDAI - A stablecoin tailored to the local needs
CuraDAI leverages the stabilizing functionalities of Dai and the security and usability of Ethereum while tailoring to the local needs of Curaçao.
CuraDAI has the same unit of account as the local currency, is 100% backed by Dai, and enables near-instant digital p2p transactions. The CuraDAI protocol is built on open-source software and all contract, collateral, and transactions can be audited on-chain.
Due to its increased security and accessibility, CuraDAI could serve as an additional means of exchange. CuraDAI can also positively influence the export of (digital)goods and services and improve cross-border transactions.
CuraDAI - Overview
CuraDAI utilizes the latest open-source protocols and applications to create a highly secure and user-friendly digital currency.
Characteristics
Network: Ethereum
Token Standard: ERC20
Token Address: 0x0a4b2d4b48a63088e0897a3f147ba37f81a27722
Maximum Supply: Unlimited - But only mintable by locking Dai
Decimals: 18
Token Value: $0.5714
Compared to Central Bank Digital Currencies
The Caribbean region has seen many innovations in the area of Central Bank Digital Currencies (CBDCs). CBDCs can offer many improvements to the transaction speed, accessibility and security of the current banking infrastructure. However, CuraDai offers multiple advantages over the traditional CBDC, which are often permissioned and not trustless.
Low development costs by utilizing open-source software
Increased security due to limited new infrastructure and code
High-degree of transparency and resiliency
Smooth integration into new platforms due to adopted standards
Connected to and secured by Ethereum, value network with $24B value
Compared to Dai and other stablecoins
Dai, being able to maintain a soft-peg with the US Dollar, can be a good addition to any local currency or CBDC. So why not just use Dai? This stems from the belief that a currency receives its merit from being generally accepted and used. CuraDAI has multiple advantages over Dai that increase its adaptability and merit as an additional currency for Curaçao.
Utilizes the local unit of account
A local brand that tailors to the nation’s identity
A dataset that represents the CuraDAI economy
Ability to offer local token incentives
Connected to CuraDAO, a sustainable development network on the island
CuraDAI contributing to Sustainable Development
CuraDAI has a direct connection to CuraDAO, a local ecosystem that utilizes blockchain technology to power sustainable development on the island.
Every time an individual uses the CuraDAI contract, to lock Dai and mint CuraDAI, a small fee (spread between the buy & sell price) is sent directly to the CuraDAO as a contribution to the island.
Tokenomics - Minting CuraDAI
Tokenomics - Burning CuraDAI
Mint and own CuraDAI
Head over to curadai.curadao.io and connect with your Web 3.0 wallet (e.x. Metamask or Trust Wallet). Insert the amount you want to convert, approve the amount by confirming the transaction and then swap by confirming another transaction.
! This is a proof of concept version of CuraDAI, please use with caution.
Want to know more or get in touch? Contact us via curadai.curadao.io!