A Bitcoin For Women Entrepreneurs In Brazil And Impact Investors Globally

A Bitcoin For Women Entrepreneurs In Brazil And Impact Investors Globally

Chamber Articles Category: Information Technology Post Date: 01/25/18 Source: Forbes By: Anne Field
Article Content

In the world of fintech and social entrepreneurship, the hot ticket is blockchain. An increasing number of social enterprises are turning to the technology, the underpinning of Bitcoin, as well as cryptocurrency, to create secure, accessible platforms for the poor around the world.

One of the latest entries is Moeda. The New York City-based startup, launched last year, has a micro-lending platform that uses blockchain and a cryptocurrency named MDA to connect investors to unbanked populations in emerging countries.

For now, the focus is on cooperatives in Brazil, especially on women-owned enterprises, offering interest rates of 15%. That's compared to the 120% or so they would usually have to pay other lenders, according to CEO Taynaah Reis. The cooperative structure is common in Brazil, according to Reis; enterprises encompass everything from milk production plants to yucca farms.

The current system, according to Reis, is bad for both cooperatives and investors. Many of these cooperatives, mostly located in rural areas, have a tough time getting loans, and that’s especially true for women. Generally they borrow through a government program, but the red tape and bureaucracy often prove to be impenetrable. Plus, even when they get a loan, they don’t receive technical assistance.

For investors, there’s the problem of trust in the system, especially in light of Brazil’s recent plague of corruption. Read Full Article