EGIDA "Your Own Money"

Undeserved Communities don’t have access to bank services nor credit. Therefore, they don’t have money to use as a medium of exchange. So, even if a few entrepreneurs can produce goods; their clients are unable to buy, making trading an impossible feat. 

I will establish a bank system that will use people’s word as collateral to issue IOU’s. This IOU’s will be used as currency to trade goods and services. 
Two billion poor people can use this bank to keep track of their IOU’s and the bank system can become a settlement provider to compensate debts. This way IOU’s will be mutually cancelled thus making more room for new IOU’s. 
Insurance companies can sell life insurance and debt insurance to the bank clients to back up their IOU’s. The Bank will get a commission on this insurances. The bank will charge clients a percentage fee for IOU issued or traded 

Two billion people do not have access to bank services

Poor people’s economic problems are not based in the lack of capital nor in their inaccessibility to bank credit.

Their real problem is the lack of time!

That is the reason interest rate exists. Lenders charge borrowers for the time they keep the credit issued.

Poor people tend to trust each other but when they give credit they can’t wait until debtors are able to pay. They need to buy goods immediately too! 
If poor people start giving credit to each other it will end up that everyone owes money to everyone but no one will be able to pay because they don’t have money. They couldn’t keep track of who owes to whom since it would be impossible to see the overall picture. 
People take for granted that only the government can issue Fiat Money but that is not true. Poor people can issue IOU to use it as Fiat Money but there is not a Trust Bank to keep the logs.

I will establish a bank system that can help people use their word as debt and their debt as cash. 

Fiat Money is exactly a promise to pay a debt that is issued by the government which in turn is used by people as a medium of exchange.This problem can be dodged if we use this same principle. People can issue his own debts as a promise to pay in the form of an IOU to be used as currency. 

The bank will behave as a trustee to handle this IOU’s and find coincidences where people who has each other’s IOU’s can swap said IOU's to reciprocally cancel it. 
i.e. 
If at the end of the day George has Peter’s IOU and Peter has Frank’s IOU and Frank has George’s IOU. The bank can automatically see that all IOU’s are canceled automatically. Thus leaving credit for more IOU’s to be issued. 
IOU will be guaranteed by a reciprocal guarantee system based on group cells of 100 people. 
Whoever generates the IOU is obliged to pay it. Whoever receives it as currency endorses it as guarantor 
If the one that generates it does not pay then whoever endorses it will pay it 
If these two do not pay then the remaining 98 of the group will pay 1 ninety-eight part each

My solution will serve people who do not have access to the banking system. Small entrepreneurs and workers alike. They need a banking system that they can afford to use. 

Since they do not know how money works, I try to educate them in the matter showing them that what I intent to do, they do it all the time in a small scale. 

A mother always asks for credit in the neighborhood grocery store and pays at the end of the week.

There are an estimated 500 million smallholder households globally, amounting to upwards of two billion people. Mostly small-scale farmers cultivating less than five acres, they make up a significant portion of the world's poor who live on less than $2 a day. 
This people have the ability to produce goods and services but it is hard for them to trade among themselves because they don’t have a monetary currency to be used as a medium of exchange.

They can use their word in a form of IOU as FIAT Money to trade

Poor people certainly create some sort of wealth. Some are farmers. Others manufacture goods or give some sort of service. They cannot grow because it is difficult for them to trade products and services. They don’t have money nor access to bank credit. 

Poor people don’t have access to insurance. Furthermore, they don’t even want insurance. So, when an unfortunate event takes place, they lose everything. 
Insurance companies can take advantage of this scheme, make a profit and introduce poor people to the opportunity to access several insurance options i.e. health, accidents, robbery in the near future.  

People can use their debts as currency using IOU's 

The IOU’s will never devalue or revalue since they are issued and later cancelled when they are paid. 

People can have interest free credit. 
Insurance companies can have access to a new market to sell life insurance and a new type of insurance that I call “debt insurance” In turn undeserved communities will have access to insurance policies.

Anyone who is honest and is accepted by their peers as an honest person can have credit or issue credit. No other prerequisites are needed. No collaterals. Just your word.

I will use a simple app to keep logs of all transactions.

My system has nothing to do with cryptocurrency but I will use a similar system to develop the idea.

I will develop a bank system that will based in IOU’s which will be used as money. The bank will keep track of who issued the IOU, who endorsed it and who owns it. In addition, it will behave as a settlement provider amongst IOU holders allowing mutual setelment of coincidental IOU’s.  

I give marginalized communities access to a medium of exchange system (IOU’s) to facilitate trade of goods and services amongst themselves.  
This bank will give underserved communities access to a system that will act as a good father of a family. Through trusting the system people will trust themselves and will be able to trade goods and services. 
 
Tontines is an example of people in Benin and Dakar trying to trust each other to save money. Tontines in Dakar Tontines in Africa (Spanish) Youtube Video

I intent to take advantage of this commomn trust to go one step further since with tontines people only try to save some money by putting it in the hands of someone they trust.

I serve no one currently since this is just a concept

I expect to to serve at least one million people in Brasil and one million people in Mexico within the first year.

I expect to serve at least five million people in Brasil and five million people in Mexico within five years.

Next year.

Develop the necessary software solutions. I need to hire a team of software engineers.

Partner with banks and insurance companies. Small community banks are best suited but I need big insurance companies to back me up with the insurance needed.

Start the bank in Mexico, Colombia and Brazil. This countries have large undeserved populations. Mexico and Brazil have around forty millions each and Colombia around twelve millions.

Five years

I want to grow in Africa, USA and Europe.

Financial.

I live in Venezuela. I lost all my business and I am broke right now.

Technical.

I do not know how to code an app.

Legal.

I am not sure this idea can be developed legally in The USA. The US Treasury, The Federal Reserve Bank System and the same US Banks may not like it. There is probably not a clear regulation for this.

Mexico, Brazil and Colombian regulations and laws are more permissive on this matter. Basically what is not explicitly forbidden is therefore allowed.

Financially. I intent to get grants from the insurance companies. I am confident I can convince them that they will benefit with this idea since the will have a new market to sell insurance policies.

After developing the app I will start first in Mexico and then in Brazil. 

This idea is a concept and I am working alone

I graduated B. Sc. in business administration at La Salle University in Philadelphia Class 86 My La Salle I.D. 0139297.

I returned to Venezuela and started my own business. I sold tires to transportation companies and I worked as a consultant. I helped microentrepreneurs start their own business. I did it pro bono. I lost all my business in Venezuela.

I have been poor and I have been rich. I have learned that I always needed someone help in the form of credit to succeed in any projets that I undertook.

I do not have expertise with large organizations but I do have an intense desire to help people get out of poverty because I have been there.

Poor people want to have access to cash, bank accounts and bank credit. 

I give people access to bank services, a bank account, cash and interest free credit at the cost of a flat fee. 
This will be done through an app since the bank needs very few offices. 
I will give insurance companies the opportunity to target a new markets where they can sell insurance contracts. Poor people don’t want nor need insurance. They don’t see any advantages to getting insurance but with this bank they will need an insurance in order to have access to this bank services. 
I will charge insurance companies a commission on every insurance contract that is issued to the bank clients.  
People can buy in the bank offices IOU’s at a discount using cash. This “cash IOU’s” will be used to buy goods. The bank clients will use this IOU’s to pay their own IOU’s credit that they owe to the bank due to bank fees. 

In the beginning I need grants from insurance companies.  I believe they will help since they can profit from this project. 

Later on, I will charge this insurance company a commission on every insurance that this company will sell to the bank clients.  
I will charge a 15% fee for each IOU that is issued by the bank clients. 
I will also charge a small fee 1% on each transaction that the clients make within the bank system.  

Basically I need to contact Insurance Companies that will benefit from the new insurance market that my idea will develop. Two billion people do not have access to bank services. if this undeserved people want to benefit from my idea they need to purchase life insurance. I believe that this companies will be willing to give grants to this project.

I also need to contact and hire good software engineers.

I need to get licences in the USA and other countries like Mexico, Brazil and Colombia to start this business.

I will like to get advise from someone who has knowledge on game theory. He will help me understand how undeserved population might behave using this app.

I am willing to give equity but I would like to keep control of the company

I would like to partner with Warren Buffett through his insurance companies. In order to give reassurance to poor people it is a good idea for people to get a Life Insurance to back up their debts when they die and in addition, they need a ‘Debt Insurance’ just in case someone is unable or is unwilling to pay. The insurance company will pay 40% of the default and the 98 people who backed up that debt will pay the remaining 60%. Those who commit a fraud will be expelled from the bank forever. The bank will get a commission on each insurance placed. 

I will like to partner with Dr. Phil Thompson and his course team “Just Money: Banking as if Society Mattered" I need banks to back up this project. 

Refugee usually know how to produce goods or give some service. This bank can help them work together to finance each other.

My idea is based solely on trust.

Unfortunately:

Men do not trust men

Men do not trust women 

Women do not trust men

BUT

Women DO trust other women.

I want to start my bank only with women as clients to get a head start.

After that if men want to jump in they need to gain women´s trust.

My solution does not help to build skills but it does help get the resources people need to work on their own. Working on your own is a way to get a job and to give other people a job. People who work on their own usually need workers and these workers will learn new skills.