Issue 2, 2018. April-May

   

INNOVATORS AND DISRUPTORS: IDEAS TO BRING CHANGE

Investor.ge is starting a new column on the entrepreneurs pushing Georgia's development forward. For the first interview, our spoke with Sean Mulcahey about Spotcoin's plans to use blockchain technology to help vulnerable Georgians.

Spotcoin is a Georgian player in the international world of cryptocurrency and blockchain, a technology that digitally records transactions on a distributed ledger.

The company started with five employees in October 2017 and has now grown to 27. It is preparing for first offering in May and is already operating: over the past year it provided over the counter trades- exchanges between cryptocurrencies and other currencies-worth around $10 million

Sean Mulcahey, Spotcoin's Chief Strategy Officer, is passionate about using blockchain and digital currency to solve an old, persistent problem- bringing financial and banking services to those who need them the most, but cannot afford or have easy access to them.

Transparent and Affordable

Blockchain, which he explained as a distributed digital ledger that records transactions on multiple servers around the world, makes the layers of financial services that have been created to verify transactions unnecessary. Trust and transparency are embedded in blockchain technology. This makes it 'extremely efficient; it makes it a trusted way of doing business, and therefore it makes it much more affordable,' he told Investor.ge.

'You won't likely find any bank that is willing to give a loan to someone for say 10 dollars. It is just not economically feasible for a bank to do that because it costs money for the bank to do the services that they currently provide,' he added. In the case of digital currencies and financial services on blockchain, however, there are a 'number of things that are very valuable for those who are currently unbanked or without an account in a financial institution.'

For starters, with blockchain it is possible to do financial transactions in very minute amounts, he said. 'We are talking about fractions of a penny, fractions of a tetri and actually being able to transact at that level without costing an enormous amount of money,' Mulcahey said.

'Basically it changes the playing field, particularly for those who are on the lower end of the economic spectrum ... maybe they could actually use a very small amount of money to improve their economic position, whether it is to purchase a piece of equipment or to purchase supplies to make something. Whatever the case is, under the current and previous system it is not even within the realm of possibility for them to really engage in the financial system so I see this as an extremely positive development really for millions and millions of people,' he said.

Spotcoin's aim is to create solutions for the new smart economy that make it simple, effective, and safe for people to engage in economic activity by moving between digital and fiat currencies.

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