The most recent potential nominee to the Federal Reserve, Marvin Goodfriend, is in favor of negative interest rates. In simple terms, if a retiree kept cash in a savings account, that money would slowly dwindle as negative interest rates ate into the principle.

This type of scenario is not as far fetched as it may seem. Such a policy is possible among major government powers because central banks allow for arbitrary interest rate manipulation.

What’s more, with central bank interest rates at zero or just above zero, the risk of inflation has risen to an all time high. Such inflation would further erode savings and devalue most major fiat currencies in the world.

Additionally, transactions with fiat currencies are riddled with high fees, middlemen, long wait times and slow processing. The problem is real.

Currency solutions

While the current cryptocurrency market provides some solutions, such as increased liquidity and the potential for inflation control and fee reduction, consumers are not wholly convinced. For a solution to truly be viable, it must incorporate fiat currency as well.

The X8currency platform has created a currency solution that will truly solve all of these issues in a single system. After 10 years of platform development, the X8 team has released the X8C ERC-20 token.

The scientific basis for the token is founded on the concept of diversification, making it possible for contributors to the X8currency to diversify their investment into a wide array of fiat currency (USD, JPY, GBP, EUR, CAD, AUD, CHF, NZD) and monetary gold holdings. When an investor initiates a purchase, those funds are included as part of the large reserves held by the X8currency platform.

By diversifying into a number of currencies and gold, X8currency creates an automatic hedge against fluctuations in any single currency or precious metal.

This diversification process is optimized by the Automatic Reserve Management AI technology – a proprietary artificial intelligence system – which chooses the best possible array of fiat and gold in order to provide liquidity and stability for investor funds.

Internal functionality

To protect users from risky legal concerns regarding securities laws, the X8currency team has created a dual token structure. The X8C token is linked directly to the reserves deposits within the platform. This makes it the central token within the marketplace, as it is created any time an investor moves funds into the X8currency platform.

The parallel token, X8X, is a utility token, designed as a gatekeeper token that requires users to pass through customary KYC (know your customer) verification before accessing the X8C tokens. Investors must hold X8X tokens in order to be eligible to purchase X8C tokens.

The system is designed to bridge between the crypto and fiat worlds, and is engineered to Swiss financial standards. For more information, check out the X8currency blog, or read their carefully crafted whitepaper.

By building a unique link between the crypto and fiat worlds, and providing controlled hedge diversification structure, X8currency has created a method for protecting the cash assets of more than 3.5 bln people within the scope of the world’s top eight currencies. The impacts of inflation, interest rate manipulation and arbitrary central bank control can be mitigated or eliminated through the X8currency platform.

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