Liabilities of Digital Assets as a useful currency
And our proposal to solve it.
Digital assets as a currency: a step towards mass-adoption
Our core focus for cryptocurrencies has always been, and remains to be a digital replacement for cash, with the ease of use of a credit card. It is a monumental tasks, that requires strategic multi-pronged approaches to ensure compliance and subsequent adoption of the technology.
Our initial approach is engineering a simple-to-use non-custodial wallet, that uses 3 different techniques to ensure your funds are never lost, stolen or misplaced, even if one of your private keys are leaked. Read the initial proposal here:
A proposal to the European Unions new AML directive was submitted by Czechia and subsequently leaked. The proposal suggested an outright ban on all digital currency that had privacy-promoting aspects, which includes Discreet where strong privacy is the default.
In staying compliant with applicable laws (of which none exist to ban privacy cryptocurrencies right now) we’re beginning to apply for several licenses in Liechtenstein where the foundation that funds and oversees development of Discreet will be based out of. The licenses we’re filing for are the following:
Specifically, this will mean:
- Discreet, and its associated entities, will be able to operate a money remittance service that will make fiat to DIST transfers take only the local processing time of the banking infrastructure, rather than the common NET7 holding period on credit cards. Crucially, this is important for small business owners that will get access to funds sooner, and thus is able to restock physical goods quicker, or for digital startups that rely on revenue payouts for salaries.
- Allows Discreet to issue tokens above a valuation of 5 million CHF.
- Allows Discreet, and its associated entities, to build a more trustless, yet centralized fiat-accepting exchange that will make it easy for users to acquire or liquidate Discreet, as well as other reliable privacy coins with a track record (ZEC, XMR, etc.).
One of the major challenges cryptocurrencies face to make the transition from asset to currency is that of insurance. Despite having ambitions of eventually building our own centralized exchange that lists privacy-respecting currencies, we find it imperative that the user is in full control of their assets, and that there should be no single point of failure.
Today we’d like to present an overview of a solution we’ll be offering with a seperate wallet to split up private keys, meaning theft of your device, or even a written copy of your private key will not lead to loss of any of your assets.
Additionally, it adds zero latency when using an EFTPOS (credit card terminal), so using DIST with merchants should have the same, or faster, latency as your regular credit card issuer (VISA, Mastercard, American Express, Discover, etc.), however it will be cheaper for both you and the merchant, as the credit card transaction fee is often hidden in the cost of the item you’re buying (credit card fees range from 0.95%-3% depending on the risk assessment.)