Economists estimate that the weight of the global financial economy today is 70 times that of the real economy. This means that majority of our money are spent in a trading economy that does not generate actual production. impak Finance, a Canadian startup, seeks to use the power of finance to generate positive social impacts.
Source: Invest It In
At the heart of it is the impact ecosystem, impak.eco, where citizens, businesses and investors are in agreement that each dollar spent will go towards generating positive impacts for both the environment and society. The platform is designed to bring together individuals in different capacities who share the same values and facilitate interaction between the groups of stakeholders:
Browse qualified impact businesses
Purchase responsibly and support organisations which share their values
Use and be rewarded with impak Coins
Access to capital - through increased sales or investments
Support from the community through increased visibility towards citizens and investors that are committed to improving the world in a similar way
Businesses on the impak.eco network have to first undergo a qualification process, after which they will be able to disclose which of the United Nations’ Sustainable Development Goals it aims to address, and their plans toward reaching that target.
The impak.eco social network will be complemented by the impak Coin, impak Capital activities and the future impak Bank.
Designed using blockchain technology, the impak Coin (MPK) is the first ever Initial Coin Offering (ICO) that has the official endorsement of Canadian financial regulators. Though initially backed by the Canadian dollar, the price of impak Coin will eventually be established quarterly through transaction volumes on impak.eco.
According to Paul Allard, CEO of impak Finance, “It is up to communities to decide how to manage a currency, it is not only for the government to device.” In contrast to banks who create fiat money (money that has no intrinsic value as it is not backed by a physical commodity) each time they issue debt, impak Coin is created each time a Citizen transacts with an impak.eco network merchant, thus creating wealth in the network. It is launched with the aim of reducing the power of big banks in determining how money is created. Hence, as an international digital currency, impak Coin never expires nor appreciates in value.
impak Coin users will be able to capitalise on the advantages of cryptocurrencies, such as ease of transaction and zero transaction fees in more than 500 businesses who have signed up to accept this new currency. The Coin also features incentives built into it, including referral and cash-back bonuses. While users will be able to exchange it for traditional money that will be credited into their accounts, this MPK to Canadian dollars conversion is disincentivised through the 2% fee levied. This helps to keep the wealth generated within the impact investing ecosystem, increasing the multiplier effect generated when citizens purchase through impact.eco or when investors invest in impak.eco merchants and building a stronger impact economy.
Unlike other token offerings, the impak coin will not be tradable on digital asset exchanges, and instead will be tradable on a permissioned market managed by impak Finance. impak Finance will also be keeping 40% of the money invested in the impak Coin as reserves, for when users want to exchange it for traditional money. Up till date, 1.6 million MPK has been issued, an equivalent of CAD$1.3 million.
Supports Canadian impact organisations dedicated to make an impact in the world, by providing them the funds they need to do so.
Inspired by Triodos Bank, a banking institution of the Netherlands and the UK, a banking institution that has great success in sustainable finance, impak Bank will be entirely dedicated to the impact economy, with 100% of its loans made to companies that generate a positive social impact on society and on the environment.
An innovative idea of creating an impact ecosystem, coupled with the newest blockchain technologies and a cohesive structure where the different branches complement each other and lend their support in strengthening the ecosystem, this project put forth by impak Finance is truly something that investors, businesses and the public alike should keep a keen eye out for.
1) impak Finance https://www.impakfinance.com/home/
2) Canada has its first approved cryptocurrency https://www.itworldcanada.com/article/canada-has-its-first-approved-cryptocurrency/395922
3) Impak Finance: A bank project powering a social investment ecosystem https://www.investitin.com/impak-finance/
4) Growing a New Economy: meet impak Finance http://purposecap.com/meet-impak-finance/