The internet and the digital era we live in has changed every aspect of our lives. Technology has become effortlessly accessible, therefore the line between the real world and the online world is sooner or later going to disappear for good.
The millennial generation has been the first generation to be completely brought up in the digital sphere, and the way technology innovation or progress takes place is completely dictated by the ‘baby-boomers’.
Financial services have hit a stagnation period, with a greater demand for physical cash to be replaced by a digital currency. The demand for new currencies that erase high-cost fees and intermediaries has risen tenfold.
The Beginning of Colu
Colu seeks to create a localized, community-based currency that benefits both the seller and the buyer. This can increase profitability and can act as a catalyst for growth spurts in localized infrastructure and social welfare.
Mark Smargon, VP of blockchain and co-founder of Colu, said in an interview with VentureBeat:
“The payments landscape is moving faster than people notice. There are already some places in the world where cash is becoming extinct,”
“Ironically, this change is happening much faster in developing countries in Africa and Asia, which leapfrogged PCs and landed straight into mobile with a speedy adoption of digital methods of payment.”
Colu operates as a digital wallet app that allows a community to own hyperlocal currencies. This creates an inward approach for customers to source or purchase products in their local economy. A local currency greatly reduces the need for transaction fees or any other fee-deduction that may occur.
Keeping the money circulating inside the community facilitates growth. Currently, people shop or purchase products from MNCs such as Starbucks or other big retail franchises. The money that people spend here doesn’t stay within the community but instantly sent to shareholders, and even perhaps overseas. The Colu Network has sought to reverse this very model.
CLN tokens seeks to include currency exchange, payments, and lending services, therefore connecting a local economy to a global network.
Smargon continue to say:
“Blockchain introduces new business models for payments, where instead of one company having all of the control, it allows us to experiment with new types of governance, compliance, and new flavors of privacy which will be important, as cash will be making its way out of our society,”
“Colu is effectively positioned to understand those changes and tackle these changes on a large scale — a scale we saw last during the introduction of mobile phones and social networks. We think that the democratization of trust and access to digital financial assets will leave a huge mark on society, and we plan to understand and bridge the gap between this new technology and end consumers and their financial needs.”
The contributors to the company include Spark Capital, Aleph VC, Tom Glocer (former CEO of Thomson Reuters), and renowned behavioral economics expert Professor Dan Ariely, who will also join Colu as the company’s chief behavioral officer. Also joining the group as an adviser is Bradley Tusk, a serial entrepreneur and Uber’s political strategist.
Below is a video of Dan Ariely talking about the power of Colu: