Dreamcoin

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Dreamcoin is a community cryptocurrency for merchants and consumers in sub-Saharan Africa. Its creator, Phillip Agyei Asare, said: "Dreamcoin is a purely African initiative, unlike Kipochi which was backed by Danes, and BitPesa that is backed by Americans and Britons. Dreamcoin partners are in Ghana, my home country, as well as members from Botswana, Uganda, and most recently Sierra Leone. This is a powerful and meaningful achievement, given that Dreamcoin, therefore—even in its early stages—represents broader ethnic and linguistic diversity within its core Dreamcoin community, than that of Western Europe or the Americas."[1]

The currency is backed by commitments from participating merchants to accept Dreamcoins at a fixed value, which will be a "function of initially expressed and identified interests". It is an implementation of the non-profit organization Conscious Entrepreneurship Foundation (CEF)’s Coins for Causes initiative. CEF's founder, Charles Evans, explained: "The idea is to use something like Counterparty to issue vouchers that can be redeemed for, e.g., $1 worth of goods and services from participating merchants. A supporter could raise an endowment fund and stand ready to buy the vouchers, in order to put a floor under their value. For example, if you knew that someone would buy the things from you at $1 each, you might be more inclined to hold them, and you more or less would be able to predict their value in the near future. DreamCoin is slightly different in that the initial supporters do not have thousands of dollars in cash sitting around, but each member of the core group of supporters is willing to give away some goods and services in exchange for the vouchers, in the hope that this will make them attractive to prospective users and enable them to bootstrap a market in them."[1]

References

  1. 1.0 1.1 Dreamcoin: Africa’s New Hope by Kevin Cruz, Bitcoin Magazine. Retrieved September 29, 2014.