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What is insured money?

By using a design that comports to regulations, our solution allows existing companies and payment systems to seamlessly use our product.


One aspect of crypto-currency that is not often discussed is who is backing the currency and the thousands of corollary issues that follow this question. In fact, crypto has no backing other than the faith and trust one has in the exchanges and issuers. Hybrid Crypto is coming out and these companies are attempting to create solutions for part of this problem but, so far, none have addressed the questions comprehensively or even had honest discussions about the issues. Private issuers abound in the physical world: travelers checks, irrevocable letters of credit, bonds, titles with title insurance, certified checks, and so on. We are creating a digital framework for implementing any of these types of transactions and more. In fact, this issue must be dealt with as regulators start to focus on what cryptocurrency is and what it is not.

Some of the bigger questions are:

1. Who guarantees or supports the value of the Cryptocurrency?

2. What limits of guarantee exist?

3. Are there regulations that protect you from fraud or manipulation?

4. What happens if the relevant software fails?

5. What happens if your Crypto is stolen?

6. Is there a basic value associated with the currency, like denomination in Gold?

7. Is there a basic redemption process or can it only be used in trade or sold on exchanges?

8. What happens if the Cryptography or keys are broken?

9. What if your Crypto is a counterfeit?

10. What happens if your blockchain was used in an illegal transaction?

11. Can your ability to trade, sell or transport your Crypto be stopped?

12. Is your Crypto anonymous like cash?

13. Are there any warranties on anything in the Crypto eco-system?

14. Is the Crypto fiat, speculative or asset based?

15. Does anyone insure against any of the events inferred above?

We can keep going for pages, but the fact is that Cryptocurrency advocates have done little to resolve these fundamental issues, although a lot of hollow words have been put on paper.


A crypto value token that:

1. Is tied to material assets,

2. Insured against normal event risk, and

3. Is fully compliant with local regulations.


The defects in current crypto offerings are easily addressed by seamlessly interacting with current formats for value exchange, which our system does. This also solves the issue of regulatory authorization because it fits under existing rules. Existing Crypto companies wave technology magic in front of their accolytes when justifying their systems, but it is the legal frameworks that will enable these systems to work effectively at scale. Since comprehensive Cryptocurrency regulations have yet to be written, it is imperative for the Crypto to be a digital surrogate for something already allowed under the law. By using a design that comports to regulations, our solution allows existing companies and payment systems to seamlessly use our product. And, because it is a known legal instrument and structure, it will be able to be insured, escrowed, bonded and handled the same way physical payments are handled today. It will also be able to be tied to crypto-bound documents associated with such transactions. All of this can be accomplished within existing commercial frameworks without exposing the user to the geopolitical risk associated with existing and planned alternative cryptocurrencies.

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