While a host of coins are flooding the cryptocurrency industry, there is still no adequate solution for measuring, storing, and transferring value in real-world use cases. This is why the Mile Unity Foundation is supporting the development of the XDR stable currency based on the International Monetary Fund (IMF) Special Drawing Right (SDR), a unity of account which has only experienced an 11% price change in over 35 years. The SDR is tied to a basket of the world’s most important currencies, which, at the current time, include the US Dollar, British Pound, Euro, Chinese Yuan, and Japanese Yen.
Failures of Currency Options
As much as fiat currencies have solved problems of previous generations, they are failing when it comes to transferring value across borders with little to no fees, exhibiting price stability, and allowing for fast transactions.
Not only are fiat currencies failing in this way but cryptocurrencies have yet to solve these problems as well. The price of bitcoin fluctuates in ways which make it unusable as a true stable currency, and stable-coin solutions such as Tether (USDT) are directly tied to centralized fiat storage, and therefore completely dependent on central banks and government entities.
This has created the need for a new currency to maintain a stable price, low transaction fees, and complete transparency and decentralization to allow users to send any amount of value across the globe with no added fees.
Enter Mile, a project aimed at solving problems inherent in both the fiat and cryptocurrency industries. Mile can be used for:
Free International Payments
In the current banking system, the only way to transfer more than $5,000 in value across borders is utilizing SWIFT which brings with it at least a 1% commission fee and several days of waiting time. MILE allows for the transfer of any amount of value across borders instantaneously.
It has been proven time and again that storing value in the form of cash under your mattress or in a safety deposit box in a bank are not necessarily the safest methods. With XDR, you can securely store value on a decentralized network with no counterparty or censorship risk.
International Cooperative Economy
Countries such as Turkey and Venezuela are experiencing political and economic upheaval which have left citizens uncertain about the value of their local currencies. Allowing these individuals access to a cooperative economy presents them with the opportunity for growth.
The Mile Economy
To fulfill these use cases, Mile utilizes a two-coin economic model which supports its ecosystem. The XDR Stablecoin has a stable price and is excellent for a store of value or transfer of assets with little to no price slippage or transaction fees. XDR is resistant to price manipulation because it has more use in real life than via exchange trading, meaning, in the event of any price slippage, XDR will be purchased in the dip quickly so the price will recover almost instantaneously.
Meanwhile, the MILE Demand Index Token will rise in price as XDR rises in demand. Working in conjunction, XDR has a growing supply and a stable price, while MILE has a stable supply and growing price based on the demand of XDR.
With an already working web-wallet and an iOS app in the works, the Mile Unity Foundation is on its way to offering the solution to cross-border transactions with a stable currency that the cryptocurrency industry has been searching for.
Dan is a freelance cryptocurrency and blockchain content writer. He has written content for startups, ICOs, financial planners, venture capital firms, and more. Previously he founded an e-commerce company that grew to $1 million in revenue and profitability in less than 3 years. Dan has a degree in Economics and Finance from Bentley University.