In our last article we introduced Everex and the reasons we exist. We want to transform the world economy by giving everyone equal access to the global financial system.

Cryptocash is the foundation of this plan. Let’s go into some more depth about cryptocash and how businesses and individuals will use it to send money like never before.

Put simply, it is any existing national currency, digitized on the Ethereum blockchain. For example, One cryptoUSD (USDEX) is equivalent in value to $1 USD, always.

H ow is Currency Pegged to the Blockchain?

Everex partners with licensed financial institutions that provide the infrastructure for cryptocash issuance and distribution. These include commercial and investment banks, insurance companies, brokerage houses, and other financial players. Any underlying reserve amount held in one of these accounts is underwritten by the respective institution, and can be verified and audited to prove it exists.

We then use the technology we’ve developed to create equivalent currency units (cryptocash) on Ethereum, the global smart contracts enabled blockchain. Cryptocash can be sent almost instantly anywhere in the world and confirmed by Ethereum miners.

In the future, using EverEx exchange, users will swap one currency for another directly with each other easily, meaning (for example) a customer in Thailand could use their cryptobaht (THBEX) to buy a product from a company in Japan — which can receive the amount in its local currency equivalent, cryptoyen (JPYEX). The process, including the currency conversion, is seamless and nearly-instant.

To put it another way, it’s like PayPal… without the PayPal!

How Do Users Trade In and Out of Cryptocash?

Everex is creating the environment where anyone may walk into a currency exchanger, bank branch or other authorized agent, and hand over cash in exchange for the equivalent amount in cryptocash. This is similar to a traveler’s check purchase — only the exchange agent will transfer cryptocash to the user wallet with the Everex transfer app, instead of handling a paper check.

We’re already working with banks, and have received lots of interest from FX brokerages and money transfer organizations (MTOs) about becoming cryptocash issuers/underwriters.

These agents may set their fees to provide this service. They are able to set their respective conditions and compete with each other in an open market.

To trade back into regular cash, the process is the same.

Ultimately, we expect people won’t trade back into cash. Like other financial technology, this will take some getting used to. Back in the 1990s, people didn’t feel comfortable giving their credit card numbers to online retailers, or leaving large balances on payment processor accounts like PayPal and OKPay. Less than 20 years later, they realize it’s much easier to just leave their money (and account information) online so they can send it anywhere, anytime, in any currency. Cryptocash is actually far more secure than that.

What Cryptocash Isn’t

Firstly, it’s not for buying a coffee at Starbucks. Local businesses are free to accept cryptocash if they want, but we’ve designed this more for online and cross-border payments. It’s for B2B payments by SMEs, international crowdfunding campaigns, or international remittances.

Secondly, cryptocash units are worth exactly what their corresponding national currency is worth. Apart from fluctuating against each other as national currencies do every day, the value is pegged. You won’t see the kind of wild price volatility you see with cryptocurrencies like bitcoin and Ethereum’s ether.

Cryptocash is not a new currency, it’s the new form of currency that users already know and trust, by its name and value. Like a brand, almost. It also needs to be easy to use — easy to set up a wallet, easy to spend.

Where Cryptocash is Applied

The primary applications would be global remittances and online payments. However, we see cryptocash as a part of a much bigger picture. With cryptocash issued and circulated around the world, 3.5 billion unbanked users will receive access to financial markets and credit lines, can conduct their businesses more efficiently, global crowdfunding campaigns can be launched and implemented with much higher outreach and transparency.

Verifiable and Auditable

Transparency and liquidity are fundamental to cryptocash.

There’s actually a complex setup process to become a cryptocash issuer/underwriter — plenty of documentation and verification from an authorized audit company, like one of the “Big Four” is required to verify issuance, and to guarantee every cryptocash unit represents a “real” currency unit in custodian reserves.

There may be monthly, even weekly, audits of reserves. Users will be able to login to an online, view-only account to check for themselves that the balance exists.

Once all that is in place, we think cryptocash is on its way to being one of the most commonly-used payment networks in the world. To learn more, visit the company website and feel free to discuss your thoughts and ideas on our Facebook page.