Renewable Energy is the Perfect Collateral for Stablecoins

The interconnected world

As you’re reading this, tens of thousands of miles of optical cables diligently transport data sent by server farms worth a hundred billion dollars from New York to London, from Hong Kong to Amsterdam, Rio to Moscow, Johannesburg to Oslo… The connections we’ve build promise a world where information and commerce travel freely across the globe.

Reinventing money

Every fifty to a hundred years, humanity reinvents its currency. This happens at an inflection point when the current system starts ripping at the seams. Metal coins transitioned to paper money. At first, they were mere proxies — redeemable worldwide for gold, silver or other commodities. Middle of the 20th century saw us brake from commodity backed money into fiat. Named after the latin phrase “let it be done” — fiat money was issued by a central authority and controlled by expanding and contracting the money supply. This power was transferred by the people to their elected representatives (or unelected in the case of US and EU and most others). They had control over the levers of interest rate and the mechanisms of primary and secondary emission to control the amount of money in circulation. To vastly oversimplify, the goal was — keep the inflation of money at a healthy rate to incentivize investments and grow the economy.

Blockchain — placebo or panacea?

In 2008. the financial world was falling apart. The markets took a nosedive and century old institutions closed their doors. Millions lost their jobs, their life savings and their homes.

Collateralized digital money

After we realized classical cryptocurrencies were not going to cut it we started thinking about ways we could build money which has the best of blockchain and the best of fiat.

Choosing the right collateral

The question which comes up naturally when we talk about collateralized money supply is what will the collateral be?

Making energy sources digital

The title says digital assets. Power plants are very much physical assets. There needs to be a way to mirror these physical assets onto the blockchain. This is what we do at AMPnet — we bring the ownership of energy sources on the blockchain. Our platform ensures that the legal ownership of renewable energy sources is matched completely with the ownership representation on the blockchain.

Renewable energy only

At AMPnet we are committed to only digitize and fund renewable energy projects. This is the social responsibility we all have towards ourselves and the future generations. Luckily for us — solar is quick becoming the most profitable energy source. In developed countries — renewable energy is also strongly correlated with economic output. Not a bad coincidence!

Conclusion

With all this in mind — I have no doubt that this is the way the money of the future will work. Blockchain powered, collateralized by digitized renewable energy sources. It’s a bright vision of the future and we’re working hard to make it come true.

AMPnet • Build a blockchain powered investment platform — with integrated trading — in minutes. Wrap your investments into synthetic tokens and use on DeFi apps

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