Gamechangers

November 30th, 2022

Person reading a newspaper

Crypto with a purpose

We at SCF Brazil, the proud Winner of the Progress Champion Awards 2022 for Race and Equalities, are most pleased that our efforts for bettering the lives and business opportunities for the persons in Brazil who are living in "Favelas" are being recognised and honoured. The Brazilian authorities estimate that aa sstaggering 18 million plus persons are living in the "Favelas". Thus, the number of "Favelados" is larger than the population of the Netherlands.

SCF Brazil have introduceda desperately needed facility for the "Favelados" by establishing Conta S accounts. The normal banks will not provide an account for persons who do not possess a postcode. Since the "Favelas" officially do not exist and letters are not delivered, this fact has made it impossible for the "Favelados" to make simple payments and forced them to run around with wads of cash. By utilising the SCF Brazil proprietary Conta S-technology, we have created a solution to this problem and the dwellers in the Favelas now have accounts for savings, to make payments as well as to receive loans in our Credit Supermarket.

Furthermore, the "Favela" persons are quite industrious: In one region they have issued their own paper money which we now are replacing with the SCF Brazil stablecoin, the Brazilla. Just like the Conta S, the Brazilla is entirely based on technology developed inhouse and in its entirety owned by SCF Brazil.

The coin is pegged to the Brazilian Real (BRL) on a one-to-one basis and it is always 110% backed by fiat currency denominated "hard" assets.

Both individuals and businesses can within seconds open an account in the Conta S System at bancocontas.com where the user easily can purchase and sell Brazilla for BRL, save for a rainy day as well as carry out all normal banking services.

The new digital currency solves four major problems for the "Favelados":

  1. The Brazilla (abbreviated "BRA") allows free and safe transactions between individuals and businesses without the use of physical money and without the need of having a traditional bank account.
  2. The BRA empowers individuals and businesses by giving access to normal bank transaction systems such as the Brazilian instant payments system PIX as well as to micro-loans.
  3. The BRA offers extremely low transaction costs and the possibility to save money without the risk of holding cash.
  4. The BRA maintains mainta purchasing power within the communities to help foster local businesses and, therefore, grow prosperity.

The first two micro-credits in the Jardim São Luis "Favela" are paid out to the flower shop of Marcia Roque (second from the left) and to the bakery of Shirlley Santos de Paiva, represented by Pastor Gabriel Roque (third from the right) in the presence of Armin Altweger, Partner and General Manager of SCF Brazil (far left), Jon Malmsäter, Founding Partner of SCF Brazil (third from the left), Daniel Faria, Founder of ORPAS (second from the right) and Nik Machado, Partner and CTO of SCF Brazil (far right).

Business owners receiving certificates

In order to foster trust and name recognition, the SCF Brazil systems are used in a white label manner and carries the logos, designs and URLs of the NGOs working in the "Favelas". The NGO named ORPAS, https://www.orpas.org/, which has issued its own physical currency mentioned above, the Quilombo, is active in "Favelas" in the Southern São Paulo City region. ORPAS is now efficiently and productively promoting the replacement of the physical and counterfeit-prone Quilombo with the white labelled Brazilla.

This change is extinguishing the risks of counterfeiting and fraud as well as dramatically lowering transaction costs. As long as the BRAs/Digital Quilombos circulate in the system, the transaction cost is zero.

The Founder of ORPAS, Mr. Daniel Faria says: "In order to accelerate the development of the most vulnerable communities, partnerships like this with SCF Brazil are fundamental, as the best way we can support these communities is to combine access to credit and educational programs in order to foster entrepreneurship".

In another "Favela" the Non-Profit Organisation G10 Favelas, https://g10favelas.com.br/, centred in the notorious Paraisópolis Favela, a programme has been created for young persons to learn sewing skills. This "Costurando Sonhos - Sewing Dreams" initiative is quite successful: They have orders from Scania, L'Oréal and the largest bank in South America, Itaú, but since payments have been a major problem, as described above, it has been hard for them to expand.

SCF Brazil is now sorting their payment and supply chain finance issues by discounting the invoices from the large Purchasers of the textile products.

As a final example of that we at SCF Brazil do put our money where our mouths are and that we live up to our motto "Crypto with a Purpose", we would like to high-light the use of our crypto technology for donations. Since last year, the largest Childrens' Cancer Research and Treatment Organisation in São Paulo, GRAAC, has been able to receive donations in BTC using the SCF Brazil payment "rails": https://graacc.org.br/doar/.

This new and exciting donation facility which enables easy, seamless cross-border donations has now also been added to the arsenal of the NGOs active in the "Favelas" described above. Thus, it is now possible to donate in BTC to support ORPAS https://orpas.redecoin.com/ as well as to G10, https://g10favelas.redecoin.com/, without any fuss, delays or high transaction costs.

We at SCF Brazil look forward to continue this highly important, rewarding and meaningful work to use technology and financial innovation for the betterment of the lives of the persons who are born less fortunate.