Please describe your proposed solution.
An area where traceability is needed, perhaps urgently, is one that concerns all readers of this proposal: public money to be invested in projects for the good of the community.
The current lack of visibility into the use of public funds and foreign aid poses a significant challenge to communities in both “developed” and “developing” economies. Traditional financial systems (TradFi) and existing cryptocurrencies do not provide real-time insights, leaving governments, organisations, and citizens vulnerable to corruption and misuse of funds.
The primary aim of this project is to address the transparency and real-time tracking gaps in public fund management and similar areas.
Approach:
Our approach involves building TEuro, a non-anonymous and fully transparent stablecoin built on the Cardano blockchain.
Currently, we can only rely on what decision-makers say they will do. We tend to conduct retrospective examinations to recognise fund misuse related to corruption, and in some cases it’s still difficult to pinpoint where exactly the money goes.
This reactive approach comes into play once most of the damage has been done and can provide only a glimpse of the truth.
By leveraging Cardano's capabilities, TEuro will be able to validate identities and track public money, greatly enhancing the level of transparency and exposing illicit or misplaced financial flows.
TEuro will require up-to-date KYC verification before each transaction and will show the entire ownership graph of the tokens, creating an immutable ledger for public money. The real time monitoring of public funds and foreign aid would potentially decrease corruption.
The ledger will be widely accessible because individuals have the right to access information, especially information concerning them in some way. In this sense, the TEuro ledger will nudge us closer to Open Data.
TEuro will also benefit from this wide accessibility as it creates a fertile environment for creating a vibrant community network. The larger the network, the more effective TEuro will be in providing a holistic picture of money flows in Europe.
The off-chain components will be backed by our API software to create a TEuro Block Explorer API, further increasing Cardano’s visibility and expanding the user network.
By decreasing corruption and ensuring the correct allocation of funds, we hope to create opportunities for economic growth and increasing public involvement & awareness.
Target Audience:
The project engages a broad spectrum of stakeholders, including government agencies, non-profit organisations, anti-corruption entities, citizens, and anyone involved in or concerned with the allocation and use of public funds.
Some examples of where we see Cardano’s TEuro making real change:
- Government departments and local authorities in charge of planning and executing public works and projects
- Governments disbursing foreign aid
- Charities trying to bring transparency to their operations
- Governments disbursing new types of government support
- International donor organisations that want to prove they are meeting their goals
TEuro provides a solution that enhances institutional accountability, reduces corruption risks, and ensures the efficient use of public resources.
Note: When ideating this project, our initial choice of platform was Cardano due to its functional, formal code base and overlapping values. However two years ago we got stuck with the Cardano implementation and have gradually worked on an Ethereum based solution. We now want to evaluate a port of our code to Cardano (preferred) to explore the feasibility of sidechain integration between Cardano and Ethereum.
Demonstration of Impact:
The impact of TEuro will be demonstrated through:
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Transparency: The existence of an immutable ledger of public funds that can be traced with clarity.
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Accountability: TEuro will increase accountability in fund management, reducing the likelihood of corruption and misuse and enabling the early identification of same.
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Efficiency: Governments and organisations will benefit from more efficient and accountable allocation of public resources, leading to positive socio-economic outcomes.
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Community: TEuro’s functional value will grow as the community network surrounding it grows.
Uniqueness and Importance to Cardano:
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First-of-its-kind Ledger: The Cardano blockchain will be home to TEuro’s public fund ledger, setting a precedent for similar stablecoins in the crypto space.
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More stablecoin variety. Cardano’s stablecoin ecosystem is still growing, and TEuro will be both a compliant stablecoin that drives institutional adoption, but also a tool for a specific niche in the market that isn’t being addressed.
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Institutional visibility. KYC-based tokens spark the attention of traditional institutions. TEuro will give Cardano more visibility with such institutions, including financial and regulatory institutions.
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Overlapping values. TEuro aims to make positive change, aligning greatly with Cardano values. Cardano’s TEuro will demonstrate the network’s dedication to its mission and provide increased credibility, especially among traditional institutions.
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Global Impact: TEuro's impact extends beyond individual governments, contributing to a global standard for transparent fund management.
Benefits to Stakeholders:
- Governments: Enhanced accountability, reduced corruption risks, and improved public trust.
- Organisations: Efficient and transparent management of funds, fostering donor and public confidence.
- Citizens: Confidence in the responsible use of public funds, contributing to socio-economic development. Allowing commenting on transactions, giving the public a voice and allowing networks of values to emerge.
TEuro represents a solution that aligns with Cardano's commitment to transparency, security, and global positive impact. By addressing the transparency gap, Cardano will set a new standard for responsible financial practices.