As a new Filipino cryptocurrency, Digital Money Bits (DMB) plans to assist countries like their own who suffer from high remittance fees and an insufficient local economy with a proof-of-stake, merchant-based coin. The coin will cut the cost of money transfers coming overseas into the country; provide fast, reliable, and cheap options for merchants to conduct business, and give back to the community through network charity events.
Developed as a bitcoin fork, scrypt-based cryptocurrency in 2017, DMB just recently released their white paper on July 13, 2018 that explains their role in cutting remittance costs to the Philippines and other developing countries. According to their white paper, the Philippines spends over $33 billion in fees that is lost in the transfer of money from countries like the U.S. and Canada. This is a huge problem especially since only about 2% of the population works abroad.
Many cryptocurrencies hope to solve this issue using blockchain technology as opposed to third-party money transfer services like Xoom, PayPal, and Western Union. DMB’s masternode system has a lot of potential to become an adoptable form of secure payment.
The masternode concept of approving transactions decentralizes the process by allowing anyone to validate its code, not a centralized third-party. It also makes sending money fast since it is simple to become a masternode, requiring only 100,000 DMB and some basic knowledge of cryptocurrency. Masternodes get a reward of 75% of the small transaction fee while keeping most of the original amount intact. The more masternodes on the network, the less time it takes to process transactions.
This process is perfect for merchants who want to send money locally or internationally as funds can be sent efficiently using cryptocurrency then converted into the regional fiat currency. To avoid lost funds, occurring if wallet addresses are incorrect, DMB uses a system similar to a smart contract called a DMB Bungee, which uses a claim code to ensure the correct person receives the funds.
This also acts as a receipt that if unclaimed or has errors, the transaction is sent back to the sender through the masternodes rather than being lost in the jumble of the network. Merchants can be reassured that their payments are sent and received through a secure and fast channel.
Eventually, DMB hopes to create a platform just for merchants to exchange DMB for local currency without going through the blockchain. This would make the point-of-sale function of DMB extremely easy for laymen who are unfamiliar with cryptocurrency. As their white paper expressed, a DMB token would be used for internal exchange, which could possibly be used for online employment recruiting and even a small, interest-free loan service to help boost developing economies.
The DMB community has already begun to make positive changes in the Philippines through charity work. This July, DMB will host its second annual Project Malasakit that distributes school supplies to selected Filipino grade schools. You can see pictures from last year’s event here.
Currently listed on 6 cryptocurrency exchanges, DMB hopes to increase their presence in the crypto market and continue to make more improvements to their desktop and mobile app wallets. As the coin grows in popularity, they also plan to allocate more coins to various charities.