Blockchain News
According to Prime Shipping Foundation , the conversion process between different fiat currencies would be simplified by using its own digital currency . Ivan Vikulov , the company ’ s CEO , also thinks that using cryptos can expedite settlement times . Mr . Vikulov ’ s shipping agency already has handson experience when it comes to handling large crypto-related transactions . In fact , his company shipped 3,000 metric tons of wheat from Rostov-on-Don , a port city in southern Russia , to Samsun , a city located on the north coast of Turkey . The financial transaction for the shipment was done using Bitcoin .
Bitcoin ’ s Lack Of Liquidity
Although the freight charges were invoiced in Bitcoins , actually using cryptocurrencies to pay for the goods was not easy , according to Mr . Vikulov . The Prime Shipping Foundation CEO stated that processing the digital transaction was challenging because of their lack of liquidity ( fiat conversions ) when it comes to handling higher amounts . He went on to explain that , “ The conversion in and out of Bitcoin can sometimes take one or two days , and that ’ s not fast enough ”. However , he pointed out that by using his company ’ s cryptocurrency , once its launched , will reduce processing times to “ a few seconds ”.
To develop such a “ fast crypto ”, Prime Shipping Foundation believes that they need around $ 75 million . The firm also plans to process all shipping orders through its own Prime Crypto Bank , which is currently in the pipeline . Per the company , conversions to fiat currencies from its proprietary crypto will happen instantly .
Plans For The ICO
In order to properly conduct its ICO , Prime Shipping Foundation has hired experienced auditing firms . Additionally , the company is working on acquiring a banking license in Gibraltar , where its partner Quorum Capital Ltd . is based . This seems to be a wise move since Gibraltar is known for having cryptofriendly laws .
The shipping agency appears to be well equipped to handle this project . That ’ s because it is already trying to handle cryptocurrency transactions for bulk commodities through its blockchain-based payment platform . Distributed ledger technology has caught the attention of many other organizations as well . In fact , commodities dealer Louis Dreyfus executed what appears to be the very first farm commodity deal using blockchain tech . The transaction involved selling American soybeans to Shandong Bohi Industry Co , Ltd ,, a leading provider of agricultural products in China .
Clearly , cryptocurrencies and their underlying blockchain technology have numerous use cases . If Prime Shipping Foundation can successfully raise funds for its ICO and deliver on its promises , then it could help pave the “ crypto path ” for other shipping agencies .
Omar Faridi omar @ coregroup . info
Core Magazine 31