I decided to try and piece together what this is about and here's about what I could make sense of. If anyone has corrections or more to add please feel free.
They're going to basically build a crypto wallet client for USD Coin which is a stablecoin variant cryptocurrency. This means that each "coin" for USDC is said to be backed by a dollar. As you might know with Bitcoin the prices is extraordinarily volatile which has a lot of down sides for practical users (that is ecommerce, transactions, etc). The key downside, as it would be for this product, is the unpredictable transaction fees. Right now Bitcoin is heavily weighed by huge transaction fees which is tied to the high per-coin USD value.
This is why stablecoin concepts exist, to stabilize trading value around a specific monetary currency. This is detached from Bitcoin and has no relationship to it. The idea as I gather from the presentation is that they are betting on countries to all develop a stablecoin variant of their own currencies. So for example today we have the USDC which is backed by the dollar and then (I'm making this up for an example) there might be a BZC for a Brazil Coin.
This is the underlying "fintech" the presentation I saw from HUMBL is talking about, and their mobile app would basically contain a cluster of wallets, one for each countries variant cryptocurrency. Then instead of going through traditional currency exchange markets you would "exchange currency" through crypto markets, of which there are many but in this case HUMBL would need a network to support their own exchange. They need their own network because that's how I speculate they would make money, they would collect the transaction fees from the crypto exchange trades which happen behind the scenes.
In effect, if you transfer $100 into a HUMBL wallet you're actually converting $100 to ~100 USDC, and from there you can transfer to whatever the exchange rate is to BZC, then when someone in Brazil accepts the transfer they'd export from BZC to the native monetary currency.
This is in principle a concept a number of international banks are already working on, there are also cryptocurrency projects doing the same but not with stablecoins exclusively. HUMBL just has a higher profile, but they are actually not unique in this effort. So one risk here is that HUMBL needs to get out quick and collect some market and make their brand known before other companies and banks roll out competing solutions.
In the broader world of "fintech" this is a hot market for sure, no denying that, but the solution as a whole is no simple thing.
Many cryptocurrency markets in the early years of crypto crumbled under the weight of high volume and the networks crashed or became too slow to use, but it's actually still an issue today. This leads to another risk HUMBL has to face, which is that the projects underway by major banks have the advantage of existing world-wide infrastructure. HUMBL does not just need to build a mobile app, they actually need a lot of server power globally for low latency crypto market exchanges which have to happen behind the scenes.
This is just my initial assessment based on my extensive knowledge in the crypto landscape, I would say there is promise here but I also wouldn't bet the farm. I see a lot of challenges which I don't think will be accomplished in the timeframes given. Not to say they can't work through it, it's just not as easy as lot of you think.
More research needs to be done on the preparedness of stablecoins in other countries, we need to better understand the architecture and server infrastructure. I still have a lot of technical concerns and business questions. But that's what we get with the OTC, high risk and with a little luck high reward. That fits this.
There's still many issues I haven't addressed. If you don't know about crypto the biggest risk you have is securing the wallets. Wallets are encryption keys, and if those keys only live on your phone, on this app, then the loss of your phone can also mean the loss of your money. Securing keys in the cloud is a challenge unto itself, backing them up so you can recover, etc.
There's more but I think I've already written a lot and need to do more research.
AI
