Miami FinTech Granted MSB License in Step Toward Making Payments with Gold the Norm
‘The streets will be paved with gold’ is an old expression about places where it’s easy to make money. But what about places where it’s easy to save, manage, and spend money? Coro is the Miami fintech really paving the streets with gold, for good.
In response to COVID-19, discussions about the need for new forms of payments have quickly surfaced. There are claims that physical currencies spread the rate of infection, while people in developing countries have been left without access to money as bank buildings close. Yet, even before the pandemic hit, how we buy and pay for things was changing.
The global fintech market has been growing at an annual rate of 24.8 percent and is expected to be worth $309.98 billion by 2022. The rapid expansion of fintech has been driven by a number of reasons, including offering faster, more secure, and in some cases, lower cost, payment options. And while cryptocurrencies tend to dominate the conversation when talking about fintech capabilities, instead, Miami-based company, Coro Global Inc. (Coro) is revolutionizing transactions using gold.
Democratizing gold for everyone
Unlike other assets, gold has proven to be a reliable investment and retains its worth over long periods of time. Because the precious metal is finite and durable, it is both in-demand and long-lasting, whereas, in comparison, paper currency can be damaged, and loses its value as more bills are printed. Likewise, the value of cryptocurrencies can fluctuate significantly. Not to mention, a 2019 report found that 95 percent of crypto exchange volume is likely fake or due to wash trading.
With this knowledge in mind, Coro is rethinking how everyday people can store and tap into the real value of gold by using it as regularly as fiat currencies. Users download the Coro app, verify their identity, connect to a bank or debit card to transfer money to the Coro account, and then exchange US dollars for gold. They can also send and receive payments in USD or gold.
All processes are safe and backed by distributed ledger technology that lowers the risk of cyberattacks or theft.
The app is due to launch in Q2 but users can join the waiting list to be the first in line to get it.
Newly-granted MSB license
In early May this year, Coro Corp — a subsidiary of Coro Global — was granted a Money Services Business (MSB) license by the State of Florida, Office of Financial Regulation. The license enables the company to offer its state-of-the-art global payments system via the app, where users can transmit currency, monetary value or payment instruments within the state of Florida, plus other MSN-licensed jurisdictions.
To attain the license, Coro implemented an in-depth compliance program, developed an advanced anti-money laundering and customer onboarding, and underwent a strict audit. In Florida, the requirements are particularly demanding due to the number of international payments that take place there.
Speaking about the process, Lorenzo Delzoppo, Chief Compliance Officer at Coro, noted how “even before developing Coro’s financial technology, we developed the strongest possible compliance program and regulatory framework to ensure compliant and secure operations on a continuous basis.”
Fairer, more sustainable financial system
For Coro, getting the Florida MSB license is a step toward democratizing access to gold for everyone. Especially in Florida, which has one of the highest Latin American populations in the entire US, the Coro app is a channel to connect American and international payees or investors.
And considering only 51 percent of everyday people in Latin America have bank accounts at a formal institution, Coro can actively help bridge the financial gap in regions that need it most. Further than that, the app can pave the way toward a fairer, more stable global financial system as a whole.
Coro is converting macro and often inaccessible concepts like gold, regulation, and technology into a practical platform that empowers more people to make smart decisions about their personal finances. Users can even request their physical gold to be withdrawn and safely shipped to them at any time. There are no transaction limits either and Coro can support 500,000 transactions per second – faster than both credit cards and blockchain.
Gold a failsafe in crises
History has shown time and again that gold can withstand crises in a way other traditional assets cannot. Because the value of gold isn’t based on companies’ profits or pegged to fiat currencies, economic downturns don’t have the same negative impact on it. For example, despite an initial drop, gold has slowly climbed up in price during the COVID-19 pandemic. By the second week of April, the figure peaked at $1,769 per ounce – the highest point in nearly seven years.
For Coro users then, gold is a more consistent, better protected form of currency that holds up amid turbulent markets.
Nonetheless, COVID-19 has highlighted the need for fintech solutions like Coro to help those most affected by the limitations of physical money systems – and more importantly – to ensure that future financial systems are sustainable. The MSB license is already a significant step in the right direction to reimagining money, democratizing gold, and helping users establish financial resilience.
Now, real change is within reach for people, society, and gold.