Jed McCaleb wants to use the cyrptocurrency craze to help correct one of the flaws he believes the current banking system possesses. The current banking system originated, in part, during the Middle Ages. The Knights Templar ran some of the earliest banks, and this allowed them to accumulate power. The current system, McCaleb believes, favors large investors over the common people. He started Stellar to help people developing their own fledgling cryptocurrencies get their start.
Thousands of cyrptocurrencies exist. Based on this Global Coin Report article, the larger ones, such as Bitcoin, can be worth several thousand dollars. Some of the coins, such as ArtBytes, sell for less than a penny per coin. His current project involves a coin called Lumens. Acquiring the resources for most cryptocurrencies is free. The open source code for BitCoin, for example, can be download from GitHub. Using already existing open source code allows Jed McCaleb‘s company to focus on social issues.
Current banking models are often tied to the credit industry, and many banks do not let people with poor credit ratings open an account. Some people cannot keep checking accounts open because of their limited financial resources. There are financial services that cater to this demographic, but they are often high-fee reloadable debit cards. It costs money to load these cards, and the user usually has to pay monthly fees to keep money in the account.
McCaleb hopes to use the account to help promote entrepreneurial spirit. Millions of people across the world would love to start their own businesses but cannot access the funds because the banks will not lend them money. Because simple gear to mine cryptocurrencies can be easily gained, he belies his new Lumens coin, along with other crytocurrencies, could revolutionize the current financial industry. This may happen if larger governments do not crack down on them.
Check out Jed McCaleb’s prediction about the blockchain and the banking system: https://www.cnbc.com/2018/03/21/an-early-bitcoin-pioneer-predicts-how-the-blockchain-will-change-banking.html