Solid digitizes fiat currencies, such as the euro and the U.S. dollar, and enables financial transactions via blockchain technology. Solid is a digital currency that will be used to instantly settle transactions between users. Because this digital currency is directly linked to a national currency, it is just as stable as the respective fiat currency. Each Solid Currency Token will be redeemable for one euro (or U.S. dollar). It is not subject to the typical volatility of conventional digital currencies and can hardly be compared with them.
We refer to the digital currency we issue in exchange for fiat money as Solid Currency Tokens.
When a customer deposits €500 with us, they will receive €500 in the corresponding digital currency from us in return.
At first, we will focus on the euro and the U.S. dollar as fiat currencies. Other fiat-based digital currencies will be included in our portfolio over time as soon as the demand arises.
No. Solid Currency Tokens will be generated or burned constantly depending on the needs of Solid users.
No. We make sure that for every digital euro (or U.S. dollar) in circulation, corresponding fiat money is stored in trust accounts at German banks regulated by BaFin*, the German Financial Supervisory Authority. Our customers send fiat currency to us by bank transfer or direct debit and receive digital currency in the corresponding amount in return. Conversely, each customer can debit their digital credit to their account at any time and receive fiat currency.
*BaFin is one of the world’s strictest and demanding financial regulatory authorities. An independent federal institution under the supervision of the German Federal Ministry of Finance.
The Stellar blockchain has the added advantage that all assets based on it are automatically integrated on the Stellar Decentralized Exchange, or SDEX for short. This means that our Solid Currency Tokens (SCT€, SCT$) are listed directly on this trading platform (exchange) and ready to use right away.
We have ongoing discussions with leading exchanges to list our tokens. Thanks to the spread of Stellar, listings on the biggest exchanges are very easy.
Our business model takes the form of a transaction-based model. For every transaction, we charge a low fee based on the respective transaction volume.
While credit card providers and other payment and transfer services charge minimum fees and additional variable fees of up to 7%, at Solid we limit ourselves transparently to a fee of only 1%, regardless of the country and the amount of the transaction.
With payment amounts between 0.01 and 1.00 euros we speak of so-called micropayments or nanopayments. Such payments are for example the case when merchants individually invoice a specific item, a specific functionality or a single virtual item in an online game or a newspaper article. High transaction costs (fixed fees + up to 12% variable fees) make it uneconomical for merchants to bill such small amounts so that they are forced to sell multiple items as a package which automatically leads to higher prices for the consumer and to the unattractiveness of the offers. This restriction will not apply to Solid as there are no minimum fees for merchants and a revolutionary low variable fee of 1%.
Maintaining the trust of our users is the most important thing to us. Interested parties can view our account balances and see that every digital SOLID Currency Token in circulation, is backed by corresponding fiat money stored in trust accounts. This will be continuously checked and testified by an external renowned auditing company, such as PWC, Deloitte or others.
No. Unlike traditional banks, we will not speculate with the money of our customers. Furthermore, we are creating a solid contract that guarantees the aforementioned 1-to-1 ratio and gives our customers the legally enforceable right to withdraw the digital currency in their possession to their bank account at any time in the form of fiat currency.
Germany has one of the most stringent financial regulations worldwide, monitored by the German Federal Financial Supervisory Authority (BaFin). We deliberately chose Germany as a location to further strengthen the trust that exists between us and our customers. We operate under the rules of one of the strictest financial regulators in the world – for the security of our clients’ money.
While the Solid Currency Token uses the decentralized Stellar blockchain, the equivalent in fiat currency, that represents the amount of circulating digital currency, is in the traditional financial system. Solid combines “the best of two worlds”: the speed and security of blockchain and the stability of a national currency.
Our MVP (Minimum Viable Product) already covers basic functionalities, such as send and receive payments, billing the transaction fee etc. and is gradually being optimized. However, additional legal & compliance work is needed to provide our customers with absolute peace of mind while using Solid. Once this work is completed, Solid Currency Tokens will be available to our customers.
Solid offers a wide range of applications that are being developed step by step.
For traders / investors of conventional digital currencies such as Bitcoin, Solid can be used as a safe haven to escape the volatility of the market without leaving the digital environment.
Online merchants can now offer their users the next generation digital payment method that makes use of the advantages of the innovative blockchain technology and passes these on to the merchant and his customers in the form of sensationally low-priced fees.
Especially in the area of micropayments Solid makes the difference with its fee structure and opens up new opportunities for both providers and customers. For game publishers for example we offer an unprecedented way to invoice individual virtual items in an economically sensible manner and to convert non-paying users into paying users with appealing offers.
Our clients, who support their families in their home country by regularly transferring funds to them, benefit from the advantages of instant money transfer and the sensational low fees. While they pay an average of up to 7% of the transfer amount as a fee to classic providers, Solid accounts for only 1%.
We have examined a variety of different blockchain technologies and evaluated them according to our needs. The criteria of fast transaction speeds and low network costs played the biggest role in our evaluation.
Stellar is the most capable platform when it comes to financial transactions. That is why we chose the Stellar blockchain, which is also the leading platform for financial transactions and cooperates with partners like IBM and Kik Interactive.
In addition, no miners are needed to validate transactions on the Stellar blockchain as is the case with, for example, the Bitcoin blockchain. This also eliminates the high power consumption of the miners’ high-performance computers that are usually required for validation.