Digital Coins, Decentralized Stability, and the Quest for Financial Inclusion

Access to financial instruments is a global challenge that transcends borders, impacting individuals in both developing and developed economies. Startlingly, as of 2017, a staggering 1.7 billion adults worldwide lacked access to a bank account, leaving them vulnerable to the depreciating power of their currencies due to inflation. This exclusion from the traditional banking system exacerbates financial hardship, particularly for marginalized individuals who lack the means to protect their scarce resources. Even when access to banking services is achieved, users often find themselves burdened with fees, further diminishing their limited resources. This cycle perpetuates a glaring inequality where a select few profit from financial services that should be inclusive and accessible to all.

In this context, the concept of a decentralized invested stablecoin named “Factor Coin” (FCTRC), proposed by MBA Francisco Maldonado, emerges as a potential game-changer. This innovative stablecoin would be uniquely backed one-to-one by a strong fiat currency, ensuring stability in value. Its collateralization strategy would set Factor Coin apart, where users deposit funds into a reserve account to maintain a stable peg between Factor Coin and the strong currency. This mechanism instills confidence in the stability of digital assets, even amidst economic volatility. Moreover, Factor Coin’s collateral would be prudently invested in traditional, low-risk funds, prioritizing secure debt instruments like government bonds and blue-chip company bonds. This strategy not only enhances stability but also generates returns, with 70% of these returns allocated to increasing the value of Factor Coin, directly benefiting users, and incentivizing their participation in the ecosystem.

Factor Coin’s potential extends beyond borders, especially in emerging economies where financial exclusion is rampant. It holds the promise of stimulating economic growth by providing unbanked individuals with a user-friendly digital platform like Factor Wallet. This platform offers a range of financial services, including “savings”, payments, and disruptive investment opportunities, thus empowering individuals to build financial stability. Additionally, blockchain technology underpinning Factor Coin would address concerns and support microfinance initiatives and small business development.

A virtual coin-like Factor Coin’s characteristics would impact international remittances and would be especially noteworthy. Consider the example of Mexico, which saw a record-breaking $58.497 billion in remittances in 2022. A significant portion of these funds goes to unbanked individuals who rely on costly cash-based services, highlighting the lack of access to formal financial institutions. Factor Coin would have the potential to streamline remittance processes, reduce costs, and preserve the purchasing power of recipients. Redirecting even a fraction of checking account deposits into Factor Coin could generate interest earnings, promoting global financial inclusion.

However, it’s essential to acknowledge that regulatory hurdles, such as the “Howey Test” and other legal considerations, would need to be navigated to bring this concept to fruition. Nonetheless, with the right approach and adherence to regulatory frameworks, it is possible to launch a proposal like Factor Coin

In conclusion, while Factor Coin remains a concept, it serves as an intriguing subject of academic discussion in the realm of financial inclusion and stability. This innovative approach leverages blockchain technology, stability, and profit-sharing mechanisms to explore the potential democratization of access to financial returns. By addressing remittance challenges and offering accessible financial services, the hypothetical existence of a virtual currency like Factor Coin could spark academic interest in paving the way for a more inclusive and equitable financial future, ultimately empowering marginalized populations worldwide.


The information provided in this text is intended solely for educational and academic purposes. It does not constitute financial or investment advice, nor should it be interpreted as a recommendation to buy or sell any financial instruments, including cryptocurrencies or stablecoins. The content presented here aims to stimulate critical thinking and reflection on the possibilities and needs of vulnerable populations within the context of financial inclusion and decentralized stability.

Please be aware that “Factor Coin” (FCTRC) is a fictional concept used purely for illustrative purposes within this text and does not represent an actual cryptocurrency or financial product. Any resemblance to real-world entities or projects is purely coincidental. Before making any financial decisions, it is strongly recommended that individuals seek advice from qualified financial professionals and conduct thorough research based on their specific financial circumstances and goals.


MBA. Francisco Vicente Maldonado Haro. GAFM® Fellow of the Academy

CEO, Factor Tech s.r.o. / FACTOR WALLET.