A while ago, black people started talking about rushing to a black-owned bank and opening up an account because it’s black and they black and they want to have their money in a black institution because it is a black-owned bank. Then you saw pictures of celebrities posing with black-owned banks acting like they doing something in the name of blackness. The celebrities claim they opening up accounts in black banks to promote black economics and bottom line, both the black-owned banks and these black celebrities are full of shit because they have the money and legal structure to really do black economic empowerment the right way but they simply don’t and sell the black community some bullshit and yall cats buy that shit up.
True black economics involves establishing manufacturing and trade which is establishing transactions to facilitate import and exports of goods and services. Manufacture shit other people want and export it; import shit we want and consume it – it is not that hard to understand what it takes to create black economic activity in the black community to create jobs, boost local spending and establish a better quality of life. Well, thanks to the blockchain, I’m going to show how to actually do real shit for the black economic community with just $226 to get setup and up and running.
In this article, we are going to show how to setup a nostro and vostro account on the blockchain similar to correspondent banking to work with global trading partners to allow our sista entrepreneurs do group buying and rapid turnaround and how to facilitate a blockchain-based letter of credit with a smart contract. Ok, I know I used a lot of big words on international banking but then again, some of us have actual real global banking skills while others talk about FOREX on a black PUA BBS group. And I’m pretty sure black-owned banks and these black celebrities have $226 in their pocket to do something real but like I said, they bullshitting yall in the black community where they can really work on actual fucking solutions to empower our black communities if they wanted to.
What I’m presenting is not original – there has already been two blockchain trials where Wells Fargo and ANZ bank in Australia did a blockchain distributed ledger test to perform the actions of a correspondent bank and where HSBC and Bank of America and IDA in Singapore did a letter of credit over a blockchain distributed ledger. Luckily, we got the Afro-Tech that knows how to rock the blockchain so once again, real cats are in the room so take a seat and learn how to do real black economics like a pro. Let’s first explain what a letter of credit is and correspondent banking.
A letter of credit is a way two banks can facilitate a global trade between a buyer and seller in two different countries. In our example, an American bank would send a letter of credit to a Chinese bank that will notify an Alibaba seller in China to ship the hair because the money is there and the payment will be made once proof is demonstrated the shipment arrived to the buyer. The shipment reaches America, the American bank see the buyer has the package and then transfer the funds via SWIFT to the Chinese bank which will release the fund to the buyer. With the blockchain, the letter of credit and the transfer of funds can happen in real-time and a smart-contract can be tied to the shipping logistics when once the buyer signs, the funds are automatically released in near-real-time across the globe.
The best way to describe correspondent banking is like a “white label” where let’s say an American bank want to do business in China and work with a Chinese bank that will white label the account for their American customers in China. Many of you guys if you go overseas, your bank will tell you to go check your account with a foreign bank they are affiliate with – they are replicating your account information between the two banks. The problem is the replication can be slow and that’s why the blockchain is desired as a middle solution to let both banks see a distributed ledger in real-time instead of end-of-day settlement.
One of the things I said is what is most important in choosing a bank is how a bank can handle your money and you better put your money where it can be handled the way you need it to be handled. If you look at a black-owned bank like Citizen Trust Bank and others, none of them facilitate black women obtaining a letter of credit to send to an advisory bank in China to create a purchase order with a Chinese hair vendor to immediately ship the hair weaves to the United States of America. They could but they simply don’t. Sistas have to go deal with banks like HSBC.
So again, these black-owned banks ain’t just popped up overnight; they been around for generations in the black community. If black-owned banks were truly about black economic empowerment they would have setup the global trade lines to elevate the game of black entrepreneurs in our community to do global trade and wholesaling which would create the high level of economic activity we need to drive the black economy in the black community, not some damn fast-food franchise business loan. Furthermore, if these black-owned banks were truly black; they would have setup those trade lines with Africa and Latin America a long time ago also but they didn’t. All these black-owned banks got is consumer-grade products to promote black spending and collecting penalty fees if blacks overspend on their accounts.
Our blockchain distributed ledger proposal to help sistas conduct overseas transactions in the hair industry is similar to the letter of credit trial the banks did except we will replace the issuing bank with a holding escrow account that the sistas can contribute to perform group buying. The holding funds will be funded by sistas looking to group purchase from a vendor in China or India and the holding funds structure will issue the letter of credit and pay the advisory bank via wire transfer or a manual SWIFT transaction. The blockchain will make sure all parties including all the sistas in the group buying know the product has been shipped and paid for and know the vendor and the advisory bank. Funny how we can setup black women group economics and global trade for $226 while these celebrities want to flex like they doing something for black economic empowerment.
Don’t just think China, think Africa where black American women can import Ethiopian coffee or South African wine and sell it around the world using the same blockchain ecosystem. African-American sistas can manufacture quality clothing here in America for the African market and sell it to wholesalers – it is faster to ship from Savannah, Georgia than from China to the African west coast nations. American sistas can do the same thing with their sistas down in Latin America selling used fashion on the blockchain also. See these are the things the blockchain can do to facilitate black economic empowerment via global trade that black celebrities and black-owned banks could do but are bullshitting and just posing.
By the way, do these celebrities artists flexing like they doing something realize the blockchain is about to be used to replace the copyright office by creating digital timestamp of music files on the blockchain and replace BMI/ASCAP by paying out royalties in real-time to music artists by applying smart contracts to streaming services? But guess what – that’s another $226 that it will cost us to make while no black-owned bank will fund such an idea or these black celebrities will look for some Silicon Valley Asian/White geek to come up with the idea to support them with millions to pretend they are hipster with digital technology.