eCurrency Mint, an Irish start-up that developed a new technology allowing to issue digital fiat currency, has been financed by Omidyar Network, a world-wide investment company launched by the founder of eBay platform. The amount of received Series C funding remains undisclosed. 

The technology targets central banks which, following the rise of bitcoin, are turning to new fintech alternatives to offer to their clients. According to the Wall Street Journal, eCurrency Mint has approached several banks with its innovation designed to enable transactions between consumers, merchants, banks and payment companies through existing digital transaction systems, without the need to create a new payment infrastructure from scratch.

Jonathan Dharmapalan, CEO of eCM, confirmed that the technology was discussed with representatives of 30 central banks and an agreement was reached with at least two of them. He did not specify the banks or their countries, saying the announcements will be made soon.

Apart from strengthening of monetary control, the prospect of government-backed digital currency has a number of advantages. On the practical level, a lot of money could be saved without the need to print physical cash and finance real cash movement. On the security level, illicit uses could be prevented easier, due to improved transaction tracking. Besides, when all customers’ funds are clearly visible, as in the case of digital money, it makes it easier for governments to resort to negative interest rates policy, which so far has been avoided.

Anna Lavinskaya