Working with Local Institutions

In order to drive financial inclusion for all and ensure the existence of an accessible common instrument for exchanging value in real time for all individuals, businesses and Governments across the African continent and within the African diaspora in accordance with the ECO-6 exchange rate mechanism (ERM), The African Diaspora Central Bank (ADCB) through Lumi issuance and global distribution is inviting all local financial institutions across the continent and within the African diaspora to join the Lumi (AKL) community as service delivery Partners ahead of the new ERM date.

Those institutions which join the Lumi Community before this date may enjoy special access to the Lumi community as service delivery partners.

One of the immediate benefits would be an Institutional holding account for Lumi with conversion rights with local currency at the primary underwriting rate. This will ensure that the institution can convert Lumi into and only into their local currency on the Swifin Platform which can be held as a balance sheet asset in local currency value for the purpose of providing buying and selling services to their customers in the Lumi/Local currency trading pair. For example a bank in Nigeria that is successfully onboarded under this regime could be allowed to convert Lumi into Nigerian Naira and back into Lumi as they provide services to their customers in Nigeria. Similarly a bank in Malawi that is successfully onboarded under this regime could be allowed to convert Lumi into Malawian Kwacha and back into Lumi as they provide services to their customers in Malawi. The lumi that is accessible through the network of service delivery partners can then be used by businesses looking to trade across the continent using Lumi as a single instrument of exchange across the continent for the purpose of settling commercial transactions in Lumi in real time in an accessible manner for immediate operationalisation of the African Continental Free Trade Area (AfCFTA).

Under this arrangement any allowed conversion from Lumi into any local currency in digital form ONLY is exclusively for the purpose of trading Lumi against the local currency ahead of and in preparation for the ERM date. All such holdings can only ultimately be settled in Lumi (from which it was converted) and not into other currency outside of the continent under ERM regime. Access to any local currency (fiat) by any participating member of the community is expected to be solely through independent market based transactions with a local service delivery institution.

The Swifin Platform does not offer any conversion of Lumi (AKL) into fiat but provides a utility based community ecosystem accessible to all participating members. Any community member seeking to access any product or service or fiat must independently find a participating member that is ready, willing and able to offer such services and independently fulfil delivery of such a service, product or fiat.

The platform provides a utility ecosystem for members to access goods and services from participating Institutions either directly or via the online shop

Lumi is the Swifin Platform base currency and it is distributed in digital form only by the African Diaspora Central Bank. You may use Lumi to pay for goods and services from members willing and able to accept payment in Lumi for such goods and services without recourse to settlement in any other currency. You are encouraged to visit the online shop where you can part pay for goods and services supplied by independent Vendors.

Swifin was founded on the vision of an open ecosystem for delivering access to digital services to all. Swifin powers the Lumi issuance and distribution system globally. Swifin services are offered on the basis of a Platform as a service to sovereign states, central banks, and other regulated financial institutions and individual members of the community who may use the platform to drive financial inclusion for all and to participate in the Lumi Real Time Payments System globally in accordance with the ECO-6 Exchange rate mechanism.

Within the context of the Swifin Platform, any asset can be digitised in a way that makes it divisible and possible for it to be transferred from one member on the community to another subject to any agreed terms by the relevant parties.

For traded assets, tokens and currencies for example it is possible to change one form (original) into another(converted) and deliver or settle the underlying converted value. This process is what is referred to as conversion. On the Swifin Platform assets, tokens and currencies are not converted as there is no delivery in any converted form but rather transformed into an equivalent value only to enable the members to hold a digital representation of other digital assets in equivalent form other than Lumi with ultimate settlement on the platform only in Lumi. This allows all members to participate in holding the equivalent value of any currency or any digital asset in transferrable form to facilitate exchange between members at rates available at the time of the transaction.

Where any form of conversion is available on the Swifin Platform therefore it will normally be by way of exchanging one asset with another exclusively in digital form without any obligation to deliver the underlying asset in any other form other than its equivalent value in Lumi or as may be specified by the ECO-6 Exchange rate mechanism as it relates to participating member states, Financial Institutions, Businesses and Individual members as may be applicable.

Some or all conversions where available may be restricted to regulated institutions and states as may be applicable under the ECO-6 ERM rules applicable at the time of transaction.

When you convert a digital asset or utility tokens or credits or loyalty points into another you will always be subject to a conversion cost or buy/sell spread. The conversion process for Lumi balances is from Lumi to local currency equivalents where permitted and subsequently from local currency equivalents back to Lumi with ultimately settlement only in Lumi.

Because the prices of traded credits or utility tokens can go up as well as go down relative to others, you will always be subject to a fluctuation in value of any credits you hold compared to its value in another digital value. For example if you hold AKL 100 in your Account, you will always hold AKL 100 unless you make a transfer to a Merchant which reduces the amount or receive a transfer which increases the amount – there are no holding fees (and no interest) and you can keep the AKL 100 for as long as you wish. However, the conversion value of AKL 100 into NGX or USX or EUX will vary depending on market prices and conversion buy/sell spreads applicable to each token or proxy currency at the time of transaction.

The Swifin Platform allows anyone to hold credits in digital form and exchange those in real time with other participants or in exchange for goods and services sold on the online shop.

As community service delivery partners, Institutions can trade with other members of the community to facilitate the delivery of the underlying goods, services and fiat where necessary and where available subject to independent terms of business between the parties. Some of these participants are regulated financial institutions and they play the role of a Market Maker for the relevant digital asset pairs. They may enter into conversion transactions with other members of the Swifin Community at rates determined and agreed wholly and solely between the relevant parties who must both be members of the Swifin Community.