Crypto Goes to School

Welcome to web 3.0 - a world that runs on machine learning, artificial intelligence (AR), and blockchain technology. But as the title suggests, our topic today would be the future of blockchain, more specifically cryptocurrencies in the education realm. But before diving deep into cryptos in schools, let’s look at blockchain, the tech that powers cryptos.?

In simple terms of Investopedia, blockchain is a “public, peer-to-peer ledger that allows users to transfer funds, without involving middlemen. Each transaction is logged publicly on the database in a chronological order making it unchangeable”. Not a lot of people know this but, Blockchain was “invented” as a research project in 1991, which is way before its most popular usage as cryptocurrency like Bitcoins (BTCs). According to Bloomberg, the global cryptocurrency market size was valued at $1.49 billion in 2020, and is projected to reach $4.94 billion by 2030, growing at a CAGR of 12.8% from 2021 to 2030.?

BTCs, being one of the most famous cryptocurrencies of all time, was first introduced in 2008-09, through an internet forum titled “Bitcoin: A peer-to-peer electronic cash system”, by a person who went by the alias Satoshi Nakamoto. Bitcoins, like other cryptocurrencies, use blockchain technology to act as a digital currency that any two people on the internet, from anywhere in the world can transfer without involving the banks and governments. Still a little confused? This short video by the Guardian makes BTCs easy to digest.

A Fun Fact: There are and will ever be only 21 Million BTCs in the world.

Outside Fin-Techs, cryptocurrencies such as BTCs are taking the world by storm with its potential to revolutionise the Education sector as well.?

Crypto in Education

Paying for your education with Crypto isn't a far-off dream anymore: Several schools in North America are accepting BTCs and other cryptocurrencies as tuition. In the US, King’s College in New York City started accepting BTCs as payment in 2014, eliminating the 2-3% transaction fee associated with credit card transactions. In addition,? the Wharton School at UPenn, San Diego State University, and Bentley University in Massachusetts are also among the schools which have joined the trend of accepting crypto payments for tuition. In Canada, Simon Fraser University has become the first to accept donations and integrate BTCs into their on-campus payment ecosystem. Although the adoption of this technology is slow, with more research and analysis, crypto will become the future of finance.?

Sectoral Cryptocurrency- Saber

Apart from being a direct payment method, a unique concept of “sectoral cryptocurrency” is also being explored by economists and education specialists around the world. In the early 2000s, a Belgian economist Bernard Lietaer worked together with Gilson Schwartz of S?o Paulo University, Brazil to present a proposal to the Brazilian Government, for a complementary currency called “The Saber”. The Education sector currency (which can now be built with Blockchain), would set “a substantial “learning multiplier” in motion. This means a given amount of funding in this sector can facilitate more learning for a greater number of students, without putting additional pressure on the economy.?

So how does Saber work? In practice, a tangible resource like university scholarships- turned into crypto tokens - enter the education system through younger kids, let’s say 7-year-olds. Students hold these tokens in e-wallets and transfer them to older students in exchange for mentoring or other educational activities, creating a transaction chain between students of various ages. Finally, the older students use the tokens to cash them in universities to pay fully or partially for their education. To keep the money in circulation and prevent hoarding, a demurrage fee (it loses its value after a fixed deadline) is attached to Saber.?

Saber can be simplified using this diagram below:

A little context:

The Helpcode project location of Bukavu, Democratic Republic of Congo is used as a hypothetical area for the use of sectoral cryptocurrencies in support of ongoing programmes aiming to reduce poverty through improving access to education.?

Although the idea sounds fascinating, the introduction and implementation of sectoral currencies have been a topic of controversy between governments and different policymakers. Hence, the concept has not moved past the experimental stage. But with new technological developments taking place every day, crypto might actually have a fair shot at becoming the new educational currency.?

All in all, cryptocurrencies have their own set of advantages and shortcomings and still have a long way to go before it’s adopted globally in the education sector. However, crypto or not, your school can help students pay for their education.?

How payd helps

Payd, which will be integrated into your school’s digital student card, will allow students to save and grow their money in 5 different ways and pay for their education.?

Want to know more about the partnership? Book a LIVE demo today with a payd representative.?