A company is operating in Mexico whose goal is to create a far-reaching collective financing environment. This is Snowball, a Mexican digital platform that also allows users to add funds to their accounts on the platform using bitcoin and other cryptocurrencies, as well as other traditional means of payment to finance projects. The goal is to give users greater access and breadth when choosing how to use their services.
CriptoNoticias obtained a report from Snowball, which explains details about this system, the legal status of the Mexican company, as well as the characteristics of the blockchain to which they will migrate information from their platform.
According to Snowball, currently, users can anchor their accounts using bitcoin (BTC), ripple (XRP), and ether (ETH). However, it said they are working on accepting lumens (XLM), Stellar's cryptocurrency, litecoin (LTC), and binance coin (BNB), the cryptocurrency of the South Korean exchange house Binance, the largest cryptoactive exchange house in the world today. All these are options to start financing in Snowball.
One element that stands out about this company is that its operation is completely covered by Mexico's FinTech Law. In fact, unlike other companies that are working with similar products and must wait for the norm to be definitively approved, Snowball is covered by the transitory provisions of the law, specifically "under the eighth transitory article of the FinTech Law, and is in the process of regulation.
Snowball began operations in a beta phase in 2017, many things have changed and improved since then, but having entered since then in the collective financing and electronic payment fund allow us to operate under the eighth transitory article of the FinTech Law. Today we are in the process of regulation before the National Banking and Securities Commission (CNBV).
In addition, on July 26, the company requested the necessary permits to operate as a financial technology institution on an informal basis, to receive feedback from the authorities on the process.
"We are doing everything possible to comply with each of the requests that the authority has requested to obtain certification satisfactorily, although it has not been easy, we are convinced that we have what it takes to achieve it," they emphasized.
The company is working on the development of a private blockchain, although at the moment they are using Ethereum's public blockchain. As explained by Snowball, after analyzing different alternatives such as NEO, TRON, CARDANO, IOTA, ZILLiQA chose the network designed by Vitalik Buterin for being "the most solid project concerning our needs and especially to our development time.
A member of the Snowball team stressed that the idea is to generate a private network of Snowball to reduce transfer costs between its users, in addition to facilitating the creation of intelligent contracts for projects that are being funded on this platform.
"This will help us to keep track of the needs of our investment ecosystem and then create our own service," he said.
However, until now, they have not worked on a fork, as they are awaiting the CNBV's provisions regarding the use of digital assets. A negative decision by this institution could throw Snowball's work overboard.
Snowball has two stable tokens or stable coins, SBMX (parity with the Mexican peso) and SBUSD (anchored to the U.S. dollar). The company has already designed SBEUR (parity with the euro), although it is not yet working. These tokens allow the movement of value through the platform "in a matter of minutes and around the world," they explained.
According to its website, Snowball has 18,870 users around the world. On its platform 163 projects are being voted while 32 are already receiving collective funding.