6mo ago

Italy’s fintech innovation transforming business with Sardex

"Sardex, an Italian fintech, created a mutual credit system where businesses exchange goods and services without cash.

This trust-based network has strengthened the local economy and inspired similar models across Italy."

📰 https://positivenewsfoundation.org/video/italys-fintech-innovation-transforming-business-with-sardex/ 📺 https://youtu.be/eeB2tsS6xpM

13 comments

This sounds like mafia is replacing government currency with their own. How is taxation handled? Is it legal because it can’t be exchanged into EUR officially?
- mafia?
  
  Unclear relationships and methods of accounting, especially in the context of taxes ✅
  Evading AML/CTF regulations ✅
  Taking on roles typically fulfilled by the government ✅
  in Southern Italy ✅
  
  The mafia is still very strong in Italy.
- I was gonna answer myself but I found a link for you https://valori.it/credito-10-anni-sardex-scommessa-vinta/
  Btw the “mafia” thing sounds like something that someone who knows nothing about Italy would say. Most of all because thanks to the real struggle with mafia in the past we now have a lot of instruments to keep restrain them. Most of the submerged economy is made by regular companies and professionals that here and there avoid declaring their real earnings.
  
  I still have trouble understanding what problem does Sardex solve (which is flat out a red flag in context of AML). It’s described that it allows for lending activity as well as barter. For all the talk of not being a currency it is one because that’s the only new thing that it brings to the table. You can do all of those things with bank relegated to holding cash at hand only.
  And for all those dubious benefits, it certainly helps with all the pesky due diligence that a regular bank does on the behalf of the government. I wasn’t born yesterday - this is done to obfuscate anything from tax avoidance to human trafficking.

13 comments