An essential element of financial systems is defining who is holding the money, or financial assets.
The identity of customers is a key regulatory interaction point, which helps prevent the financing of terrorism and the laundering of money from criminal activities.
Identity is a key element to our PowerFinance products. Our digital identities will be for people, companies, and trusts. Trusts, particularly common in New Zealand, are typically a key compliance friction point within many traditional financial service providers.
Every financial system needs a way to store value and transfer ownership.
Our PowerFinance products are being built to use next generation money supplies, smart money. Smart money puts the compliance layer into the money rather than on top of it. This enables better controlled financial systems and makes collaboration between different parties easier.
The final element to a financial system is financial contracts – and in our case, smart financial contracts.
Financial contracts allow us to build assets that describe the present and future, potentially conditional, movement of money between identities.
To align with international norms, we have set out our smart financial contracts to match the International Swaps and Derivatives Association (ISDA) definitions. This helps ensure that the technical certainty from the smart contract execution is matched and supported by the legal certainty that arises from drawing upon those international standards and case law.