The environment is now a global priority, as evidenced by the threat of rising carbon dioxide emissions to 414.72 parts per million, a new record in 2021, as reported by the National Oceanic and Atmospheric Administration’s Climate in the United States. Keeping in mind the impact of these emissions on climate change, many countries have advertised their mission to reduce their carbon emissions. For example, the United States has openly communicated its plan for environmental commodity measurement through the Bureau of Economic Analysis.
However, for many sectors, achieving zero carbon emissions is impossible; carbon offsetting becomes crucial to counter residual emissions. Under this model, organizations can offset residual emissions by investing in carbon-absorbing projects. Carbon offsets then become a method of keeping track of the number of credits an individual or organization needs to be carbon neutral.
Accordingly, 1GCX President and Founder Michael Wilson shares:
“Environmental commodities, a class of assets that exist as intangible energy credits, are now recognized as the most crucial value creators over the next 10 to 50 years.”
Consider that with the environment and carbon becoming a top priority for the world, the traditional way the world views energy and, more importantly, value, is likely to change as well. As more and more countries begin to operate with an energy credit-based approach, US dollar-denominated value and debt that may never be repaid may no longer be sustainable.
Value, which is a construct of perception, can shift to allow countries to recognize intangible energy credits, more specifically carbon credits, in their balance sheets. Recognizing energy against dollars makes sense when you consider how significant the US debt is and how paying it off requires a budget surplus, something the country hasn’t seen since 2001.
Unify the carbon market
Currently, there is still no unified carbon market solution that allows participants to quickly and seamlessly capture the value of carbon commodities. Today, several private companies offer carbon offsets to companies or individuals, each representing grant investments in forestry or other projects with a negative carbon footprint.
Alternatively, buyers can purchase credits on a carbon exchange, but unfortunately traditional finance (TradFi) has a bad reputation for being archaic and part of a suppressive system. High-quality carbon credits are in short supply as verification methods vary, among other reasons.
For this reason, 1GCX believes that taking the best parts of TradFi and merging them with the blockchain will prove to be the only solution capable of supporting a global transition to this new value system.
Michael Wilson continues to share:
“Freedom begins and ends with the decision to be responsible for yourself and your world, especially your environment. Trade, economy and currency are at the heart of our civilization. If freedom is to be the ideal, then the only path forward is that of freedom and responsibility. Cryptocurrency is bringing money, value, systems and philosophy to the fore of people’s minds. We are on a precipice, a new era is upon us and the choice is one of conscience, which is the path we will take.
An approach focused on raw materials
1GCX is addressing these concerns head-on. The exchange represents a green technology that can bring the benefits of new markets to the cryptocurrency market valuations by highlighting its most promising projects. The resulting two-way bridge to carbon offsetting trading becomes part of a broad, holistic marketplace that can facilitate adoption, education, and connection across the cryptocurrency industry.
Unlike others in the space, 1GCX has incorporated a market-making, commodity-based approach to reshaping its financial markets. Also, the incorporation of association and cross-application of cryptocurrencies, commodities and carbon credits differentiate this platform from other exchanges. For users, this means a new user experience for trading on the platform, with access to live carbon and energy markets. Therefore, 1GCX will become an ecosystem starting from a market where ordinary people can access one of the best kept secrets of global finance: carbon commodities, also known as Natural Asset Capital.
Looking across the rest of the ecosystem, users will come face-to-face with transformative offerings centered around tokenized bonds, called black bonds, and new payment systems that integrate cryptocurrencies with crypto-commodity pairings.
As of May 11, 2022, 1GCX continued to offer trading pairs with Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), USD Coin (USDC) and Tether (USDT) and some less common trading pairs against not only the US Dollar, but also Canadian Dollar, Euro and British Pound, as well as other well-known digital assets and physical commodities. Built on the best fundamentals of TradFi, the platform’s exchange has decided to add new cryptocurrency assets every week. It also shares roadmap plans for creating the first digitized carbon assets from a variety of offset verifiers around the world. These assets are said to be available for trading as early as Q4 2022.
Unlike today’s private exchanges, 1GCX will offer smooth and fast payouts, complete with low commissions. For new users, this means having access to one of the most accessible platforms to use, even if they have never used a traditional exchange before.
RA Wilson, Technical Director of 1GCX, reaffirms the company’s mission:
“Our economic principles of open and transparent markets begin with increasing capital flow and accounting for unavoidable emissions through the use of free-market solutions such as carbon offsets in a way that benefits everyone.”
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