Many of you wrote asking me what this conference is all about later this month, and what Standard Reserve is all about. So, I wrote this piece that helps explain it.
With customers in 114 countries worldwide and growing daily, it is now possible for individuals and business to send money to anyone, at anytime, anywhere in the world and have them receive the currency immediately! And, since we only need deal with two currencies, we don't have to worry about the exchange issues normally associated with money transfers.
How does it work?
Letís use an example, and say a business in the U.S. wants to pay a supplier in the Caribbean. The normal channels would be to wire funds to the supplier, which would take 2-4 days. Or they would send a check, which could take weeks to clear.
Instead, they contact a local exchange agent in the U.S. (part of Standard Transactions (USA) Ltd.), and they purchase electronic gold ≠ Standard Gold ≠ with instructions to pay the supplier in the Caribbean. Letís assume the supplier happens to have a Standard reserve account. The agent would spend the funds directly to the supplierís account.
Then letís say that supplier in the Caribbean has to pay a manufacturer in Japan, and letís assume the manufacturer does not have a Standard Reserve account. The supplier clicks the funds across from his account to Standard Transactions (Caribbean) Limited with instruction to pay the manufacturer in Japan. Standard Transactions (Caribbean) Limited spends the funds to Standard Transactions (Japan) Inc. who pays the manufacturer with a check drawn on a local bank. All done immediately, with a check ready for pickup or delivery within minutes!
Since the currency used for payment is gold, the parties involved in the transactions need not worry about the exchange rates between local currencies.
Letís look at another example, and say a Mexican working in the U.S. wants to send $500 home to his family in Mexico. He can go to his normal money transfer source where they charge 5% or $25, plus a difference in the exchange rate. One of our customers said it cost him $95 to send $500 home. When we tried to send $500, we found the total cost to be $51.67 or 10.33% of the total. It would take 24-48 hours for the funds to arrive and the family member would have to find a local agent to obtain the funds.
Instead, his employer could pay the worker directly into a Standard Reserve account (actual case), and the Mexican could spend money to his family online, which is then available at a local ATM. The cost? $5.
One multi-national company now spends $4 million a year paying suppliers and executives worldwide. The costs include processing the payments and the exchange rates. Using Standard Reserve they would pay $500,000 a year.
Closer to Home.
What about when your daughter is backpacking through Europe, and you get a frantic call on Friday at 4:00 PM that she need $200 by Saturday morning or they won't be able to leave to get home (actual case). The banks are closed. Money transfers take 24 hours. Youíre stuck.
If you gave her a Standard Reserve card, you can spend money from your account to hers, and the funds would be available before morning at a local ATM. Funds are loaded to the cards every six hours, so she may have the $200 available at 6:00 PM.
This also works when you are out of the country, and that water pipe breaks, and your house sitter has to call a plumber (true story). You go to a cyber cafe, transfer funds from your account to hers, and she obtains the funds from a local ATM to pay the plumber.
Why does it work?
Standard Reserve is building a huge worldwide network of Subsidiary Agents (130) whom we partially own. We are also building a network of Syndicated Agents (300) who represent us in various regions of the world. These agents have the ability to transact business on behalf of Standard Reserve, which enables them to write checks locally on their (our) bank account. Since they only need to carry two forms of currency ≠ gold and local currency ≠ they and you don't need to worry about the currency exchange. And to make it easier for everybody, these agents are building a network of exchange and customer acquisition agents who will be available to assist customers on- or off-line in any part of the world. This network now numbers more than 30,000 and is growing rapidly.
Add to that our link into the Mastercard/Cirrus/Maestro ATM/POS network and you have the best of all worlds ≠ safety, speed and convenience! It must be good, as Mastercard approved this program in three weeks, where it normally takes nine months!
At the conference we will go into detail as to how and why this concept works, and why it will soon be the world's first true global currency. You will see the charts and the concepts explained in detail. And you will meet some subsidiary agents who are actually transacting business worldwide as described herein.
The concept has been ten years in the making and only came to fruition the past 15 months. The key to success is the same as it is in retailing -- turning of inventory - gold and dollars (we're turning inventory fourteen times a month!). Subsidiary agents will net $1.6 million to $4 million a year.