The NAKA Card and the Freedom to Pay

Learn how permissionless spending and instant liquidity for assets like real estate or precious metals can help your customers gain financial freedom.
By Naka
June 10, 2024

Whether you’re looking for a solution that allows your customers to be the custodians of their own financial well-being or a solution that allows your company to offer its own unique set of advantages and incentives in the blockchain playground, the only true limit to what it offers is imagination. The NAKA Card can be issued by all kinds of businesses, for all kinds of purposes. 

But how exactly is this solution different from more traditional forms of payment?

One of the essential differing factors is its freedom. The NAKA Card allows for permissionless spending and it can provide instant liquidity to all kinds of non-liquid assets.

Here’s how:

The NAKA Card and Permissionless Spending

Permissionless spending refers to the ability to use funds without the need for intermediaries such as banks or other financial institutions. This feature is at the heart of the NAKA Card, offering users a range of benefits:

  1. Self-Custody and Security
    • Direct Control: Users have full control over their funds stored on the NAKA Card, eliminating the need for third-party custodians. This ensures personal autonomy over financial assets and allows for the unbanked and underbanked to start their financial journeys.
    • Blockchain-Based Security: The underlying blockchain technology provides a tamper-proof ledger, enhancing the security of transactions and preventing unauthorized access.
  2. Global Acceptance
    • EMV Compatibility: The NAKA Card’s compatibility with the EMV standard means merchants can integrate it wherever Europay, MasterCard, and VISA are accepted. This broad acceptance facilitates everyday use, making it convenient for users worldwide, while not depending on traditional financial actors.
  3. Financial Inclusion
    • Access for the Unbanked: The NAKA Card is designed to include individuals without access to traditional banking services. By providing a self-custody option, it allows the unbanked population to engage in the financial system securely and autonomously.
    • Easy Issuance: The Card can be issued by both custodial (bank account) and non-custodial (crypto wallet) providers, making it accessible and easy to integrate into various financial ecosystems.
  4. Advanced Financial Features
    • Smart Contracts: The integration with smart contracts allows for automated and conditional transactions. This can be useful for recurring payments, investment management, and other financial operations requiring precision and automation, all the while in a trustless environment.

The NAKA Card’s permissionless spending capability is a significant advancement in digital finance. By leveraging blockchain technology and providing global usability, it empowers users with unprecedented control and flexibility over their financial assets.

NAKA has a prominent body of work in regions like LATAM, where a significant portion of the population is unbanked or underbanked. That means the traditional financial industry is unable or unwilling to provide a full suite of financial services to the population that needs them.

This means large swathes of the population can’t access a loan, can’t receive remittances from family, and in some situations may even be excluded from retiring with a pension.

The NAKA Card will provide everyone, no matter what their relationship with finances is, with the chance to enjoy a full and fruitful financial life.

But even those who do have access to the full gamut of finance can find great benefits in a card such as this. 

Liquidity and Non-Liquid Assets

Even the most advanced traditional financial systems have trouble making non-liquid assets work for their holders. In normal circumstances, someone that is in the possession of an asset like, for example, a valuable piece of real estate, will have to sell it in its totality in order to access even a small percentage of its value in usable cash, exposing the rest to inflation and foregoing any valuation it may incur. The NAKA Card transforms the concept of liquidity by enabling users instant and seamless access to any kind of tokenized asset. 

Non-liquid assets include a wide range of valuable holdings that are not easily converted into cash without a significant loss in value. We’re not just speaking of tokenizing real estate. Examples of non-liquid assets include precious metals, fine art, cryptocurrencies, and more.

  1. Tokenized Asset Integration
    • Tokenization Process: Non-liquid assets can be tokenized, which means converting them into digital tokens that represent ownership or value of the underlying asset. This process makes it possible to transfer and manage these assets on a blockchain.
    • Asset Diversity: Users can link various tokenized assets to their NAKA Card, such as real estate tokens, gold-backed tokens, and cryptocurrency holdings. This integration allows users to leverage a broad spectrum of asset types for daily transactions.
  2. Protecting Against Inflation
    • Inflation-Resistant Storage: By keeping funds on the blockchain until the point of transaction, the NAKA Card helps protect users from inflation. Only the amount needed for a specific transaction is converted to fiat currency, minimizing exposure to inflationary pressures.
    • Stable Asset Management: Users can maintain the value of their non-liquid assets without the need to liquidate them during times of high inflation, thus preserving their long-term investment potential.
  3. Immediate Liquidity Access
    • Seamless Spending: The NAKA Card allows users to spend their tokenized assets directly as fiat currency at any participating EMV-compatible terminal. This seamless spending capability provides immediate liquidity without the need for complex conversions or sales processes.
    • Flexible Financial Planning: Access to immediate liquidity enables better financial planning and management, allowing users to meet their cash flow needs while maintaining their investment portfolios.
  4. Financial Inclusion and Empowerment
    • Unbanked and Underbanked Solutions: The NAKA Card provides a viable financial solution for the unbanked and underbanked populations. By tokenizing assets, individuals can gain access to liquidity and financial services without relying on traditional banking systems.
    • Enhanced Autonomy: Users can manage their assets and liquidity needs independently, reducing dependence on banks and other financial intermediaries.

The NAKA Card’s ability to provide liquidity for non-liquid assets represents a significant innovation in financial technology. By enabling users to spend tokenized assets as easily as cash, it bridges the gap between investment holdings and everyday financial needs, making it a powerful tool for both asset management and financial inclusion.

If you feel like your company could benefit from issuing the NAKA Card to your clients, making use of any of the features mentioned in this article, get in touch with our team.

Through the NAKA Issuers Program, we can develop a solution that fits the profile you seek.