The sole provider of small bitcoin vouchers for everyday use, Bitcoin platform Azteco has generated $6 million in seed funding, according to a recent press release.
The funding round was orchestrated by Twitter co-founder Jack Dorsey, CEO of mobile payment company Block Inc., with assistance from Lightning Ventures, Hivemind Ventures, Ride Wave Ventures, Aleka Capital, Visary Capital, Gaingels, David Van Der Weele and Sunil Rajaraman.
Azteco said that the funding will support its work to expand financial inclusion to the billions of people worldwide who are experiencing shaky economic conditions. The company's vouchers can be accepted online and at hundreds of thousands of retail locations in over 195 countries.
"This investment is a catalyst to help us achieve our mission of bringing unconditional financial freedom and control to the next billion users," Azteco co-founder Paul Ferguson said in the release. "This funding will fuel our market activation and product refinement efforts, enabling us to reach consumers more effectively, to develop deeply intuitive products and empower individuals worldwide to participate in global commerce regardless of their financial or technical experience level."
Launched in 2014, Azteco determined that over 2 billion people worldwide have a smartphone but no access to traditional financial services. The company's Bitcoin vouchers act as an inexpensive, resilient way for those people to make purchases, access credit and store value, the May 18th release said.
"My contribution to Azteco comes out of a deep respect for their mission," Dorsey said. "The unbanked population is immense. We have the technology and resources to close this gap, but until now, no one has taken that important next step. Azteco is providing so much more than just access to a secure financial system; it is building an ecosystem of financial self-determination that is secure and supported by local communities. I am honored to support them."
Lightning Ventures General Partner Mike Jarmuz said Azteco's success has global implications.
"Azteco is not just an innovative Bitcoin company; it is essential for worldwide adoption of consumer Bitcoin," Jarmuz said in the release. "Its simple, frictionless solution for mobile voucher top-ups benefits those most in need. Azteco's critical mission is to provide access and inclusivity to the often-overlooked and most underserved global demographics. Many individuals lack the proper identification, smartphones, bank accounts or other requirements to navigate the complex and confusing crypto trading platforms. Azteco's solution is very familiar, far more comfortable, and incredibly easy for them to understand."
During a Senate Banking Committee hearing on cryptocurrency held on Feb. 14, Professor Linda Jeng of the Georgetown Institute of Economic Law highlighted crypto's "social value," as something she's seen in action.
"A substantial percentage of adults around the world today lack access to basic banking and financial opportunities," Jeng said. "An oft-cited World Bank report found that 1.4 billion people worldwide are unbanked. Despite progress, almost 30% of individuals in developing countries have no bank accounts. Although lack of access is more significant in developing countries, it is also common in advanced economies."
