There are a number of reasons why you should not convert the Lumi (AKL) into other digital assets on the Swifin Platform. The Lumi for example is offered on the Swifin platform solely for use on the integrated marketplace to buy and sell products and services online in a way that ensures equitable access for all to the online digital marketplace.

All transaction fees in AKL are covered in full by the Central Solar Reserve Bank (CSRB) or the African Diaspora Central Bank (ADCB) until September 2023. This is the reason why all AKL transactions are free of cost to the customer at present. This means the payee (Receiver) receives exactly the amount sent by the Payer (Sender).

At present you may convert AKL into GBX (if allowed) and then subsequently you can convert GBX into EUX, USX or back to AKL in order to pay for goods and services provided by merchants and other members of the Swifin Platform. Each time you convert, even though there are no direct conversion fees, your conversion will always be subject to a buy/sell spread which can range from 1% to 5% subject to market prices. When you convert AKL into GBX you are effectively selling your AKL into the Swifin Platform and using the proceeds to buy GBX in a single transaction. In order to minimise adverse movements in the prices of the digital assets on the Swifin Platform against AKL, the Swifin Platform can only deliver the original asset issued by CSRB/ADCB (i.e AKL) so in any case you will need to convert back to AKL if you wish to use your balance off the the Swifin Platform for any reason (including invoice payments) and subject to the liquidity provisions for such transactions by ADCB, AKL Market makers or any independent liquidity providers.

In order to ensure an efficient and cost effective way to make payments directly from your AKL balance to settle invoices for products and services priced in any other currency in the world without converting and losing value, you can make payments in AKL and specify the amount to be paid in your currency of choice (please note that in such cases the underlying value transferred is always AKL and both parties to the transaction must be members of the platform). Please see the article on Make a payment in AKL with amount specified in any currency.

All your transactions in AKL are currently free of cost until September 2023. However when you convert your balance from AKL into GBX or any other digital asset on the Swifin Platform your transactions automatically become subject to standard platform transaction fees. For the majority of peer to peer transactions this can be upto 0.099 + 1.2% unless otherwise negotiated and implemented. For most customers transacting exclusively in AKL, this is a considerable saving so it pays to keep your stimulus payments in AKL and to make all your payments from your AKL Account.

Also because the prices of traded digital assets can go up as well as go down, you will always be subject to a fluctuation in value of any digital asset you hold compared to its value in another digital asset. For example, when you convert AKL into GBX, the value of your GBX balance may go up or go down relative to the original AKL balance. If you are converting for speculative reasons in the hope that the original value increases (which is possible if the gain exceeds conversion costs) you must also be aware that the value may go down. This is particularly likely for digital assets linked to weaker emerging market currencies, some of which have been shown to systematically decline in value compared to others like USD, EUR and GBP for example.

It is therefore better for customers to leave their balances in AKL instead of converting to other digital assets. Real time conversion is however available to assist individuals and businesses in completing transactions or purchasing goods and services on the platform in a way that meets their respective needs as part of the commitment to deliver access to digital financial services to all.
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