Hashcash Consultant, a United States-based development company has revealed its plans and involvement in a partnership agreement with local financial institutions in Nigeria, which is the giant of Africa, to import blockchain solutions to the challenges characterized with the country’s financial sector.
The development company intends to use the blockchain technology to solve the financial predicaments of a significant fragment of the over 180 million population of Nigerian citizens who have been excluded from the financial system by capitalizing on the mobile phone usage in the West African nation.
The Result of Survey in Nigeria’s Remote Areas
The Hashcash team reportedly carried out a survey in Nigeria which has brought results showing that the remote areas in the country are going through financial exclusion. This report shows that practically all those living in remote areas do have access to essential financial services such as a bank account thereby relying on the traditional banking system.
The reported stated that the reason behind the deprivation is the primitive name of the financial system as banks still depend on the bullion van system to transport the fiat currency to various destination which is often accompanied by multiple security issues and also the fact that a large percentage of the 180 Nigerian population do not have a bank account.
The reports also proffered certain solutions in its reports stating that if the cause of this financial exclusion in these areas is due to inability to access basic tech devices such as a computer and others. There could be a solution using the mobile phone approach as it is available in these places.
Benefits of Blockchain-based Banking Solution Using Mobile Phones
Apparently, there are various benefits of importing the blockchain- based solution to the Nigerian financial sector as it has perfectly worked in other countries, the Nigerian economy might be no different.
The blockchain-based bank accounts will generally allow for easy fund transfers by persons living in this remote areas, and they would necessarily need a “four walls” financial system, it would also solve the bullion van issues which is prone to risks of insurgencies.
Another benefit of the blockchain technology is that it would solve one of the most relevant economic and political problems of the country which is corruption as its transparency would leave corrupt officers and other unscrupulous persons questionable and make them accountable for every penny in their custody.
The company is not planning to work in exclusion as it would reduce the pace at which the company is supposed to go, Hashcash intends to work with existing traditional financial institutions to establish a mobile-enabled blockchain solution so as to cater for the financially excluded individuals and unsatisfied customers of the conventional financial institutions.