United Nations, UN has partnered Sierra Leone to create a blockchain based identification system. The new nonprofit tech to be built and launched will attend to the banking needs of Sierra Leoneans.
The Large Market For Cryptocurrency and Blockchain Tech In Africa
The blockchain technology and cryptocurrency have been much concentrated on the advanced world in comparison to the third world countries. Meanwhile, the inherent qualities of the technologies are more vital to the third world as a tool for transforming most of their difficulties with basic need.
Notably, the African continent is ridden with poverty and high inflation in some countries. Also, there are countries with the poor banking system and a vast unbanked population that the blockchain tech and cryptocurrency could be introduced to solve their needs.
Further, some regions of Africa are already getting liberation in performing a transaction, storage of value among others with the blockchain tech and cryptocurrency. Zimbabweans have been driven in mass to cryptocurrency due to the poor economy and the tolling effect of high inflation in the country despite a ban.
Also, young people in Africa makes the continent the perfect ground to exploit its energy for the blockchain and cryptocurrency industry.
The New Partnership
Exploiting the energies of the African continent and using the blockchain technology to attend to the needs of Africans has seen UN choose Sierra Leone for the introduction of blockchain based ID system that will attend to the populace banking needs.
This involves some divisions of the United Nations working alongside Sierra Leone government to launch a non-profit technology for its citizens.
The division of the United Nations involved are The UN Development Program (UNDP) and the UN Capital Development Fund (UNCDF), participating alongside the President of Sierra Leone, Julius Maada. The identification system will be addressing the problems related to the banking system, as it will modernize the credit bureau.
Notably, the choice of Sierra Leone by UN was spurred by the status of the credit bureau in the country. The country presently has a single credit bureau that cares for the need of about 2,000 people. This is under 1% of the population of the country, and also over 80% of the citizens of the country does not have a bank account.
The introduction of this new system could lead to the improvement of the economy of the country, as a digital wallet that will address identification and also credit facilities to businesses in the country will be featured.