Blockchain Disrupts Kenya’s Informal Economy
Kenya is one African country that direly needs financial reform. However, to introduce such sea changes, the country first needs to embrace new technologies. And this is where blockchain technology is expected to play a crucial role. Kenya’s informal economy, which currently has a $20 billion value, will certainly benefit from blockchain-based immutable ledgers and other tools.
For instance, a Kenyan company dealing in fresh produce buys and sells its goods using blockchain technology to track all vendor transactions.
Kenya’s informal economy
Most African nations show some interesting characteristics and ways of functioning when it comes to matters of finance. Corruption and political instability are rampant and these factors cause Western banks to shy away from them. Moreover, their local financial institutions have been plagued by a number of problems over the last few years. That’s why financial inclusion continues to be one of the most major concerns in countries like Kenya.
How would blockchain solutions help?
Given the present situation, it appears that blockchain technology could be a panacea to all these problems. Blockchain allows businesses to evolve and build up immutable records. Thus, in a situation devoid of official credit-scoring, such transparent ledgers would offer many benefits.
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