Julius Maada Bio, president of Sierra Leone is creating a national, blockchain based credit bureau. All in an effort to “radically transform” the country’s financial inclusion landscape and the entire ecosystem.
In a Partnership with the UN
In fact, the U.N. Capital Development Fund (UNCDF), the U.N. Development Program (UNDP), along Bio and non-profit Kiva announced a project to “modernize the credit bureau.”
For example, the Kiva Protocol, the system that promises the citizens full control of their personal data, will allow the citizens to record all borrowing and repayment transactions on its blockchain. In addition, Sierra Leone has been chosen because it has one credit bureau that serves 2,000 people.
Up to 80% of the citizens of Sierra Leone remain unbanked
“Currently, unbanked people cannot leverage financial transactions from the ‘informal economy,’ such as credit with a local shopkeeper, to build their credit history. The Kiva Protocol will capture a wide range of financial transactions … to help people access the financial services they need, including loans for businesses, education or basic medical services.”
With a blockchain system in place, for example, it will help people retain “secure and complete ownership of their personal data and information.
In short, it’ll help give people much more control of their data and credit scores.
If this program works well, we have to consider the global opportunity
At the moment, 1.7 billion adults cannot access the financial services they need. Two of the major barriers to accessing financial services are a lack of formal identification and a lack of verifiable credit history. However, it’s believed that blockchain technology can help fix the issue.
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