Cardano’s Peer-to-Peer (P2P) Lending in Africa Is Gaining Traction

By Kevin • March 2, 2022 11:47 am • Comments

IOHK, the company behind Cardano, has recently announced that that the first set of loans has now been dispersed to the local network in Kenya.

The launch of these loans is part of Cardano’s RealFi technology which is similar to DeFi in the sense that it will allow for reduced friction between crypto and real world use cases.

The main focus point here is that the company is focusing on introducing peer-to-peer lending across Africa which could be an integral part to allowing more people within the continent to have access to financial services that they didn’t have before.

Trending: Ron’s Basement’s Cat Jasper Reaches $1.5 Million Market Cap Following Launch of Unicorn Fart Dust

With this, it is possible to then close the gap between industrialized countries and developing countries through the use of decentralized financial products or services.

Today.com reports:

Cardano founder Charles Hoskinson revealed that the company plans to introduce peer-to-peer (P2P) lending across Africa this year, starting with Kenya.

This, he believes, is part of an effort to close the gap between industrialized and developing countries.

During a YouTube Livestream from his home in Colorado in late December 2021, Cardano founder Charles Hoskinson discussed the disadvantages of decentralized finance, noting that many users are incredibly frustrated by the low production quality of applications within the DeFi ecosystem.

He also mentioned Cardano’s aspirations to “build a financial operating system” in 2022, which will deliver DeFi services to Africans, as many African countries currently lack financial inclusion.

He noted that Africa has always been a priority for Cardano and that the project intends to expand its influence in the region.

He said, “My goal for the second half of 2022 is to figure out how to put all the pieces together to get an end-to-end microfinance transaction on Cardano.”

This is not the first time that Cardano has been working on partnerships in the Africa region as the company has had a record of collaborations in the year 2021 which include working with the Ethiopian Ministry for Education and the World Mobile in Tanzania.

Each of the projects focus on utilizing crypto and blockchain technology to transform various industries such as music and education.

The company has stated that these partnerships are an important part of a strategy to build a foundation which will eventually allow Cardano to reach its goal to build RealFi.

RealFi will ultimately provide financial services to those who did not previously have access to it and will also provide very good incentives to crypto holders who participate.

This recent news comes along with a long line of developments and progress that the Cardano blockchain has made in the past two years.

Nairametrics reports:

Commenting on the trustless nature of blockchain, Charles noted that the technology has gone beyond being used in payments alone.

Last year, Cardano upgraded its network to have smart contract capabilities which has seen a lot of projects run on its Blockchain.

A top DEX platform, Sundae Swap has launched on the Cardano blockchain with 124.49 million in Total Value Locked (TVL), which has grown by 60% in 30 days.

Notably, blockchain has given users the possibility of participating in inclusive accountability, which eliminates the reliance on any third party, as people can conduct transactions among themselves without any form of fear.

Currently, according to Messari, Cardano is the second largest in terms of transaction volume.

Since the launch of its smart contract, Cardano has been a top three blockchain in terms of transaction volume and in recent weeks, been surpassing that of Ethereum.

Cardano currently sits at the $0.97 price range and holds a bullish outlook for investors despite the recent market slump.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

 

Search ProCoinNews