How Blockchain Is Finally Getting Africa On The Net
Parents queuing up to pay school fees in cash, moneylenders charging extortionate prices and savings kept under mattresses – these are some of the things the people of Africa have had to resort to as financial technology has not yet developed. fully expanded in the developing continent.
According to Statista, only 48 percent of the African population has access to banking services in 2022. Bills as the first entry point into the formal financial system will face a huge setback for its citizens as they will be forced to conduct transactions that are not only inconvenient and wasteful, but often risky.
By having access to a financial account instead of just cash, users can take control of their finances by offering ways to manage money. By using bills instead of cash, both governments and businesses can help get tens of millions of adults into the digitized financial system.
According to a report from the World Bank, digitizing payments for agricultural goods only would reduce the number of unbanked goods by about 125 million, including 16 million in Nigeria. In Kenya, Tanzania and Uganda, more than 10% of adults still receive agricultural payments.
A policy note on mobile money from the Global Findex team found huge financial potential for Sub-Saharan Africa. Specifically, it found that regionally 350 million adults don’t have an account, but 155 million said they have their own cell phone, while 200 million said they can access it at home. Most are in West Africa, where mobile money has yet to take off, but 40 million live in East Africa, which has one of the world’s highest mobile money account ownership rates.
Banking without a bank account
In addition to the limited access of African citizens to their financial crisis, estimated at 494 million people in sub-Saharan Africa do not have any form of legal identification. Not only does this lack of connectivity mean that disconnected people can’t communicate with anyone outside of their environment, but it also contributes to poor health care, low levels of education and poverty in general.
In response, officials on the continent are beginning to turn to a particular digital technology with transformative potential: the blockchain. By leveraging the power of the decentralized blockchains, the metaverse can give African citizens access to both finances and identifications through biometric digital identification (ID) systems. One company in particular, which believes that internet access is a human right, World mobiledoes exactly this.
Inspired by pioneers throughout history, the company’s core mission is to lead a global movement toward digital inclusion. It plans to achieve this by deploying a dynamic hybrid mobile network composed of air and ground assets, to connect the disconnected and protect the non-bankers.
“Half the world is still disconnected. The world of telecommunications needs to be restarted. Traditional networks with legacy systems and archaic business models do nothing to address the problem,” the company said on its website.
The future of mobile networks
World Mobile’s hybrid network, which is currently rolling out its technology in Africa and the world, aims to connect the networks that have left traditional networks offline. “With access to the Internet, subscribers gain a self-sovereign identity and all the opportunities that connectivity offers, from digital currencies to education and more,” the company said.
Not only will subscribers in Africa have access to the internet, but it will also be affordable, fair and sustainable. The self-managed and decentralized technology allows users to connect without compromising their privacy. Subscribers can own their own data and have their own identity, allowing them to access services they were previously excluded from, such as banking, insurance, lending and savings.
In 2022, Africa will still be drastically behind developing countries in access to financial technology. Thanks to the rise of blockchain technology, companies like World Mobile are pioneering platforms that free African citizens’ access to financial technology through access to affordable, fair and sustainable services. It won’t be long before the developing continent joins the rest of the world on the path to financial freedom.