The United Nations is set to give Sierra Leone a helping hand as it launches the Kiva project intended to use blockchain technology to help civilians get banked. The not for profit project will be developing over the next 3 years with the aim of getting the unbanked onto a basic financial platform.
The country which has a limited credit infrastructure comprising of a solo credit bureau serving only 2000 customers throughout the country, will see blockchain tech introduced allowing civilians access to digital wallets, credit ratings and even loan services.
“Through this implementation, Sierra Leone is setting out to build one of the most advanced, secure credit bureaus. It could serve as a model for both developing and developed nations in the future and has the potential to radically change the landscape of financial inclusion.”
UNCDF’s deputy executive secretary – Xavier Michon
The UN has chosen the nation due to its levels on banking which remain less than 1%. Among the lowest of any African nation, the Kiva Project will also allow information to be shared with third party financial institutions before distributing loans etc. All information will be able to be controlled by the citizens as data remains on the blockchain. The information is also set to aid in loan applications as financial history will be recorded, in terms of transactions and loan repayments etc.
To conclude, Sierra Leone will be receiving aid from the United nations to develop its economy. Using blockchain technology to power its very own Kiva Protocol. The protocol is set to introduce basic banking capabilities to the majority of the country which remains unbanked. Allowing civilians effective access to government loans, the technology is set to act as a ledger for both the government and even third parties storying credit ratings and even repayment information for loans.