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NGOs remodel microfinance via blockchain

ANKARA – Anadolu Agency

NGOs remodel microfinance via blockchain

A Turkish NGO will use blockchain technology to allow entrepreneurs to be funded by social investors anywhere in the world, said the head of the foundation on August 16th.

In an exclusive interview with Anadolu Agency, Aziz Akgül, head of the Turkish Waste Reduction Foundation (TİSVA), stated that blockchain-based microfinance is inevitable not only for the future of Turkey but also for Turkey's future. for the whole world.

"We want to offer microcredit to 3.5 million people using cryptocurrency and the electronic market in Turkey by 2030," he added.

The main objective of TİSVA – which oversees the Turkish Grameen Microfinance Program (TGMP) – in launching such a project is to solve the problems of the global microcredit community in finding financial sources for the poor.

The Turkish microfinance program Grameen is a non-profit economic foundation that offers "microcredit" services to help reduce poverty in Turkey, according to their website.

"TGMP had the idea that it creates an alternative financing model for social enterprises to alleviate poverty through the blockchain," said Akgül.

Pointing to the growing popularity of the use of cryptocurrencies like Facebook's Libra, Akgül said that the world has entered a new era in which the number of banknotes in circulation will decrease.

"The size of the market will not be limited to Turkey," he said. "The initiative will be extended to micro-entrepreneurs from all over the world".

Citing a report published by Oxfam, an international confederation of NGOs working to reduce poverty, Akgul stated that the wealth of the 26 richest people in the world was equal to that of 3.8 billion poorest people in 2018.

"We aim to have an impact on the lives of these people through the project", adding that the financial inclusion as a primary concern of the project is an important step towards reducing and ending poverty ".

He suggested that blockchain technology will eventually allow anyone with an Internet connection to have access to a wide range of poverty reduction services at a fraction of the cost.

Blockchain is a database of financial transactions that is saved on multiple computers and grows constantly as new transactions or "blocks" are added to it, forming a continuous and public data chain.

He also explained that in the project, 300 million MicroCreditCoins (MCC tokens) and mobile wallets were produced in the blockchain technology of Ethereum, the popular cryptocurrency based on the use of tokens, which they can be bought, sold or exchanged.

blockchain, Turkey, NGO

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