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Two of the United Nations wings are joining the government of Sierra Leone to build a blockchain-based identification system for their seven million people.
The United Nations Capital Development Fund (UNDCF) and the United Nations Development Program (UNDP) have partnered with Kiva, a non-technology. Kiva will lend its institutional protocol with the same name to implement the "Credit Bureau Of The Future". It would allow the citizens of Sierra Leone to have a complete and secure ownership of their identity, similar to blockchain activities in a decentralized network such as Bitcoin.
Kiva has worked without blockchain for over 13 years. And even without the distributed ledger, the nonprofit organization managed to finance more than $ 1.2 billion in loans to people in more than 80 countries. Their Kiva protocol is a new step in the direction of allowing advanced access to unbanked banks, beginning with Sierra Leone, which desperately needs these innovations. Xavier Michon, deputy executive secretary of the UNCDF, has accepted.
"Through this implementation, Sierra Leone is looking to build one of the most advanced and secure credit bureaus, "he said." It could serve as a model for developing and developing nations in the future and has the potential to radically change the landscape of financial inclusion.
At this date, 80% of Sierra Leone citizens do not have access to a formal identification system. It is particularly problematic for people involved in start-ups and small businesses that are continually looking for capital to launch or expand services. In the absence of formal identity and credit history, these people can not access the traditional financial system. In one example, even an important business man was not able to raise 300 million (over $ 350, or USD) for commercial expansion in Dubai. Reason: he did not have a credit history.
The government of Sierra Leone, in its previous efforts, has launched a credit reference office, but this alone could not contribute to the financial inclusion of people with absolutely no credit history. A Kiva blockchain-based identification system could then improve things on the ground by granting under-the-counter and unscrupulous people their own digital identity.
"With this partnership in Sierra LeoneWe hope to draw a path towards a global identity system and a federated credit history, "said Kiva's CEO Neville Crawley. "This can unlock capital for the populations that need it most, allowing lenders to massively increase the services and flow of funds for the unbanked of the world."
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