The president of Sierra Leone, Julius Maada Bio, has announced a new initiative to create a national credit office based on the blockchain. The announcement took place at the 73rd session of the U.N. General Assembly. (UNGA) Thursday, September 27th.
The president presented the project as ready to "radically transform" the landscape of the country's financial inclusion. It is said that the initiative is the result of a partnership between the non-profit technology Kiva, the Capital Development Fund U.N. (UNCDF) and the Development Program for the U.N. (UNDP).
At the center is a DLT (distributed ledger) system, called the "Kiva Protocol", designed to create a secure national digital identification system for citizens.
The new system aims to address two major obstacles that many citizens face when trying to access financial services – this being a lack of both formal identification and a verifiable credit history. As outlined in the press release:
"Currently, unallocated people can not take advantage of" informal economy "financial transactions, such as credit with a local shopkeeper, to build their credit history.The Kiva protocol will capture a wide range of financial transactions … to help people to access the financial services they need, including loans for businesses, education or basic medical services. "
The use of a blockchain system will also ensure that the citizens of the country maintain "the secure and complete ownership of their personal data and information", as it offers a distributed alternative to store the identity data of individuals in silos of proprietary and centralized data.
Xavier Michon, deputy executive secretary of the UNCDF, said the new system "could serve as a model for developing nations and those developed in the future" and will represent one of the most advanced and secure credit bureaus in existence.
Prior to this project, Kiva says it has already funded over $ 1.2 billion in funds for people in over 80 countries and is currently working to build a blockchain-based system to record these transactions.
For its part, the U.N. has been exploring for a long time multiple cases of use of mostly humanitarian blockchains, starting with its use of the Ethereum blockchain to transfer crypt-based coupons to refugees in Syria.
Earlier this month, Cointelegraph reported that the Celsius Network blockchain loan and loan platform will manage the Sustainable Development Goals (SDG Impact Fund) Impact Fund in the context of the initiative for the sustainable development goals of UN