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Kenya Launches ‘Local Currencies’ As a Way to Use Blockchain

By Luke Flowers – Cryptocurrency Speculator

Some of Kenya's poor communities may finally have found the solution to their lack of physical cash with the country introducing blockchain-backed "local currencies." One can even expect that eventually, the people may begin to buy and sell Bitcoin as they learn to adopt the new technology.

According to Reuters, Kenya has been testing new models for blockchain and crypto adoption to encourage those to buy and sell cryptocurrency. Not only will the new local currencies be used, but also combined with a similar system to that of popular mobile money transfer system M-Pesa. Though this will be on a blockchain and without Kenyan shillings. The system enables people to generate credit by offering goods and services and also spend that credit using their mobile phones, much like many projects where you can sell crypto or transact whilst on the go.

In addition, local community donors can keep track of how their aid is being used, so that they can adjust it in real-time. The report also states that the overall system is relatively affordable to run as it costs approximately $40,000 yearly for service and support across the entire country after initially receiving at least $1m in initial startup funding and other donations.

This opportunity couldn't come at a better time as Kenya houses over 49 million people and its poorest slum communities are in desperate need of services. Even if they do have services, there's little way to pay for them. Details have not been released on how this currency will be distributed and it is unlikely that just anyone would be able to buy cryptocurrency, or the local currency on the chain.

The article reports that barter, along with loan groups and loan savings aren't exactly efficient as its very hard to track what is owed and by whom, whereas transactions are typically kept in a locked box and written on paper. With the emergence of blockchain and Distributed Ledger Technology (DLT), these transactions will be immutably recorded and publicly verifiable, the same as when buying Bitcoin.

Choose to buy Bitcoin UK through your trusted Bitcoin broker by heading over to our ‘Buy Coins’ tab

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