Digital Currency & Financial Inclusion in Africa

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    20-Jun-2015

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Digital currency and digital currency protocols combine enable financial inclusion efforts tremendously. They democratize finance by empowering everyone and anyone financially. Africa is well poised to leapfrog.

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<ul><li> 1. AFRICAN DIGITAL CURRENCY ASSOCIATION (ADCA) Digital currencies &amp; financial inclusion @African_DCA www.Africandca.org info@africandca.org </li></ul> <p> 2. ADCA Digital representations of value and primarily for value exchange. + Fully backed by physical world equivalent: Egold, Digicash, and Mobile Money. + Not backed by reserves. Based on perceived value and trust by community: virtual currencies, bonga points, linden dollars, Digital currency technologies are also platforms/protocols, such as the internet on which creative products &amp; services are built on: Distributed exchanges, Distributed Autonomous Organizations Financial exclusion is a process whereby people encounter difficulties accessing and/or using financial services and products in the mainstream market that are appropriate to their needs. Financial inclusion seeks to address this using counter measures. What are digital currencies? What is financial Inclusion? 3. Digital currency enables financial inclusion + Financial access + Financial Services + Credit access + Payment Systems + Remittances 4. FINANCIAL ACCESS + Broader financial access channels: online, mobile networks, vending machines, ATMs + Inclusive financial access: non- discriminatory access based on age, gender, income, region etc. + Increased access to global markets 5. FINANCIAL SERVICES Financial services are inexpensively and efficiently availed to previously excluded populace: + Decentralized exchanges direct access to markets, remote distribution of financial market services + Diversified financial products precious metals such as gold e.g. Chama Dhahabu, Egold + Financial services on distributed channels Insurance, pension, banking, investment vehicles 6. CREDIT LINES + Increased sources of credit and at lower costs through access to global credit markets, peer-to- peer lending networks e.g. Kiva, Chama Pesa and crowd funding projects on a local and global scale. + Diverse array of credit options: short/long term, secured/unsecured, consumer/investment + Individuals can also issue legally binding financial contracts and debt products: issue equity, loans and digital bearer instruments 7. PAYMENTS SYSTEMS + Extremely low transaction costs are possible such as 0.1% on bitcoin by cutting out costly middlemen risks &amp; costs. There is less friction of money transfer. + Micro, mini and nano payments and transfers are made possible: $0.00025 at competitive low costs 8. REMITTANCES + International &amp; regional remittances move faster to recipients, + Move at a lower cost + Move directly to beneficiaries. + E.g Bitpesa, Coincove 9. WHATS IN IT FOR STAKEHOLDERS? + Availability of key data and metrics that can be leveraged: For more effective monetary policy Data availability lowers risks and cost of credit Live data feeds can be analyzed e.g. quantum analytics Less KYC burden + A broader market for broader innovative financial products. + Higher velocity and mobility of money together with their benefits. + Enable effective tax administration + Enable poverty reduction efforts. 10. OUR MISSION + Promote the value proposition of digital currency through knowledge dissemination and adoption among: the community, industry participants, investors, regulators, tech developers, businesses, entrepreneurs &amp; merchants. + Promote leveraging of digital currency technology to solve antiquated problems across multiple sectors: community, business &amp; finance, tech </p>

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