The United Nation currently agreed to build a blockchain-based ID system with SIerra Leone government. The UN Capital Development Fund (UNDCF) and the UN Development Program (UNDP) have established a partnership with a non-profitable technology, Kiva. Kiva will provide its institutional protocol to apply for the “Credit Bureau of the Future” under the same name. Sierra Leone citizens to own a complete and secure ownership of their identities with the new system.
Kiva was running without blockchain for more than 13 years and with no distributed ledger; however, they were able to manage more than $1.2 billion in loans for people in more than 80 countries with the nonprofit crowdfund. The Kiva protocol in this current movement with Sierra Leone, is a new movement to validate advanced banking access to the unbanked. Xavier Michon, Deputy Executive Secretary of UNCDF also agreed and commented that Sierra Leone is building up one of the newest and advanced secure credit bureaus which can be a great example for developing and developed nations to consider changes in financial inclusions.
80% of Sierra Leone citizens could not access to their identification system. It was difficult for startups and small businesses who are searching investment or expand services. Moreover, people cannot access the mainstream financial system. The Sierra Leone government have put efforts to bring up a Credit Reference Bureau but it was not helpful for people with absolutely zero credit history.
Therefore, the Kiva protocol on ID system will boost the system by granting underbanked and unbanked people with digital identities. Neville Crawley, the CEO of Kiva, said that as a Sierra Leone becomes a starting point, Kiva hopes to build a way to a system of global identity and federated credit history. If then, it will free capital for those who need and allow lenders to greatly increase services and the flow of funds to the world’s unbanked.
Author: Jieun Lee