Charles Hoskinson, IOHK CEO and Founder of Cardano, had recently collaborated with the Ethiopian government to roll out Enterprise Blockchain Framework, in a bid to develop a new digital asset that provides a secure and reliable payment method. In a recent AMA session, Hoskinson stated that for local currencies with very low value, a digitized representation would solve a lot of financial problems.
Talking about Cardano’s plans for the un-banked population or for people using cash-only financial services due to economic bankruptcy or other reasons, Hoskinson said,
“The unbanked are not poor necessarily they still have the ability to produce wealth they still have local wealth whether it be knowledge or land or raw resources so there’s something of value”
The first step to overcoming this, according to the Founder, is to understand the “local value” and then “create liquidity within that source” and lastly, “bringing the liquidity to the global market.”
The foundational component to foraying into an underdeveloped country is understanding the people and their social graph. He asserted that such data for such places exists, but in fragmented form. The data sets are difficult to unify in such cases. Hoskinson said,
“.. so before you attempt to Bank anybody the really the first step is to attempt to identify people and get an understanding who people are and do that in a very low-cost way”
According to the CEO, this can be done in a “digital way” so that information is easily retrievable. He added,
“Mine and do all kinds of things now once you have that then likely if you’ve done it correctly you also have a public/private key pair that is associated with the identity and then you can use that as a route for a wallet as for some sort of a payment system that’s cryptocurrency based”
After the local currency of the country or representation of that currency is digitized, Hoskinson asserted that it is incredibly easy to get local buy-in and get people paid. The Founder also claimed that this is a superior system to the systems that are in place in the developing world.