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Common currency for Africa could be built on Cardano, says Charles Hoskinson

  • IOHK’s CEO, Charles Hoskinson, predicts the creation of a pan-African currency that could be built on Cardano, if the early adoption of cryptocurrency is pursued. 
  • IOHK aims to give 3 billion unbanked people living in Africa access to the financial system. 

The creator of Cardano and CEO of Input Output Hong Kong (IOHK), Charles Hoskinson, published a video update talking about the future of Cardano and its adoption in Africa. Hoskinson referred to the continent as Cardano’s “final frontier” and highlighted the enormous potential of that region.

A new financial system built on Cardano

Hoskinson referred to one of the projects IOHK is developing that could bring great benefits to Africa: fertilizer vouchers. This solution could positively impact the supply chain in the continent:

Our own company, for example, in Ethiopia right now we’re bidding on a project for six million small holder farmers for fertilizer vouchers.

The fertilizer voucher project is part of an initiative to provide African farmers with tools to help them increase their production. Fertilizer vouchers could be a way to improve the distribution of resources to African farmers. Hoskinson said that it is possible to build an identity system and from there build a system of reputation, a market, collective decisions, distribution of production, without the need for government involvement:

In addition, it allows us to create all kinds of new financial products that can dramatically improve the lives of the poorest, while enriching developing nations. For example, fertilizer coupons have a high repayment rate ranging from 15% to 25% return for people who take the risk. So, we could package (these coupons) into assets that can be sold in regulated financial markets (…).

Similarly, Hoskinson said the continent is an exciting place to do business. There are countries in the region with a population under 30 years old that is around 70%. These young people are aware of technological advances,  and are “begging for system change”.

In that sense, Hoskinson said IOHK is focused on building a new financial system, along with Cardano. This differentiates IOHK from other projects like Tezos, Ethereum and EOS. Creating a new financial system is indirectly part of the solutions IOHK is working on, such as fertilizer vouchers:

When you build a voucher system, you’re actually building a payment system. And actually you’re building an identity system. And then somewhere along the way you’re building a census system to get to know who people are. And then somewhere along the way you’re building a voting system. And then somewhere along the way you’re going to tether it to output, so you’re building a supply chain system for agricultural goods.

This new system will give nearly 3 billion unbanked people access to a financial market. Finally, Hoskinson said a pan-African currency is likely to emerge in the next 30 years. In addition, he said this currency could be a cryptocurrency built on the Cardano blockchain. However, Hoskinson said that for this to happen there must be an adoption and an effort to have a very early foothold in Africa.

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Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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