The technology is, however, meeting resistance in the financial front with regulator citing money laundering fears and theft by online crooks.
The Central Bank Governor Patrick Njoroge has rejected digital currencies use saying bitcoins operations are conducted on an unregulated regimes that expose Kenyans to cyber fraudsters.
In an interview, financial markets consultant, Ally-Khan Satchu urged the Kenyan Government to reconsider its stance on digital payment platforms and blockchain use saying it could no longer be ignored as a mode of funds transfer.
“Essentially blockchain platform payments and crypto currencies are being mainstreamed and that is why we have been seeing the material share price appreciation of leading blockchain platform provider Bitcoin,” he said.
Mr Satchu, who heads Rich Management Services, said Kenyans need to be sensitised on how digital payments work to enable them take part in blockchain investments.
“The Kenyan investor has certainly internalised the crypto currency universe. I think we need to review our regulatory stance and seek a way to carve out ahead of the curve position commensurate with our mobile money leadership,” he said.
On the insurance front, America Insurance Group (AIG) conducted a global BT pilot where it jointly with banking group StanChat, ran a simulated cover offering where they processed and attended to their Kenyan, Singaporean and American policy holders needs on a unified platform that linked AIG and StanChat to agents and financial institutions on realtime.
This saw payments made on time and policies renewed automatically upon payment of premiums, a process that its proponent said could help reduce company expenses while eliminating the need for brick and mortar establishments in individual countries.
Kenya’s four year old BT firm, BitPesa, which todate has raised Sh1 billion to power its expansion across Africa, Europe and Middle East, said BT payments were highly favoured by multinationals with local subsidiaries saving them hefty transfer fees usually charged on clients sending money across borders through local banks.
With BT currency, no world currency is dominant and its operations are dictated by market forces and not whims of any regulatory regime.
Among leading financial BT firms dealing in digital cash include BITCOIN, Ripple and Ethereum.
The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on the internet.
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