Bitange Ndemo on why Africa should move quickly in adopting blockchain technologies
In 2019, Kenyan blockchain task-force put in place by the government presented their report, calling for the country to invest in blockchain, artificial intelligence infrastructure and skills and to regulate the two technologies. Two years later, CNBC Africa spoke with the Chairman of the task-force, Bitange Ndemo, to get an in-depth of what has been achieved and the changes put in place in the space.
Tue, 26 Oct 2021 10:22:18 GMT
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AI Generated Summary
- Significant progress in Kenya following the recommendations of the blockchain task force, with the private sector leveraging innovations like cryptocurrencies and AI for financial inclusion
- Concern over the slow pace of adoption of emerging technologies in other African countries, urging governments to build capacity and not fall behind
- Emphasis on the diverse applications of cryptocurrencies beyond monetary value, highlighting the opportunity for Africa to lead in asset-backed digital currencies leveraging its abundant resources
Africa is being urged to quickly adopt blockchain and artificial intelligence (AI) technologies to drive economic growth and address pressing issues like corruption. In a recent interview with CNBC Africa, Bitange Ndemo, the Chairman of the Kenyan blockchain task force, emphasized the need for African countries to invest in and regulate these emerging technologies. The task force, established in 2019, recommended that Africa focus on implementing blockchain in government registries and developing central bank digital currencies. Ndemo highlighted the importance of building capacity and embracing innovation to propel the continent forward in the fourth industrial revolution.
Since the task force's report, significant progress has been made in Kenya, with the private sector taking advantage of the recommendations. The Capital Markets Authority established a sandbox to foster innovation, leading to the use of cryptocurrencies to provide financing to underserved micro, small, and medium enterprises. Additionally, artificial intelligence is being leveraged by mobile money lenders to offer non-collateralized loans, promoting financial inclusion in a way traditional banks have not previously done.
While progress is being made in Kenya, Ndemo expressed concern over the slow pace of adoption in other African countries. He cited South Africa as an example of a nation taking steps to embrace the emerging tech space. Ndemo urged African governments to build capacity, conduct tests, and not fall behind in the rapidly evolving technological landscape. He emphasized the positive impacts of blockchain in sectors like agriculture and finance, urging the continent to seize the opportunities presented by these technologies.
Addressing the rise of cryptocurrencies in Africa, Ndemo clarified that their applications extend beyond monetary value. Countries like Mozambique are utilizing cryptocurrencies to solve challenges like affordable housing, showcasing the diverse potential of these digital assets. He highlighted the opportunity for Africa to create asset-backed cryptocurrencies leveraging the continent's abundant resources, positioning it as a leader in the space.
In conclusion, Ndemo stressed the importance of embracing central bank digital currencies, especially in countries like Kenya where digital platforms are already widely used for transactions. He warned against missing out on the benefits of these technologies by hesitating to take bold steps, encouraging Africa to capitalize on its resources and lead the way in the digital economy.
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