Economy

Kenyan farmers flip to cryptocurrency as reputation of neighborhood currencies will increase – Altcoins Bitcoin Information

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The expansion and recognition of neighborhood inclusion cryptocurrencies in Kenya continues to skyrocket, with the nation’s rural farmers being the most recent group to embrace fintech. As a report reveals, some farmers within the Kenyan countryside at the moment are accepting cryptocurrency as a type of fee whereas others are utilizing it to buy vital provides.

Utilizing Sarafu Cryptocurrency Helps Farmers Save Cash

In accordance with a report In accordance with the VOA media outlet, one of many causes this different financial system has change into in style is that it permits customers to protect their financial savings in fiat forex. For instance, the report quotes Emmanuel Kahindi, a 26-year-old farmer from Kilifi, Kenya, explaining how utilizing this new financial system helps him. Kahindi stated:

“Sarafu [the community inclusion cryptocurrency Helped me a lot especially because it saves me my money, my Kenyan currency. According to the report, Kahindi uses the sarafu to buy garden items like seeds and fertilizer.

Sarafu cryptocurrencies, according to an explanation from the VOA report, are like vouchers that can be exchanged for goods or services from other users of the currency. So far, anyone with a mobile phone line in Kenya can register to become a user. Upon registration, users receive 50 free sarafu. After that, they earn coins by selling a product or service to another user.

Will Ruddick, the US economist who introduced this system for low-income urban customers, is quoted in the report as saying that this digital currency is intended to bridge the fiat currency gap. He said:

I think this is where there is the most chronic lack of national currency. So I think what is happening, we are filling a gap. People say listen, the national ledger system, the national currency is not available to us. We cannot measure our trade in this thing.

Support for the Growth Initiative

As previously reported by Bitcoin.com News, this community-inclusive cryptocurrency initiative has been applauded by United Nations Resident Coordinator in Kenya, Stephen Jackson. In his praise, the UN coordinator praised the blockchain-anchored electronic voucher system for its role in helping “vulnerable households access basic needs”. The Kenyan Red Cross has also welcomed the initiative.

Meanwhile, in addition to receiving support from farmers and the UN, the sarafu cryptocurrency is also receiving approval from some Kenyan academics. For example, Bitange Ndemo, senior lecturer at the University of Nairobi, believes that this type of cryptocurrency can be useful in other African countries. Ndemo gives an example of cobalt mines in the Democratic Republic of Congo as an area requiring community inclusion cryptocurrency. He explained:

“Nothing prevents them from having a coin of cobalt based on the reserves they have in terms of cobalt. The country can then raise sufficient resources to develop the country.”

What do you think of this use of cryptocurrency by Kenyan farmers? Let us know what you think in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons, Philou1000

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