Lending network enables transparent credit history in Africa via blockchain partnership
African mobile banking platform Aella has partnered with Creditcoin Network to make credit histories transparent by integrating all of its transactions into the public Creditcoin blockchain.
In an announcement sent to Cointelegraph, Creditcoin said that all of Aella’s credit transactions will be recorded on the Creditcoin blockchain, making it easy to audit and available for viewing through their block explorer. Recorded transactions will include loan terms as well as payments and repayments.
Creditcoin said the partnership comes with the release of Creditcoin 2.0, an upgrade that makes the network more stable and easier to integrate.
Aella CEO Akin Jones pointed out that the move allows investors to monitor its business performance in real time by viewing the blockchain. This could eventually lead to more capital raising and help give more Africans access to credit. Jones explained that:
“For us, and for millions of users across Africa, this means greater and cheaper access to vital sources of credit.”
Tae Oh, the founder of Creditcoin, expressed his excitement for the 2.0 launch and the partnership with Aella. According to Oh, the new development is a step towards the project’s goal of giving the unbanked a “fairer chance”.
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In April, a report showed that crypto ownership in Nigeria had increased due to the lack of proper financial infrastructure in the region. The report, published by crypto exchange KuCoin, noted that many Nigerian citizens have started to embrace crypto as an alternative means of transferring assets.
Meanwhile, venture capital funding for startups in the African region has increased 11 times in 2022, according to the African Blockchain Report 2021. For this reason, the report predicts that a blockchain unicorn could surprise the region in two at three years old.