Small business across the East Africa region will now be able to access financing inform of bitcoins through Blockchain technology from multiple investors across the world thanks to a partnership between Bitpesa and Bitbond.
The partnership is just but the beginning of how Blockchain will revolutionize finance opening up borders and unlocking foreign capital while rendering commercial banks less powerful.
Bitbond is in the business of raising money from investors and issues loans to small businesses through the blockchain technology. Small businesses get access to affordable loans while lenders earn profitable interest rates.
“Ten per cent of our global user base comes from Sub-Saharan Africa. We are excited to work with BitPesa in this region because there is a huge unmet demand for small business financing,” said Bitbond founder and chief executive officer (CEO) Radoslav Albrecht (pictured).
Bitpesa on the other hand is in the business of money transfer through the use of bitcoins across the continent. Blockchain once thought of as a fad is spreading like wild fire in what could redefine the role of central banks across world and check the powers of commercial banks the same way internet has pruned the powers of media houses.
The borrower can convert his loan to his local currency or into the US dollar and can receive the funds through his local bank account.
The partnership will for now finance startups in Uganda, Tanzania, Kenya and Nigeria. The deal with Bitbond will help small businesses in the above countries access small loans through a free online wallet.
It remains to be seen how the government and the whole traditional finance industry will react to the developments which