Bancor, the decentralized liquidity platform, has announced that it will release a new service aimed at decreasing the poverty in Kenya. Bancor will be helping Kenyans to grow the wealth of their local area through the creation of âCommunity Currencies.â
Community Currencies are a type of financial system where people are encouraged to use a local currency which facilitates transactions through the blockchain. In a statement,Â Galia Benartzi, co-founder of Bancor, said that the service aims to âcreate wealth on a local levelâ as well as âfill regional trade gaps, enable basic income and food security, and promote thriving local and interconnected global markets.â
Community Currencies are created by individual people and can be traded for other blockchain based currencies without any third-party involvement. This is possible because the Bancor network avoids the necessity for counterparties. This aspect helps to further stimulate financial growth by making trades fast and easy.
To support the creation of the initial Community Currencies, Bancor will be using a portion of theÂ $153 Million they raised in 2017.
The company has teamed up with the non-profit organization,Â Grassroots Economics, to aid in the design and creation of the service. Grassroots Economics already run several other communityÂ currencyÂ programs around Kenya. They will be helping to set Bancorâs system up in bothÂ Kawangware andÂ Kiberaâ two financially vulnerableÂ locations.
This intervention by Bancor follows theÂ World Bankâs Findex report, which found that around three billion individuals in the world are underbanked and cannot find any viable type of financial support. Organisations and charities are only now beginning to recognize that cryptocurrency could bridge this gap and potentially free citizens from their financial burdens.
Another cryptocurrency which has been focusing its efforts on the underbanked is the privacy coin,Â DASH. The team has been aiming to get countries like Venezuela and Zimbabwe to adopt their coin, considering how residents of both regions cannot comfortably rely on their respective fiat currencies.