How A Ugandan Prince And A Crypto Startup Want To Revolutionize African Tech
Crypto and blockchain enthusiasts have been railing for years against the centralized world of banks, but many have been doing so from the privileged vantage point of developed countries. But what if blockchain technology turned out to be most revolutionary in emerging economies?
Take Africa for instance. Consumers in those countries became so frustrated with the banking fees imposed on their transactions every time they wanted to merely top up their mobile airtime, that airtime minutes alone actually became a form of money. Banking in the way it’s been developed for the developed world simply does not work when a transaction to top up a phone can cost more than the airtime itself.
South African-based startup Wala realized this early on. It developed a smartphone app that acted like a wallet, facilitating customer transactions via the app with existing banking infrastructures. But the high banking fees for nearly every function was hurting Wala’s customer base and the company’s early business model as a mobile wallet for the smartphone generation.
From Tech Crunch. Story by Mike Butcher.
They needed a zero-fee solution, but the existing financial system just didn’t work. That’s when they realized they could switch to a cryptocurrency and allow payments across a peer-to-peer network for merchants, offering airtime, data, electricity bills — even the ability to pay school fees.
Today Wala, which raised $1.2 million selling Ethereum-based “$DALA” tokens in an initial coin offering (ICO) in December last year, is facilitating thousands of transactions in daily accounts across Uganda, Zimbabwe and South Africa, with most of those as micropayments under $1.
Since the launch of their $DALA currency in May 2018 (currently accessible through the Wala mobile application), more than 100,000 $DALA wallets have been opened and more than 2.5 million $DALA transactions have been processed, says the company. The multi-chain crypto asset — at least right now — uses Ether for the wallet and Stellar for transactions, though it is not locked to any one platform.
Through $DALA protocols (Kopa, Soko and Kazi), consumers have access to borderless, low cost, efficient and unique financial services enabling them to earn, save, borrow and transact in a new, decentralized, financial system.
Read more at Tech Crunch.