Attend most of Blockchain and cryptocurrencies meet-ups, and the talk has been there is a need to move from conversation to real world application of this interesting technology. Africa is keen to take advantage of this technology and quite some events and projects are on-going. One such example is Aeternity, that is focused to change the narrative and drive mass adoption of Blockchain technology in Africa.
On 11th October 2018, Aeternity through its subsidiary Aeternity Africa held an event but this time with a real world case use of Blockchain technology. To learn more about Aeternity have a look at this feature on our website. Aeternity Africa is a software company involved in development of decentralized applications using the Aeternity Blockchain (an open source platform). The company aims to promote, showcase and demonstrate potential use cases of Blockchain technology and over the next couple of months will run a series of events to achieve this objective. Its premier event held last week titled Blockchain in business brought together business leaders, guys working in the finance industry and Blockchain enthusiasts. The audience was eager to learn more about the company’s proto-type of current cheque clearance process using Blockchain technology.
Cheque clearing process in Kenya, and in most African countries exemplifies hurdles to financial inclusion and participation. Even though, governments through relevant authorities been involved in digitization of banking services, receiving payment via cheques proves otherwise. For instance, in Kenya the cheque clearing process takes up to 2-3 working days for funds to reflect on person presenting the cheque to bank for a payment. Alternatives available to settling payments in Kenya include mobile money transfer such as M-Pesa or using direct bank deposit which attracts huge fees compared to using emerging payment services such as use of bitcoin.
Additionally, more shortcomings are available when making a payment using cheques as one is vulnerable to bouncing cheques. This has effect of both on individuals owning the cheques, banks and person presenting the cheque for payment. For example, a bank may suffer reduced ranking due to the physical verification of cheques normally done using human eye to counter-check details given on the printed cheque against customer’s banking details. Apparently, cheque clearing process in Kenya takes more time and in event of an error on the printed cheque businesses and individuals are stifled of the much needed cash to run day to day activities.
Therefore, Aeternity Africa team is keen on sorting out this challenge by introducing a current cheque on Blockchain. A key feature of this product is real time execution of transaction leading to instant payment to a payee. In addition, reduces risks of poor rating for financial intermediaries, maintain data integrity and accuracy thereby minimizing chances of bounced cheques.
Coinweez will keep you posted on further development and improvement of this innovative product as well as inform you of upcoming Aeternity Africa events.