Cardano to Expand in Africa: DeFi Loan Service is Here

According to the earlier announcement, Cardano is eyeing an expansion into Africa. The plan is set for 2022.

Cardano has reached the end of 2021 with a slew of impressive accomplishments . In the excitement for the coming year, the firm expects to level up its game with promising developments and innovations.

In 2022, Cardano’s major focus and strategic plans are settled down in Africa. The revelation came from a Youtube video posted by Charles Hoskinson, Cardano’s founder on Christmas Eve.

Hoskinson mentioned the future prospects of Cardano, saying that DeFi has the ability to change to bring light to the financial situation in the continent and Cardano is on a mission to make it work.

What Is Happening With Cardano?

The founder of Cardano said that the firm aims to set up DeFi services in the region, including loans, and plans to continue expanding Cardano’s reach in the continent.

Hoskinson hopes to discover a way to pull all of the elements together by Q2 2022 in order to conduct an end-to-end microfinance transaction on Cardano.

He commented,

“My goal for the second half of 2022 is to figure out how to put all the pieces together to get an end-to-end microfinance transaction on Cardano. So that a real person in Kenya or somewhere with a blockchain-based identity and credit score, stablecoin on the other side, Cardano is the settlement rail. Peer-to-peer, person-to-person, click a button, the loan goes to them. They pay it back, (and it) goes to the other side.”

During the Christmas broadcast, Hoskinson also discussed the growth of Cardano and the crypto industry as a whole.

The explosion of Decentralized Finance (DeFi), as well as the hype surrounding non-fungible tokens (NFTs), are both on the rise. Furthermore, cybercrime is a major concern, with many DeFi projects losing over a billion dollars by 2021.

According to Hoskinson, two million assets, the majority of which are NFTs, have been issued on Cardano.

He also stated that more than 127 projects are currently in development to create decentralized applications (dApps) on the network, with approximately 20-30 projects set to launch within the next three months.

Africa is a Massive Market

Charles Hoskinson confirmed in October that he had signed an MOU with the government of Burundi. This is Hoskinson’s first major preliminary agreement since Cardano’s Africa tour started in mid-October 2021.

Cardano’s expansion plan will not be entirely economic, despite its focus on the African market. Cardano announced a collaboration with Ethiopia’s Ministry of Education to leverage the benefits of blockchain digital identity.

Under the partnership, teachers and students will be able to easily check and track the East African country’s educational performance.

In September, Cardano also announced it formed an agreement with the Tanzanian government.

The goal is to promote digital inclusion and economic stimulation in underserved communities.

As part of the agreement, Cardano will make a contribution of $6 million in Africa in, “recognition of the unique opportunities for innovation in Africa.”

Cardano sees that the world’s highest number of entrepreneurs have gathered in Africa, the firm seeks to support the most innovative opportunities.

Director of African Operations John O’Connor expanded on the collaboration,

“Working with businesses in Africa I have encountered the most inspirational entrepreneurial spirit. At Input Output we believe in democratizing opportunity, which means giving equal access to funding to realize these innovative ideas, solving problems across the world.”

Is Africa An Ideal Place For Cryptocurrency?

Africa is amongst the fastest growing crypto economies in the world. In comparison to stocks or other investments, cryptocurrency opens up a new world of opportunities for the majority of African citizens.

Experts say that some countries in Africa find cryptocurrency and its underlying technology beneficial. Cryptocurrencies could be an alternative to traditional banking in Africa.

That explains why the use of cryptocurrencies in Africa is on the rise. Bitcoin, Ethereum, and other digital currencies provide a convenient and economical payment channel.

The potential of cryptocurrency adoption in Africa can bring positive influence to other countries around the world.