Charles Hoskinson, the co-founder of Cardano, has disclosed that the popular blockchain project is planning to launch peer-to-peer (P2P) lending in Africa, as part of efforts to bridge the gap between developed and developing nations.
The project, which will create a “one global economy” instead of two economies that are divided between the haves and the have-nots, will mitigate income and wealth inequalities among nations.
“Another thing that I think is really cool on the horizon we’re doing this year is that we’re finally able to do peer-to-peer lending into Africa,” Hoskinson was quoted as saying in a 57 minutes video posted on media sharing platform YouTube.
Hoskinson noted that the initiative, which is slated to be launched in Cardano, Kenya this year, will see billions of dollars flow from developed countries like the United States into developing nations like Kenya and Ghana.
“If [we] get it done then billions of dollars of value will go from the developed world to the developing world where interest rates are higher,” Hoskinson said.
The feature will be powered by blockchain technology and users do not need to express fear that the process could be manipulated by any third party, Hoskinson added.
Commenting on the trustless nature of blockchain, Cardano’s creator noted that the technology has gone beyond being used in payments alone.
Notably, blockchain has given users the possibility of participating in inclusive accountability, which eliminates the reliance on any third party, as people can conduct transactions among themselves without any form of fear.
News of the development did not have a heavy impact on the price of Cardano’s native cryptocurrency. ADA, which dipped below $0.83 today, is up 7% as the token is currently trading around $0.88, at the time of writing.
Meanwhile, despite the price of Cardano not going in investors’ favor, Dan Gambardello, CEO and founder of Crypto Capital Venture (CCV) called the cryptocurrency the biggest sleeping giant that is waiting to explode.
He further urged enthusiasts to increase their ADA holdings within the $0.80 and $0.50 buy zone or miss out on a lifetime opportunity.