- Blockchain experts have underscored its potential to transform Uganda’s mobile money sector, promising reduced costs and enhanced reliability
- The 2024 Kampala Blockchain Summit has brought together various stakeholders to discuss integrating blockchain technology into mobile financial services
- Key figures highlight blockchain’s capability to support rapid, cost-effective transactions and overcome current system inefficiencies
Blockchain has long been seen as a pivotal technology to elevate the mobile money landscape, and in Uganda, experts are pushing for the adoption of the technology. At the recent Kampala Blockchain Summit, blockchain luminaries argued that blockchain’s features, such as lower transaction fees and offline capabilities, can modernize and expand financial access across the country. Some projects, such as Telcoin, are premised on this very concept, but Uganda could go its own way using the technology.
The Promise of Blockchain in Mobile Money
During the summit, themed “Unlocking Opportunities in Africa Through Blockchain,” technology specialists presented blockchain as a solution to current challenges in Uganda’s financial systems. Thomas Giacomo from BSV Blockchain emphasized that blockchain can process millions of transactions per second, significantly lowering costs for users. “Our open-source solutions are designed to empower businesses and government operations,” he stated.
Gyewava Jonathan Kasule of Kite Pesa Uganda highlighted blockchain’s ability to facilitate microtransactions, making smaller-scale financial activities feasible. “Imagine sending as little as 10 shillings seamlessly. Blockchain supports these tiny transactions, enhancing inclusivity,” Kasule explained.
A Call for Adoption and Regulation
Despite its promise, regulatory and security concerns were acknowledged and discussed, with Andrew Kawere from the Bank of Uganda acknowledging blockchain’s potential but stressing the need for prudent adoption. Regulatory bodies aim to balance innovation with safety, ensuring that blockchain development aligns with national interests.
If used in the right way within the law, perhaps with new regulations, blockchain could reshape Uganda’s financial landscape by fostering efficient, affordable, and secure mobile transactions, marking a new era for economic participation.
