On May 25, Algorand, a Proof-of-Stake (PoS) blockchain technology, revealed that it has invested an undisclosed amount in FlexID, a decentralised digital identification platform to expand its Self Sovereign Identity (SSI) platform. Using this investment, FlexID intends to make its network available in every emerging economy. The company expects that by doing so, it will be able to assist over 1 billion individuals who do not have legal identity. This is FlexID’s first financial agreement, to be sure.
Victor Mapunga, a Zimbabwean serial technology entrepreneur founded FlexID with the aim to eliminate financial marginalisation from Africa. Mapunga, the platform’s founder, was dissatisfied with the banking system’s exclusion of individuals without identifying documents. Algorand financing identified FlexID as a catalyst for global financial inclusion which falls under the impact category. FlexID aims to assist 400 million Africans who all are unable to access financial services due to a lack of identity documents.
Mapunga, Founder FlexID claims:
“Identity is foundational to modern-day commerce. Without an ID, one cannot participate in the economy even at the most basic levels such as access to basic telecom services, mobile money and banking.”
He went on to argue that not having an ID makes it difficult to get an education or receive healthcare. Furthermore, most national records are disorganised, resulting in even higher business expenditures. FlexID offers a solution that will connect the informal and formal economies. According to Mapunga, farmers can easily get financing and inputs, and she praised the portal. Crypto and blockchain technologies are continuing to gain traction in Africa as a means of facilitating financial inclusion. Recently, Nigeria teamed up with the Developing Africa Group to create a big crypto initiative on Algorand. The project aims to create a national wallet and an IP exchange marketplace for every individual in Africa.
The Central African Republic has previously stated its intention to build Africa’s first legal Bitcoin investment platform. The country aims to call the platform Sango, according to the proposals.
President Faustin-Archange Touadera explained why the government wishes to create the platform. He stated:
“The formal economy is no longer an option. An impenetrable bureaucracy is keeping us stuck in systems that do not give us a chance to be competitive.”
Read more:
- Nigeria joins hands with Developing Africa Group to develop crypto initiative on Algorand
- ALGO price rises 21% as FIFA partners with Algorand for sponsorship
