One Japenese in Republic of Mali are taking about next generation of Finance

In the Republic of Mali, located in West Africa, there is a young Japanese man named Tomohiro Masumura. He studied aquaculture at Hokkaido University Graduate School and embarked on a journey to Mali 🇲🇱. His encounter with xWIN took place at the 2021 Blockchain Expo, where he was approached and offered an internship opportunity. He is dedicated to bringing advanced Japanese aquaculture and blockchain technology to West Africa, including Mali. Below is a part of his report.

Blockchain and cryptocurrencies have the potential to revolutionize financial services for people without bank accounts, particularly in the West African Republic of Mali, where Dante Corporation, invested in by xWIN, offers exciting possibilities for blockchain in finance.

Let’s take a look at Mali’s financial situation. Currently, only about 15% of people in Mali are said to have bank accounts, with the actual number likely even lower. One reason for the low ownership of bank accounts is the limited number of bank branches. Many banks are concentrated in urban areas, making it difficult for people in remote areas to access banking services. Additionally, there is a lack of motivation to open bank accounts, as Mali remains a predominantly cash-based society, with many people not seeing the necessity of the banking system, partly due to education and infrastructure issues.

The adoption of electronic money, like OrangeMoney, is steadily increasing, mainly due to the convenience of using it for various payments, thanks to Orange providing communication services. The ability to convert cash to credit at small local stores within walking distance is also a contributing factor.

On the other hand, cryptocurrency adoption is low, at around 1%, and smartphone penetration is less than 40%, making it challenging for new technologies to penetrate. While Bitcoin became legal tender in Central Africa last year, significant progress has yet to be seen.

In many West African regions, cash transactions are the primary means of payment, and a significant portion of the population lacks bank accounts, posing challenges for financial inclusion. Limited access to financial services restricts participation in savings, loans, insurance, and more, with associated security risks, rising transaction costs, and a lack of transparency in the financial system. Blockchain technology has the potential to address these issues, as mentioned earlier.

While there are some skeptics of blockchain technology, global interest in decentralized cryptocurrencies is growing, especially amidst uncertain times. Therefore, there is a constant demand, particularly in the financial sector, and it is expected to continue developing.

LIC (Dante Corporation), in which xWIN has invested, is based in Mali and aims to solve various societal issues using “e-commerce × blockchain technology.” One of these issues is the high cost of remittances to West Africa, which currently incurs approximately an 8% fee. This project targets Malian expatriates living abroad as customers, allowing them to purchase goods on the platform instead of sending cash and directly delivering them to their families, thus saving time and reducing waste. Increasing the use cases for cryptocurrencies among the people of Mali is one of its missions.

In conclusion, infrastructure development, expanding use cases, and education are crucial factors in the widespread adoption of blockchain technology to address these challenges. The potential of blockchain technology beyond these issues is limitless, and LIC (Dante Corporation) is committed to promoting the adoption of blockchain for the future.