Kenya was an initial adopter of mobile phone technology and now it is an initial adopter of blockchain technology and digital fixed income.
Recently government issued infrastructure bonds that are available only by mobile phones.
M-Akiba (akiba is Swahili for ‘savings’) will make public financing more available, boost savings and make more money available for infrastructure.
The amount sold was $1.5 million in a very fast time, comparatively speaking.
A blockchain facility putting together the buyer and seller could reduce costs and boost yields. A secondary market could add to the amount and quality of bonds traded.
April was just a test and June will bring another tranche. Such issuances could begin a new style of public financing. If so, it will be a mixed blessing.
Kenya is a very corrupt country and public finance is therefore a very difficult way of getting money for infrastructure which might better be built by private contractors with private money.
Kenya is doing thing how like ensuring that country that used to be occupied by roaming tribes is now being fenced in. The tribes have nowhere to go and thus the culture gradually disintegrates.
Keynan style money raising is being tried by other countries, and if it works it will presage increased public funding around the world. But the world needs less public funding, not more. So raising money via phone is not necessarily a good thing.
blockcitynews.com