Cardano’s aspirations to provide peer-to-peer (P2P) financing across Africa have been unveiled by the Founder, Charles Hoskinson. This has been done as a means of bridging the gap between developed and underdeveloped countries. Starting with Kenya, the project aims to build a “one global economy” rather than two separate economies for developed and underdeveloped countries. The project will also aid in reducing income and wealth disparities between countries. Like DeFi, Cardano’s RealFi aspires to develop a product and technology ecosystem that minimizes the friction between crypto liquidity and real-world economic opportunities.
Cardano founder Charles Hoskinson outlined the disadvantages of decentralized finance on a YouTube Livestream from his home in Colorado in late December 2021, stating that many users are highly frustrated by the low production quality of applications inside the DeFi ecosystem. He also emphasized Cardano’s ambitions to “create a financial operating system” in 2022 that will provide DeFi services to Africans, as many African countries are currently unbanked. Cardano has always prioritized Africa, according to him, and the project hopes to increase its influence in the region.
According to Hoskinson, the project will result in billions of dollars flowing from rich countries such as the United States to developing countries such as Nigeria, 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.”
He went on to say that the feature will be enabled by blockchain technology and that users need not be concerned about the process being tampered with by a third party.
When it comes to blockchain’s trustless aspect, Charles points out that it’s been utilized for more than just payments. Cardano improved its network last year to include smart contract capabilities, resulting in a slew of applications being run on its Blockchain. Sundae Swap, a prominent DEX platform, has launched on the Cardano blockchain with 124.49 million in Total Value Locked (TVL), up 60% in 30 days.
Significantly, blockchain has enabled individuals to participate in inclusive accountability, which eliminates the need for a third party and allows people to conduct transactions without fear. Cardano is currently the second-largest cryptocurrency by transaction volume, according to Messari. Cardano has been a top-three blockchain in terms of transaction volume since the debut of its smart contract and has recently surpassed Ethereum in this regard.
The cryptocurrency, according to Dan Gambardello, CEO and creator of Crypto Capital Venture (CCV), is the biggest sleeping behemoth waiting to explode. He also advised investors to boost their ADA holdings between $0.80 and $0.50 in order to avoid missing out on a once-in-a-lifetime chance. As of this writing, ADA is trading at $0.94, up 8.50 percent on the day.