Blockchain-based mobile money platform Wala's open source multi-chain crypto asset will be used as the principal transactional currency for the Clean Path Emerging Markets solar programme in Uganda.
As one of Africa's Blockchain-based initiatives, Wala partnered CP-EM to create utility-scale grid-connected renewable power systems that will generate electricity for commercial and individual users in rural un-electrified areas of the East African country.
"The program emphasis is job creation as a direct result of local economic stimulation and leapfrogging legacy technology and inefficient standards and practices," said Tricia Martinez, founder of WALA, about the project which adds to the growing list of crypto-backed programmes in Africa. "This partnership will employ $DALA allowing Ugandan consumers to purchase solar power in $DALA, workers to be paid in $DALA and the program to run on $DALA."
Martinez believes Blockchain is the technology the financial inclusion space needs to "build a new financial system from the infrastructure level up and do it the right way."
"Blockchain technology and crypto-assets allow consumers, who previously could only access financial services from their local community for a number of reasons (banking costs, intimidation of financial system, no identification, etc.), to now take part in the global economy. Just think, city-based finances - but on a global scale. Consumers can now access loans from anywhere, earn by doing work for people across the world, or just secure and grow their savings without disrupting their lives."
Wala's zero-fee crypto wallet seeks to provide Africans with a financial system that suits them and doesn't cost them to participate.
Unlike the existing formal financial system, the company does not see banking the unbanked as a solution to the financial inclusion problem in Africa because of the fees associated with it. In fact, they believe giving a bank account to a consumer in these countries will create more harm than good.
The company claims banking fees discourage consumers from using a bank account to save money or transact, hence 94% of transactions in Africa are still conducted in cash.
With Blockchain and crypto, the company sees more capabilities (cheaper cost of transaction and smaller divisibility) and the potential to incentivise every single small action to change consumer behaviour and enhance adoption.
Removing fees from transacting and sending P2P payments represent the core of Wala's mission to create a system that enables anyone to reach financial freedom.