By Rading Biko,
NAIROBI, Kenya- The blockchain and cryptocurrency industry has emerged as a disruptive force, promising decentralization, transparency, and efficiency across various sectors.
Corruption in Africa has long impeded its development, fostering inequality, and eroding trust in public institutions.
The traditional efforts to combat corruption often face challenges like lack of transparency, inefficient bureaucratic systems, and entrenched interests.
However, the advent of blockchain and cryptocurrency technology presents a potential solution to these pervasive issues.
Felix Macharia, the CEO of Kotani Pay says with blockchain technology, each transaction recorded on a blockchain is immutable and publicly accessible, reducing the likelihood of fraudulent activity.
He was speaking during the recent Kenya Blockchain and Cryptocurrency Conference 2024 held in Nairobi.
“Governments can leverage blockchain to create transparent public records of transactions, including the allocation and utilization of public funds,” he said.
“Blockchain could be used for tracking government expenditures in real-time, making it nearly impossible for officials to embezzle funds without detection. This level of transparency can help build public trust and ensure that resources are used as intended.”
He pointed out that the mainly used centralized systems are susceptible to corruption due to the concentration of power.
Blockchain technology, being decentralized, distributes power across a network of nodes, making it harder for any single entity to manipulate the system for corrupt purposes.
“Blockchain allows for real-time tracking of funds, ensuring that money allocated for public projects reaches its intended destination without being siphoned off by corrupt officials,” he said.
“This is particularly crucial for development aid and government spending, where misappropriation of funds is a common issue,” comments Macharia.
Decentralized finance (DeFi) platforms can facilitate financial transactions in a transparent environment, reducing the need for intermediaries who might engage in corrupt practices.
Emmanuel Kata Kimeu, Secretary of ICT Security and Audit Control at the State Department of ICT, said cryptocurrencies offer an alternative financial system that is accessible to anyone with an internet connection.
Sandra Roh, CEO of the Global Blockchain Business Council said “cryptocurrencies facilitate low-cost and efficient cross-border transactions, which can help reduce the corruption associated with remittances and international trade.”
For example, she said expatriates sending money home can do so directly and transparently, bypassing intermediaries who might charge exorbitant fees or engage in fraudulent activities.
