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FSD tips Blockchain to lower remittance cost

In 2016, Kenya, Uganda and Tanzania received in excess of Sh400 billion. FILE PHOTO | NMG
In 2016, Kenya, Uganda and Tanzania received in excess of Sh400 billion. FILE PHOTO | NMG 

A financial and private sector development firm, FSD Africa, has said use of a cash-transfer accounting technology for diaspora remittances could drastically reduce transaction charges.

FSD Africa’s report has vouched for use of Blockchain and Distributed Ledger (DLT) technologies—a public ledger connecting several deal levels—saying use of a shared but secure global platform reduced money-handling intermediaries.

FSD Africa that commissioned the study undertaken by Consult Hyperion lamented the high remittance charges, saying use of the technology enhanced transparency in funds transfer thereby eliminating fraud and money laundering.

The report hailed M-Pesa’s nationwide platform, saying it creates an access for a majority of Kenyans without the need of a bank account.