What you need to know:
- The choice to set up the bank in Kenya was influenced by the country’s technological advancement over the years.
- Mr Cuffe said the bank will also benefit other African nations by helping to scale up economic and social development.
A digital decentralized commercial banking firm that uses ledger technology is set to open in Kenya.
Block Bank, headquartered in the United Kingdom, will open offices in Nairobi, making Kenya its first stop in Africa.
It will target small and medium-sized enterprises, commercial entities and international commercial financial markets.
This comes weeks after President Uhuru Kenyatta appointed a task force headed by Dr Bitange Ndemo to work on Kenya’s Block Chain Road Map with an aim of the using the distributed ledger technology and artificial intelligence for development.
According to Block Bank Chief Executive Officer Adam Cuffe, the choice to set up the bank in Kenya was influenced by the country’s technological advancement over the years.
“Block chain is the best-known type of distributed ledger technology and it, in turn, is famous for being the technology that underpins Bitcoin a virtual currency," Cuffe said.
“Considering Kenya’s technological advancement with Nairobi being Africa’s Silicon Savannah, Kenya’s advancement in culture and civilisation within emerging economies is in no doubt at its best.”
Mr Cuffe said the bank will also benefit other African nations by helping to scale up economic and social development.
“Block Bank will provide low-cost funding to commercial entities throughout the world, bridging the access gap for low-cost funding products,” he said.
Block Bank will also have revenue-share allocation to a charity to be confirmed in licensed jurisdictions.
“Development of rural areas and infrastructure development loans are an integral component of the bank’s long-term objective of providing affordable funding for projects, which will have a positive impact on the communities.”
With an international presence online, the digital delivery system will allow commercial entities to apply from anywhere in the world.