In Kenya Banks See Blockchain As A Method Of Implementation Of Payments

Banks in Kenya are seeking regulatory approval for the use of Distributed ledger technology (DLT) to facilitate payments and create credit scoring models.

The attractiveness of the block as a distribution method is well documented, with the invariability of transaction records and the relative anonymity of the parties.

According to the bank’s reports, the blockchain may contain a risk if it is misused.

It is possible that the transition to blockchain and the stimulation of new services is a way to stimulate the trading activity of these banks.

The news service said that earnings in the sector fell, with restrictions imposed through bank regulators on interest rates. Against these restrictions, the volume of lending declined, as last year the volume of loans and advances decreased by 5.7 percent to 2.2 trillion shillings. In addition, profits declined by almost 10 percent to 133 billion shillings.

In a recent example of how a blockchain can be used in relationships between banks and between financial institutions, it was reported that the World Bank would offer bonds through a blockchain, through the Commonwealth Bank of Australia, which already has a blockchain system.