INTERNATIONAL “BITCOIN” BANK BITWALA IN NIGERIA, KENYA, UGANDA & TANZANIA
Bitcoin, a new kind of money that is created digitally, has been called the financial service of the future. With global block-chain banks (these are banks that deal in bitcoin) like Bitwala making these financial services available worldwide, this is quickly becoming a reality. Now, Bitwala has introduced bitcoin technology to mobile money transfer through M-Pesa in Kenya, Nigeria, Tanzania and Uganda.
Mobile money is a steadily growing business that allows millions all over the continent of Africa to access secure and affordable financial services. The use of a mobile money account allows customers the convenience of transferring money that is stored in a “mobile money account”. In some countries, it is even used directly to make payments.
This revolutionary idea, that will combine the convenience of mobile money transfer and the efficiency and systemization of bitcoin will extend the possibilities of the mobile money platform to include the provision of loans and higher money transfers, still within a safe and secure interface that does not require that you have a traditional credit score. If the action is successful, bitcoin users will also be able to send money to mobile money accounts using bitcoin.
This is an innovative idea and a timely one, however, whether Bitwala will be successful or will be able to collaborate with M-Pesa (if they have not already) is not yet sure. In Kenya, a bitcoin startup, BitPesa, was banned by the central bank of Kenya and tight restrictions left virtual currency holders stranded. BitPesa also faces some legal battles with Safaricom, the largest mobile network provider in Kenya because they felt the bit system would be a major source of competition to their mobile transfer system. Given this historical data, Bitwala will have to take on a different approach if their expansion plans are to hold in the countries mentioned earlier.