Businesses all over the world, especially in developing countries, often pay with informal promises instead of cash. We make this process much more efficient and help boost local economies.
IOU = "I owe you", an acknowledgement of debt*
Sikoba overcomes the limitations of informal credit:
Because debt is registered on a blockchain, users can obtain legal certainty and are able to establish a credit history.
Users can transact beyond their immediate circle of trust, as SikobaPay identifies trusted intermediaries.
SikobaPay automatically clears circular debt, thus reducing the need for cash settlement.
SikobaPay produces an audit trail, thus it's a first step towards creation of credit history.
Have a look at a one-minute introduction to Sikoba by its founder, Alex Kampa. For more details, please check our deck. For more videos visit Sikoba User Resources page.
Setting up local currencies is a natural use case for SikobaPay. We aim for an easy set-up that will make it possible to start a local currency even for very small communities. In addition, users of local currencies can be encouraged to use Sikoba's IOU features to further boost the local economy.
SikobaPay can help to jump-start local economies. Once people realise that bank money is not absolutely necessary and have a tool for keeping track of mutual credits and debits, even primitive economics may get a boost.
For NGOs involved in Direct Giving, money distribution is a major expense. With SikobaPay, beneficiaries can regularly get a "credit" which they can use directly for purchases in local stores, while cash withdrawals will be subject to a fee. This will significantly reduce costs.
Operations of MFIs (Micro-Finance Institutions) are often inefficient and sometimes still paper based. SikobaPay can be used as a tool to automate loan management. By onboarding local stores, cash loans can also be partially replaced by credits on the SikobaPay app, further reducing operational costs.