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Charles Hoskinson Names Exciting 2022 Cardano Partnership to Build P2P Financial Operating System

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Wed, 01/05/2022 - 13:54
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Yuri Molchan
IOG CEO has named a Cardano partnership he feels very excited about in 2022
Charles Hoskinson Names Exciting 2022 Cardano Partnership to Build P2P Financial Operating System
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In a live stream on Christmas Eve, founder of Cardano Charles Hoskinson mentioned a new partnership he is very excited about that will start in the second half of 2022. Here's what it is.

New Cardano partnership for end-to-end payments

The partnership Hoskinson mentions starting from minute 7:42 on the video is about Cardano teaming up with Pezesha to build a peer-to-peer financial operating system in Africa.

Hoskinson described how he sees this in a few words: a customer in Kenya or any other country in Africa, who has a blockchain-based identity and a credit score, can receive a loan in crypto via stablecoins in just one click and pay it back later in the same manner.

Transactions here would be settled on Cardano. At the moment, Hoskinson reminded, in the microfinance space, the interest rate is 35-80% per annum with a 40% default rate. As for Pezesha, he started, its interest rate is 3-4% per month (36% per annum) with a default rate of just 2%.

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Circumventing banking system in Africa

Hosk stated that once this Cardano-based financial operating system turns on with Pezesha, it is going to be bigger than the traditional microfinance space in Africa.

He believes that this would lead to interest rates dropping gradually due to competition because of the oversupply of capital relative to clients. The second thing is that he believes with this partnership Cardano will completely circumvent the banking system in Africa. It is "at times tremendously predatory" and allows "some of the worst people to stay in power."

The Cardano founder then wants to find ways to spread this blockchain-based system all over Africa.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.