Blockchain, Identity, Chamas and Africa: A Q & A with Ian Grigg

Way before bitcoin and the blockchain, Ian Grigg was part of a vibrant group of pioneers that pursued the vision of digital cash and financial cryptography in the 90s – what is now call blockchain. It is an understatement to say he has seen it all.

By God! There is too much noise in the blockchain industry. I know because I live it everyday; have been living it for the past 5 years.

Over time, I have devised a method to navigate and filter out the practical and realistic from the bold, utopian-dream proclamations. The trick is to seek out and follow the more sober-headed minds in the industry; these are the older wiser tech heads and the level-headed critics in the industry.

Ian grigg is one of them.

Ian Grigg is an architect and financial cryptographer who has been building, auditing and consulting for cryptographic ledger platforms for over 20 years. Way before bitcoin and the blockchain, he was part of a vibrant group of pioneers that pursued the vision of digital cash and financial cryptography in the 90s – what is now call blockchain. It is an understatement to say he has seen it all.

He is mostly known for 3 accomplishments (amongst others)

Co-inventor of the Triple Entry Accounting Ledger, a concept that sparked the explosion of a $400 billion Bitcoin, cryptocurrency and blockchain industry – bitcoin is the world’s first triple ledger entry system at scale.

The inventor of the Ricardian contract, a canonical design pattern for tying legal contracts into digital assets issued over the internet. His work on Ricardian Contracts foreshadowed today’s blockchain smart contracts.

Confirming the identity of 2 of the members of the team Satoshi Nakamoto that birthed Bitcoin – Craig Wright and Dave Kleiman

More recently, Ian was an architect consultant for one of the world’s largest consortium based distributed ledger protocol, R3 Corda, formed by 43 of the world’s largest banks, a partner at the $4 billion EOS blockchain for business and commercial scale and an audit consultant for Senegal’s Digital Currency roll out masterplan for Francophone Africa, serving under eCurrencyMint on behalf of Omidyar Network.

Today, Ian is a cofounder and Chief Technology officer at Chamapesa, a project using blockchain elements to digitize the indigenous culture of social savings and investments that is prevalent across Africa and the developing world. Ian believes the Chama groups of Kenya and savings groups communities in Africa and Latin America hold the key to designing identity systems for a blockchain powered internet economy.

So when Ian speaks, you listen and pay attention.

I managed to lock him down for a question and answer session, probing his mind on Blockchain, Identity, Chamas and Africa.

Whatever your opinions, what follows is one of the best bits of wisdom  you will come across on the interwebs.

Enjoy!

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Why African Fintech Wants To Digitize Chamas, But Can’t Seem To Get It Right

Why is the digitization of Chama groups so valuable for Fintechs and Telcos and Banks? And more interestingly, why is it such a tough nut to crack?

 

A group of high profile organizations including Facebook, Mastercard, FSD Kenya, Safaricom, Fintech startups,  and even the World Bank have convened in Nairobi for a one day workshop to try figure out how to digitize the chama groups of East Africa. While it has been over a decade of digital financial inclusion estimated at 80%, none of them have figured out how to successfully digitize chama groups.

Just so we’re on the same page, I use chamas as a catchall for any group of people who come together with a shared goal, agree on a self governing mechanism and pool together resources such as time, labour or capital to achieve their shared aspirations. This simple form of self organization, self governance and chama identity makes it a highly flexible people-structure and why it exists in different forms across the world and Africa as Paare in Chad, Asusu in Nigeria or Chilemba in Zambia.

So why is the digitization of Chama groups so valuable for Fintechs and Telcos and Banks? And more interestingly, why is it such a tough nut to crack?

I found the answers to these questions from Toffene Karma, the one person who successfully digitized the social savings group of Chad West Africa known as Paare using a mobile product known as TigoPaare.

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How the Central Bank Of Kenya Plans To Regulate Bitcoin and Cryptocurrencies

Rather than fight change, the Central Bank of Kenya now seems to be reconsidering its stance on cryptocurrencies as a radically new way of high-speed, low-cost value transfer independent of traditional financial intermediaries.

Bitcoin and cryptocurrencies are a puzzle especially for regulators. Over the last 4 years our dear Central Bank Governor, Dr. Patrick Njoroge has consistently been opposed to the idea of cryptocurrencies. He issued 2 damning public notices warning the public to stay away and another circular expressly requesting banks to choke any value transfer activity related to cryptocurrencies.

As per the Central Bank of Kenya Act, he is well within his right. A bank is a regulated private business. You cannot compel a bank to take you as a customer or take your business. Thus, every once in a while, the governor pulls out his trump card to remind us who is boss.

But mounting pressure has pinned the old man against the wall, forcing him to revisit his dogmatism. An article from the Standard dated May 23rd titled “CBK Warms Up to Cryptocurrencies”  read

“CBK Governor Patrick Njoroge said the regulator was open to introducing cryptocurrencies such as bitcoin as alternative payment vehicles with the opportunity to reduce fraud.”

While in the past, all the the financial instruments that intermediary companies use for fund transfers were based on fiat currencies, in the forms of cash, bank deposits and electronic money – it is no longer the case with the advent of Bitcoin.

Rather than fight change, the Central Bank of Kenya now seems to be reconsidering its stance on cryptocurrencies as a radically new way of high-speed, low-cost value transfer independent of traditional financial intermediaries.

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