In the inaugural episode of the CryptoCurrents podcast, host Tori Madison interviewed Richard Erikodi and Douglas Horn, the founders of KOY Network, which aims to address the challenges faced by Africa’s banking system and promote financial inclusion and accessibility for individuals and businesses.
During the podcast, the founders discussed the significant hurdles faced by Africa’s banking system, the role of KOY Network in overcoming them, and their vision for Africa’s economic growth and digital inclusion.
Challenges in Africa’s Banking System
Despite attempts to bridge the gap, Africa’s banking system still lags behind, with a whopping 57% of Africans remaining unbanked. Playing a major role in that is traditional banking, which is often reserved for the wealthy, making it difficult for those with limited means to access banking services.
In addition, high fees, limited accessibility in remote areas, and costly fund transfers further exacerbate the problem. As a result, mobile money services provided by telecommunication companies have filled the gap, but they are not as comprehensive as traditional banking, posing a separate set of challenges.
The Role of KOY Network
KOY Network aims to provide a more efficient and accessible financial infrastructure in Africa. The aim is to do that by leveraging blockchain technology, which allows KOY to offer a faster, cheaper, and more widely available alternative to traditional banking and mobile money services.
Ultimately, KOY Network will enable organizations to offer payment services and other financial products, lowering the barrier of entry for developers and fostering, hopefully, innovation along the way.
Transparency and Trust
Another major aspect of KOY Network that stands out is transparency in its operations and financial transactions, enabled by the blockchain-based infrastructure. While not a public blockchain, KOY publishes block numbers and hashes on public blockchains to prove the integrity of its transactions.
The transparency helps combat trust issues that have plagued other attempts at improving the banking situation. And going even further, the network undergoes regular audits by a reputable auditing company, ensuring the security and reliability of its smart contracts.
Benefits for Africa
KOY Network aims to benefit various regions and demographics in Africa. By facilitating cross-border trade and reducing transaction costs, the network will enable entrepreneurs, particularly those on the outskirts of the economic system, to thrive.
Simultaneously, small and medium-sized businesses will have access to more affordable and efficient financial services, which will enable economic growth and job creation.
KOY Network also plans to connect the African diaspora, making it easier for them to participate in their home countries’ economies and reducing the high remittance fees currently imposed.
Addressing Currency Instability and Inflation
Africa’s currency instability and inflation pose significant challenges to economic growth. KOY Network plans to address these issues by creating a more efficient and cost-effective system for cross-border transactions.
By bringing wallets together on the same ledger, the network will enable faster and cheaper transfers between different currencies. Doing this will drive confidence in cross-country trade and contribute to economic stability.
The Future Vision
The founders envision KOY Network as a catalyst for Africa’s economic growth and digital inclusion. With Africa’s young and growing labor force, the network aims to unlock the continent’s potential by providing better financial services.
By reducing remittance fees, facilitating cross-border transactions, and introducing innovative financial products, KOY Network seeks to empower individuals, businesses, and entire economies. The founders believe that KOY Network will play a crucial role in reshaping Africa’s economic landscape and fostering prosperity.
Curious to learn more about KOY and its vision of Africa’s financial future? Check out the episode on Spotify.