To many people, the year 2020 will probably go down in history as one of the most consequential of the century. After all, it was the year when governments, health professionals, and business owners all seemed to have a common goal: stopping the spread of Covid-19 at all costs. Indeed, in a majority of the cases, stopping the spread of the virus was said to require shutting down economies and forcing the scared masses to stay indoors. These measures, in turn, forced ordinary people to find ways to carry on with their lives without offending governments or without exposing themselves to the virus. It is these circumstances that brought to the fore the importance of an equally consequential innovation — blockchain technology.
Kuva Seeks Solution for Crypto’s Uneasy Relationship With Regulators
As some studies have shown, the adoption or use of blockchain technology has surged since the second quarter of 2020. The innovation’s surge in popularity may have convinced many central banks and governments to seriously consider using the same when creating their own digital currencies.
However, despite the innovation’s apparent success and acceptance by stakeholders, many regulatory bodies and governments, including the Biden administration, are still trying to stifle the blockchain industry. Fortunately, this has not stopped innovators and entrepreneurs from trying to make improvements on current chains or from creating new blockchains just as James Saruchera, the co-founder and CEO of Kuva has done.
In his response to questions from Bitcoin.com News, Saruchera, a Zimbabwean native who is now based in the U.K., explains why it is important for governments and regulators to see the crypto and blockchain community as allies. He also shares some of the reasons why his company chose to build its own blockchain instead of using established chains.
Below are Saruchera’s responses to questions sent by Bitcoin.com News.
Bitcoin.com News (BCN): Can you start by giving us a brief background about what motivated you to start this blockchain project?
James Saruchera (JS): Perhaps with the exception of the Chinese yuan, I doubt anyone can name a currency from a developing country that is considered a hard currency. The effect of this is that most people in that part of the world are confined to money that loses 10% or more of its buying power every year, meaning they are effectively and progressively getting poorer even if they diligently saved every cent all year. I saw my own parents’ pension of 30+ years get wiped out in an instant by hyperinflation. I was intrigued by the question of what could happen if billions of people had 10, 20, 30% more spending power each year just by being able to protect the value of what they have. The blockchain technology we are building at Kuva (a Shona word that means “to have”), has the potential to do this.
The effect of this is that most people in that part of the world are confined to money that loses 10% or more of its buying power every year, meaning they are effectively and progressively getting poorer even if they diligently saved every cent all year.
BCN: What are some of the milestones or important goals have you achieved as an organization?
JS: After three years of quiet but intense development, just through word of mouth our recently released pilot platform already has over 10,000 thousand downloads from users in 75 countries. We’re just getting started and are processing over USD$20M so we know we’re onto something.
BCN: Some might argue that there are far too many blockchain projects or start-ups out there and that instead of creating your own, you could have simply worked with what is already there. How would you respond to that?
JS: Building your own blockchain is undeniably a daunting undertaking, and when we first started we certainly thought using an existing blockchain would be the way to go. The reality on the ground in developing countries soon changed this perspective. Challenges like the last mile, interfacing with cash, connectivity and other things render a blockchain being masterminded from San Francisco or Berlin totally inadequate. It didn’t take long for us to realise that we had to build something from the ground up that is tailored to the conditions in emerging markets where this technology can have the greatest impact.
BCN: What would you say is Kuva’s key value proposition?
JS: The Kuvacash wallet is the closest thing in the world right now to truly global mobile money. The Kuva blockchain that drives it is a multi-asset blockchain where users have full control and custody of their funds via their mobile devices. No other blockchain has the capability to bridge between cash, the blockchain world and the global banking system. No mobile operating system can do this. It’s probably one of the easiest ways to buy and sell bitcoin and all you need to transact is a phone number.
BCN: In the past few years, many African central banks have turned from being skeptical of blockchain to becoming leading supporters of this technology. Do you see this as a good thing?
JS: When the internet first came out, there were many skeptics but soon government and industry realised that this was a tool that could grow economies and provide efficiencies. So now we see almost all governments globally championing e-government services, as the benefits are clear and totally outweigh early misgivings. Blockchain technology has the same transformative potential as the internet. In a century, there are very few moments that afford poorer nations the opportunity to rapidly improve the well being of their citizens. It’s critical that African central banks and governments not only embrace this technology but encourage and enable innovation in this space. We are seeing this happen in Latin America as well.
BCN: Some organizations have advocated for what they call private-public partnership as one way of ensuring that CBDCs created by central banks are going to succeed. Do you agree with this?
JS: Historically government-funded agencies like NASA attracted some of the best engineers in the world. However, unlike industries like aerospace, almost all of the technical and strategic blockchain expertise resides in the private sector. Very little government investment has gone into this space which is as strategic as aerospace, so cooperation with the private sector is critical to fill the gap.
BCN: Given your experiences both as an entrepreneur and as someone who has seen the effects of inflation first-hand, do you believe that blockchain is potentially the panacea or part of the solution to the common challenge of currency depreciation?
JS: I feel that the blockchain is only part of the solution because, for example, the buying power of USD stablecoins will depreciate with the USD. It’s one of the reasons Kuva built a multi-currency blockchain in the first place so that it is possible to seamlessly switch to whichever currency is doing the best job of retaining its value.
BCN: It appears that cryptocurrency regulations are becoming tighter both in developed and developing countries. This, unfortunately, affects the growth and adoption of cryptocurrencies. What do you think the crypto community needs to do to reassure paranoid regulators and skeptics?
JS: We know firsthand that most people who own crypto are everyday hardworking people who want to send their kids to school, and have no problem at all with adhering to reasonable know-your-customer processes. They equally don’t want to see nefarious activity. The interesting thing is that blockchain technology is actually much better equipped to provide transparency and traceability that cash just doesn’t have. It’s important that regulators see this community as a useful ally that can provide tools to counter money laundering and financing of nefarious activity. Very few are talking about how we can actually be on the same side and share the same goals when it comes to consumer protection.
What are your thoughts about this interview? Tell us what you think in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
To many individuals, the yr 2020 will in all probability go down in historical past as one of the consequential of the century. In any case, it was the yr when governments, well being professionals, and enterprise house owners all appeared to have a standard objective: stopping the unfold of Covid-19 in any respect prices. Certainly, in a majority of the circumstances, stopping the unfold of the virus was mentioned to require shutting down economies and forcing the scared lots to remain indoors. These measures, in flip, compelled extraordinary folks to search out methods to hold on with their lives with out offending governments or with out exposing themselves to the virus. It’s these circumstances that dropped at the fore the significance of an equally consequential innovation — blockchain expertise.
Kuva Seeks Answer for Crypto’s Uneasy Relationship With Regulators
As some research have proven, the adoption or use of blockchain expertise has surged because the second quarter of 2020. The innovation’s surge in recognition might have satisfied many central banks and governments to noticeably think about using the identical when creating their very own digital currencies.
Nevertheless, regardless of the innovation’s obvious success and acceptance by stakeholders, many regulatory our bodies and governments, together with the Biden administration, are nonetheless making an attempt to stifle the blockchain trade. Thankfully, this has not stopped innovators and entrepreneurs from making an attempt to make enhancements on present chains or from creating new blockchains simply as James Saruchera, the co-founder and CEO of Kuva has accomplished.
In his response to questions from Bitcoin.com Information, Saruchera, a Zimbabwean native who’s now based mostly within the U.Okay., explains why it is crucial for governments and regulators to see the crypto and blockchain group as allies. He additionally shares a few of the explanation why his firm selected to construct its personal blockchain as a substitute of utilizing established chains.
Beneath are Saruchera’s responses to questions despatched by Bitcoin.com Information.
Bitcoin.com Information (BCN): Are you able to begin by giving us a quick background about what motivated you to begin this blockchain challenge?
James Saruchera (JS): Maybe except the Chinese language yuan, I doubt anybody can identify a foreign money from a growing nation that’s thought-about a tough foreign money. The impact of that is that most individuals in that a part of the world are confined to cash that loses 10% or extra of its shopping for energy yearly, which means they’re successfully and progressively getting poorer even when they diligently saved each cent all yr. I noticed my very own mother and father’ pension of 30+ years get worn out instantly by hyperinflation. I used to be intrigued by the query of what might occur if billions of individuals had 10, 20, 30% extra spending energy every year simply by with the ability to defend the worth of what they’ve. The blockchain expertise we’re constructing at Kuva (a Shona phrase which means “to have”), has the potential to do that.
The impact of that is that most individuals in that a part of the world are confined to cash that loses 10% or extra of its shopping for energy yearly, which means they’re successfully and progressively getting poorer even when they diligently saved each cent all yr.
BCN: What are a few of the milestones or essential objectives have you ever achieved as a company?
JS: After three years of quiet however intense improvement, simply via phrase of mouth our just lately launched pilot platform already has over 10,000 thousand downloads from customers in 75 nations. We’re simply getting began and are processing over USD$20M so we all know we’re onto one thing.
BCN: Some may argue that there are far too many blockchain initiatives or start-ups on the market and that as a substitute of making your individual, you would have merely labored with what’s already there. How would you reply to that?
JS: Constructing your individual blockchain is undeniably a frightening endeavor, and once we first began we definitely thought utilizing an current blockchain could be the best way to go. The truth on the bottom in growing nations quickly modified this angle. Challenges just like the final mile, interfacing with money, connectivity and different issues render a blockchain being masterminded from San Francisco or Berlin completely insufficient. It didn’t take lengthy for us to grasp that we needed to construct one thing from the bottom up that’s tailor-made to the situations in rising markets the place this expertise can have the best influence.
BCN: What would you say is Kuva’s key worth proposition?
JS: The Kuvacash pockets is the closest factor on this planet proper now to really international cell cash. The Kuva blockchain that drives it’s a multi-asset blockchain the place customers have full management and custody of their funds by way of their cell gadgets. No different blockchain has the aptitude to bridge between money, the blockchain world and the worldwide banking system. No cell working system can do that. It’s in all probability one of many best methods to purchase and promote bitcoin and all it’s good to transact is a cellphone quantity.
BCN: Previously few years, many African central banks have turned from being skeptical of blockchain to changing into main supporters of this expertise. Do you see this as factor?
JS: When the web first got here out, there have been many skeptics however quickly authorities and trade realised that this was a instrument that would develop economies and supply efficiencies. So now we see virtually all governments globally championing e-government providers, as the advantages are clear and completely outweigh early misgivings. Blockchain expertise has the identical transformative potential because the web. In a century, there are only a few moments that afford poorer nations the chance to quickly enhance the properly being of their residents. It’s crucial that African central banks and governments not solely embrace this expertise however encourage and allow innovation on this area. We’re seeing this occur in Latin America as properly.
BCN: Some organizations have advocated for what they name private-public partnership as a technique of making certain that CBDCs created by central banks are going to succeed. Do you agree with this?
JS: Traditionally government-funded businesses like NASA attracted a few of the finest engineers on this planet. Nevertheless, in contrast to industries like aerospace, virtually all the technical and strategic blockchain experience resides within the personal sector. Little or no authorities funding has gone into this area which is as strategic as aerospace, so cooperation with the personal sector is crucial to fill the hole.
BCN: Given your experiences each as an entrepreneur and as somebody who has seen the consequences of inflation first-hand, do you consider that blockchain is probably the panacea or a part of the answer to the frequent problem of foreign money depreciation?
JS: I really feel that the blockchain is barely a part of the answer as a result of, for instance, the shopping for energy of USD stablecoins will depreciate with the USD. It’s one of many causes Kuva constructed a multi-currency blockchain within the first place in order that it’s attainable to seamlessly change to whichever foreign money is doing the very best job of retaining its worth.
BCN: It seems that cryptocurrency laws have gotten tighter each in developed and growing nations. This, sadly, impacts the expansion and adoption of cryptocurrencies. What do you suppose the crypto group must do to reassure paranoid regulators and skeptics?
JS: We all know firsthand that most individuals who personal crypto are on a regular basis hardworking individuals who wish to ship their youngsters to high school, and haven’t any downside in any respect with adhering to affordable know-your-customer processes. They equally don’t wish to see nefarious exercise. The attention-grabbing factor is that blockchain expertise is definitely a lot better outfitted to supply transparency and traceability that money simply doesn’t have. It’s essential that regulators see this group as a helpful ally that may present instruments to counter cash laundering and financing of nefarious exercise. Only a few are speaking about how we will really be on the identical aspect and share the identical objectives with regards to shopper safety.
What are your ideas about this interview? Inform us what you suppose within the feedback part under.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct supply or solicitation of a proposal to purchase or promote, or a suggestion or endorsement of any merchandise, providers, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, instantly or not directly, for any harm or loss prompted or alleged to be attributable to or in reference to using or reliance on any content material, items or providers talked about on this article.
