Study Plans Blockchain Remit in Tajikistan

Announcements, Blockchain, FinTech, Innovation, News, Regulation | June 28, 2017 By:

Blockchain startup Bitspark has partnered with the United Nations Development Programme (UNDP) to study the potential for blockchain remittances as a solution to improve financial inclusion in Tajikistan.

In a blog post, Bitspart stated that Tajikistan still remains a relatively under-banked country, with an estimated 85 percent to 90 percent of the population without formal banking accounts. Instead, they rely on non-bank services for domestic and international payments, demonstrating potential for new services to assist in improving financial access and inclusion nationwide.

Since blockchain technology is a new concept for Tajikistan, there is an understood skepticism from the bankers and national regulator over its utilization in parallel with the banking system. UNDP and Bitspark is planning a pilot project to overcome that skepticism and demonstrate the advantage of blockchain technology in money transfer and banking operations.

The pilot project would enable migrant workers and their families to send and receive payments via smartphone devices. People are familiar with sending and receiving cash in that manner, and the proposal seeks to streamline that process. Instead of calling a taxi and handing over a bag of cash, users would utilize Bitspark’s digital payments app Sendy for instant, verifiable, trustless payments.

Bitspark is hoping the pilot project will address many of the findings on its recent trip in Tajikistan. The Bitspark team said the application of new financial technologies like blockchain can assist in increasing the number of people with access to the financial system at less cost and at a scale necessary to make an impact. Ultimately, they hope that improves economic opportunities for people in Tajikistan and around the world.