The paper money became so instrumental in completing a project of paving the roads. The similar community currency came into existence in China and Canada. Therefore, Paper vouchers are not so new in the world trade. However, some governments consider them suspicious and to some extent a threat to the national currency. In Australia, the paper voucher was declared illegal shortly before it picked up.
The question is, is the paper voucher important?
According to Will Ruddick, the paper vouchers are so crucial because they bridge the poor to the existing economy that cuts them off from monetary exchanges. At the same time, this is the only way of improving trade in the local communities.
For instance, Gatina –Pesa in central Kenya, came into existence as a paper voucher. Today, the locals are using the same to pay school fees, buy foodstuffs, and trade in other small businesses that run their day to day needs. At Gatina high school, Francis Wanjala- a teacher acknowledges that Gatina-Pesa is for purchasing school food and ingredients for lunch from the local trading center.
It is his- Ruddick’s joy that the Gatina money is going digital based on the blockchain digital tokens. Through Bancor, a Switzerland based company known for decentralized cryptocurrency trading platform; Ruddick is trying to get a solution for trading in different cryptos in Kenya.
For example, exchanging the Bangla-Pesa in Mombasa with Gatina Pesa is not easy. For that reason, the digital money will automatically convert the different cryptos to suit the trade. Kenya is one of the most open markets to digital trade with MPESA taking the lead.
The essence of the cryptos is not to create a new currency in the nation. That is a great fear that sends chills to many governments. However, Niforos, the founder of business advisory firm Logos Global Advisors in Paris, warns on the dangers in the initial stages of blockchain development.
According to Niforos, the early stages should be watertight to guarantee the security and stability of the protocol. Otherwise, digital currency saves on a lot of printing costs of the paper vouchers.
Using the digital currency is easy, one needs to dial a code and the menu text will show up. The estimation says that close to 1,200 businesses are currently using the cryptocurrencies in Kenya. That shows how the country is open to financial technologies.