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Switzerland-based crypto firm, Cardano, to offer DeFi loans to Africans

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Cardano, a proof-of-stake blockchain platform, has revealed plans to double down on African market, making loans available to Africans through decentralised finance (Defi).

According to the founder of IOHK [creator of Cardano], Charles Hoskinson, Cardano’s credit plans for Africans will commence in 2022, as the Switzerland-based crypto company moves to expand its influence in the continent.

DeFi loan is a form of lending crypto to someone, and then generate an interest on the asset when returned by the borrower.

Cardano will be making use of peer-to-peer feature on its DeFi platform to provide loan request, Hoskinson said during a YouTube monologue about his company’s plan for Africa on Monday.

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“My goal for the second half of 2022 is to figure out how to put all the pieces together to get an end-to-end microfinance transaction on Cardano.

“So that a real person in Kenya or somewhere with a blockchain-based identity and credit score, stablecoin on the other side, Cardano is the settlement rail. Peer-to-peer, person-to-person, click a button, loan goes to them. They pay it back, (and it) goes to the other side.”

The parent company of Cardano, which trades in cryptocurrency market through Ada, is also sponsoring education opportunities for African kids with support from European Business University of Luxemburg.

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