By Peter Nalika
With families now living across continents, the need for fast and efficient money transfers is more urgent than ever. Throughout Africa and specifically, Kenya, the responsibility of parents to support their children who are studying abroad is both a proud moment and a financial nightmare. Conventional financial institutions that currently charge high fees. Take a long time to clear transactions and are physically out of reach for many individuals. In the just concluded Africa Bitcoin Conference held in Nairobi. The depiction of decentralized payment solutions highlighted them as game-changers, with the potential to bridge families across borders and strengthen social ties.
New types of payment systems based on decentralized blockchain tools are faster and cheaper than traditional remittance systems. Through the likes of tbDEX by Block,Inc and stablecoin open-source money protocols. Cross-border payments may be made within the blink of an eye while bearing costs that pale in comparison to those of traditional banking systems.
Block, Inc. is a global technology company with a focus on financial services. Made up of Square, Cash App, TIDAL, and TBD, build tools to help more people access the economy.
For a parent in Kenya, this means using a smartphone to transfer money to a child studying in Europe or North America. The funds arrive within just a few minutes, unlike regular bank transfers, and can be used to pay for books or address any emergencies.
Emotional Stability
Traditional transfer services are costly because they take a massive percentage of cash from both the sender and the receiver. In contrast, decentralized solutions allow more money to reach the recipient, reducing the financial burden on families. This reduces strain and improves the emotional and financial stability of parents and children. Decentralizing payment also processes transactions in real-time, creating a specific feeling of proximity.
The decentralization of payment also processes transactions in real-time, creating a specific feeling of proximity. Parents can easily meet the needs of their children by providing for medical bills or funding projects such as academic-related activities. This real-time support helps maintain the same familiar connection even when individuals are very far away from each other.
Most of the traditional banking operations have left out people outside the mainstream banking network. Mobile solutions, that can be implemented with decentralization, come to fill this gap. Such a format makes it possible for families in regions that are rural or lack proper services to embrace global financial frameworks thus equalizing the society.
As we can all witness, decentralized payments are not only about efficiency – they are about social change and revolution. For many Kenyan families, the possibility of successfully transferring and receiving money may be a question of whether a child is going to be able to continue education in another country or not.
While the potential of decentralized payment solutions is huge, challenges abound, including regulatory issues and the need to familiarize the population with blockchain solutions. Governments and technology providers must develop a policy that would foster innovation in the development of the technologies use while at the same protecting its users. Efficiency and clarity to everyday users will play the most decisive role in the popularization of the technology.
Payment solutions are not just traditional technological breakthroughs; they serve as essential tools that help families stay in touch, regardless of distance.
It is for this reason that the Africa Bitcoin Conference rallied delegations to prepare for a decentralized, inclusive, and above all, human future of cross-border payments. By adopting these innovations, families across Africa and other parts of the world can hope for a future where distances and financial constraints do not hinder their communication.
