Decentralized Crypto Loans Are Gaining Popularity in Nigeria

Decentralized Crypto Loans Are Gaining Popularity in Nigeria
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DeFi lending and borrowing is now growing popular – backed by personal small-stake cryptocurrencies. Many countries around the world are adopting this system for financial access, with Nigeria topping that list.

The trend comes as a saving grace to economies suffering from disrupted worldwide productivity, resulting from COVID-19 and climate change problems.

In Nigeria, the changes have impacted the population’s food security and the sustainability of the production of their goods. Today, over 100 million Africans face harsh emergency standards, increasing by 60% from 2019 to 2020.

Promoting a Better Global Economy

Social reform has long been a goal for the UN’s Sustainable Development Goals (UNDP), but it’s not alone in its endeavors.

The new crypto financial trend seems to be powered less by large organizations, and more by dynamic and local initiatives – through larger organizations make the technology more mobile.

In fact, most crypto loans seem to come from a millennial market. Millennials are now using the cryptocurrency market for economic opportunities and business projects.

And so far, it’s estimated that the African community market is valued at $2 trillion.

More on the Lending Protocol

Called MELD, this is a non-custodial and open-source liquidity protocol. It’s designed to lend and borrow fiat and cryptocurrencies.

Its mission is to provide finance for the bottom 97% of the world population – giving them better financial control over their lives.

MELD is not working alone though. In Nigeria, it’s partnered with the telecom company Tingo – creating microloans with low-interest rates.

Tingo’s initiatives aren’t restricted to crypto though. The company has been a supporter of Nigeria’s tech and agriculture sector – and the democratization of mobile access.

This, it’s predicted that MELD loans may benefit the agriculture sector well. Farmers in Nigeria may now use the protocol to get loans that improve field, crop, and sales effort productivity.

Nigeria’s Tingo and MELD Partnership

Tingo and MELD’s partnerships have caused the massive spread of crypto loans throughout Nigeria.

For starters, Tingo’s platform has 10 million active subscriptions. This naturally provides more flexibility to the new loan market, while attracting new users to the Tingo platform.

Also, the solutions explored by MELD and Tingo complement the current Nigerian digital currency – eNaira.

Both are currently working on a MELD application (called MELDapp), designed for Tingo users. It’ll affect over 9 million phones, turning Nigeria into the world’s 2nd largest crypto market. Also, they are in the process of preloading the application to all devices using Tingo’s ecosystem.

Integrating Lending Products

Adding lending products is beneficial for MELD. Through Tingo, it allows MELD to export its DeFi services to other countries.

This lets MELD offer borrowing and lending services on a wider scale, letting them benefit from the company’s self-pay and low-interest rates for all its users.

Tingo – Not the Only Partnership

MELD isn’t only working with Tingo. It also aims to provide internet access to people around the world.

The company has just recently started work with World Mobile – creating financial instruments that allow internet access in deprived areas.

Africa is currently its key market, and Cardano is joining the fray in those efforts.

CUDOS is another partner of MELD – being a decentralized cloud computer network. This partnership aims to spread MELD’s service on an even larger scale, without being restricted to just a single network.

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