How blockchain technology could revolutionise microfinance in Cambodia
Friday, July 27, 2018
By Robin Spiess
With the rise of microfinance institutions (MFIs) in Cambodia, microfinancing is more accessible than ever. But the industry remains plagued with high interest rates, and borrowers can find themselves paying back more on their microloans than they bargained for.
A small four-man team of tech-enthusiasts believe they might have an answer to cutting interest rates on microloans across the Kingdom: a decentralised loan system backed by blockchain technology.
The team’s startup, called The DApact, relies on digitised processes to cut costs: initial funds are raised through crowdlending platforms as digital coin, loan underwriters are paid in cryptocurrency, and all transactions are backed by the Ethereum blockchain.
Photo courtesy of aaron gilson.