Deep Dive into Payment Challenges and Opportunities for Sierra Leoneans Earning in Cryptocurrency with Mocha
Introduction
Sierra Leone, a country in West Africa, faces numerous economic challenges, including high levels of poverty, limited financial infrastructure, and a predominantly cash-based economy. However, as digital currencies become more widespread, some Sierra Leoneans are exploring cryptocurrencies as an alternative means of earning and storing value. Despite the potential benefits, there are significant challenges and opportunities associated with using cryptocurrencies in Sierra Leone. This write up explores these payment challenges and highlights how innovative Blockchain solutions, like Mocha, is helping to address them.
According to the World Bank, a large proportion of Sierra Leone’s population remains unbanked. This limits access to traditional financial services and makes digital currencies an attractive alternative. The country’s economy is highly susceptible to external shocks, with fluctuating commodity prices impacting income stability. Cryptocurrencies can offer a hedge against local currency volatility. Remittances constitute a significant portion of household income in Sierra Leone. Cryptocurrencies offer a cheaper and faster way to receive remittances compared to traditional channels.
Sierra Leone cryptocurrency challenges
- Limited Acceptance and Infrastructure -Few local businesses accept cryptocurrencies for payment, limiting the utility of digital earnings. Cryptocurrency ATMs and Point of Sale (POS) systems are virtually non-existent, making it difficult to convert digital assets into local currency.
- The regulatory environment for cryptocurrencies in Sierra Leone is unclear, creating uncertainty for users and businesses. Without clear regulations, there is always a risk of government crackdowns on cryptocurrency activities, which can disrupt usage.
- Limited internet penetration and high costs of mobile data make it challenging for many to access cryptocurrency platforms. A significant portion of the population lacks the technical skills needed to effectively use and manage cryptocurrency wallets and transactions.
- The lack of regulatory oversight makes cryptocurrency transactions susceptible to fraud and scams. Users face the risk of hacking and other cybersecurity threats, which can result in the loss of digital assets.
- Cryptocurrencies are known for their volatility. This can lead to significant fluctuations in the value of earnings, creating financial instability for users.
Mocha : A Solution to Payment Challenges
Mocha is a fintech platform leveraging USSD technology to bring blockchain-based financial services to individuals without internet access or smartphones, primarily targeting the African market. It aims to provide a seamless, secure, and inclusive financial experience using the Solana blockchain.
Mocha is also a WhatsApp-based payments platform that enable Sierra Leoneans in the diaspora to send money back to their relatives in Sierra Leoneans. Traditionally, remittances are slow, Expensive, the likes of Western Union and MoneyGram can charge up to 20% in fees and it’s also inconvenient. Specifically in Sierra Leone. $321 million was remitted in 2023. Yet, remittances and recipients are willing to go through the trouble because there is no better option.
Mocha is a combination of Solana, local on and off-ramps and USDC. Depending on where you are in the world you would have different cash out options. So in Sierra Leoneans you can cash out locally with the mobile money. If you’re in the UK, US, Europe or Nigeria Mocha partners there would off-ramp directly into your bank account. So it’s literally that simple to send money to anywhere in the world.
After highlighting the problem of expensive remittances in Sierra Leoneans, Mocha sought out a problem and solution to the problem. In January, Mocha started OTC services handling international remittances and issued out virtual debit cards.
Mocha offers secure transaction solutions with advanced encryption to protect users’ digital assets. The platform implements stringent verification processes and anti-fraud measures to safeguard transactions. Mocha’s platform is designed to be user-friendly, reducing the technical barriers for new users. To address internet accessibility issues, Mocha has offline transaction capabilities that leverage SMS and USSD technologies.
Mocha enables users to access their digital assets via simple USSD codes, making it usable on any mobile phone, including basic feature phones. Users navigate through intuitive menus to perform various transactions such as checking balances and transferring funds. Transactions are confirmed instantly, ensuring transparency and trust. Utilizes the Squads Protocol to balance security and user control over assets. Aims to empower diverse user groups, including families, traders, and farmers in remote areas, ensuring financial inclusion for the unbanked population.
Approximately 770 million, with 60% using non-smartphones. 330 million individuals in Africa lack access to traditional banking services. Africa sees around $48 billion in remittances, highlighting a significant market for mobile financial solutions. Mocha envisions transforming traditional mobile usage into a gateway for modern financial services, aiming to rewrite the future of finance by combining the familiarity of basic mobile phones with the power of blockchain technology.
To date, Mocha have processed over $140,000 in volume with zero marketing. It’s a clear sign that there’s a product market fit for the solution that Mocha have and is now just going for the process as well. Mocha strongly believe with our solution we can capture it. It’s significant portion of that market. Join Mocha today as they revolutionize finance in Sierra Leone. For more information, visit Mocha , social media planforms via Twitter https://x.com/getmochala Instagram https://www.instagram.com/get_mocha/
Impact of Mocha in Sierra Leone
Typical Examples
A small business owner in Freetown finds it difficult to receive payments from international clients due to high transaction fees and delays associated with traditional banking systems.
By using Mocha, the business owner can accept payments in cryptocurrency and convert them to local currency quickly and at lower costs, improving cash flow and expanding their client base.
A freelance graphic designer earning in cryptocurrency struggles with converting their earnings to local currency and faces issues with high conversion fees and delays.
Mocha provides a seamless conversion service, allowing the freelancer to convert their earnings to local currency and access their funds promptly, enhancing financial stability.
A family in a rural area relies on remittances from a relative working abroad. Traditional remittance services are expensive and slow.
Using Mocha, the relative can send remittances in cryptocurrency, which are then converted to local currency at a lower cost and received faster, improving the family’s financial situation.
Conclusion
The adoption of cryptocurrencies presents both challenges and opportunities for Sierra Leoneans. While there are significant hurdles to overcome, including limited infrastructure, regulatory uncertainty, and technological barriers, the potential benefits are substantial. Solution like Mocha is playing a crucial role in addressing these challenges by providing seamless conversion services, enhancing transaction security. With the right regulatory framework, infrastructure development, and educational initiatives, cryptocurrencies can significantly contribute to financial inclusion and economic empowerment in Sierra Leone.
Author
Ivan Prince Benjamin