- Cardano and the Ethiopian government have signed a memorandum of understanding
- The new token will either be based on Cardano or run on Cardano itself
Cardano (ADA)’s lead developer has announced plans to create a government-backed utility token for the Ethiopian government. The plan, to be accomplished in collaboration with the government, should streamline payments systems in Addis Ababa.
Decentralized, digital payment system
IOHK CEO Charles Hoskinson revealed during an Ask Me Anything (AMA) session this week that his firm has signed a Memorandum of Understanding (MoU) with representatives of the Ethiopian government. Hoskinson stated that the signatories from the Addis government included officials from the Ministry of Innovation and Technology to partner with them in the development of the new digital payment system.
According to the firm’s CEO, the coin is part of IOHK’s broader ATALA framework that allows easy payments for energy bills and related utilities. The token, according to him, will be initially available in the country’s capital Addis Ababa, which is home to over six million people, before it is spread to other areas. Even though Hoskinson didn’t give much detail, he explained that the project had the potential to streamline services like utilities and public transportation. It is also not yet clear whether the token would run on its own blockchain or it will be a part of Cardano’s network.
Test case for mass adoption
Hoskinson stated during the AMA he believed that working with governments was likely to offer a boost for the proposed token and help develop utility. He added that should the coin become successful, it could become the long-awaited test case for the mass adoption of cryptocurrencies. He stated:
“It has potentially six million users, […] should this become successful, and we will have brought six million people into our space, with a real product that has real demand […] it’s not just a made-up thing; an aspirational which we hope will acquire customers. It’s a government-sponsored monopoly in that respect.”
Besides working on the proposed blockchain-based payment system that the IOHK CEO discussed with the Ethiopian government, Hoskinson said he also held a meeting with the Ethiopian Agricultural Transformation Agency. The agency reached out to Hoskinson, and they held discussions on the potential of the blockchain to solve the major challenges the agency was experiencing.
The above applications fall in line with Hodkinson’s agenda under the ATALA Framework that was launched during this year’s 2019 IOHK Summit held in Miami. The platform’s primary goal is to leverage blockchain technology in order to create viable solutions based on IOHK’s technology to solve real-world problems. The ATALA platform, which is named after an elegant butterfly, has to do with other types of Data what Bitcoin did for money with a focus on decentralization, privacy, control, security and trust.