Kenyan Banks Seek Regulatory Approval to Use Blockchain Tech
- Central bank sees risks in using distributed-ledger technology
- Application comes as profitability in industry declines
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Kenyan banks are seeking regulatory approval to use distributed-ledger technology, also known as blockchain, to distribute payments and create credit-scoring models to rate potential borrowers.
While there may be benefits in using blockchain-based technology, there is a great risk should it fail or be misused by unscrupulous individuals, the central bank said in a report. “There is thus the need to ensure that robust controls are in place to ensure that the risks and opportunities associated with emerging technologies are balanced.”