Australia pushes blockchain research for financial inclusion in Papua New Guinea

Due to its decentralized nature, Bitcoin and Blockchain have often been considered as a way for the financial inclusion of the most excluded sectors. And apparently this possible solution has come to Oceania, where the Central Bank of Papua New Guinea, in collaboration with the Australian government, will undertake research on how technology blockchain and Bitcoin as a cryptononeda can help increase the low percentage of citizens involved Of the financial system.

According to the institution, only 15% of Papuans have a bank account, which is not surprising in a country where only 13% of the population is urban, while about 40% live in subsistence farming, Without access to global capital. Papua also has a very rugged terrain, so the road system is scarce and reaching the city - and therefore the banks - is very difficult from the rural areas. In fact, this is one of the least geographically and culturally exploited countries.

For these reasons, the Australian government has granted $ 200,000 to the central financial institution of its neighboring country to study how the blockchain and Bitcoin could help to include the vast majority that constitutes the unbanked population.

Rabbie Namaliu, manager of private innovation and economic growth at Australia-funded Papua government facilities, said that the topics to be studied are, first, whether individuals would participate in the financial system to have the possibility and what is the current problem It does not allow them to do so, how much money can be sent internally, how regulations for identification (KYC) and money laundering (AML) can be applied and how the costs of the banking sector can be reduced. Loi Bakani, governor of the central bank of Papua, commented that the use of bitcoins could be beneficial for this cause.

In addition, Philippa Ryan, a professor at the Law School of the University of Technology in Sydney (UTS) and a technology enthusiast, commented that this could also be the solution to establishing land ownership, a common problem in Papua, and Its main challenge - costs - can now be tackled thanks to Australia. In this way, the blockchain could carry the banking services in this country to where they do not exist.

If you can get a system that is secure and can ensure that transactions will occur when they should and in the correct amounts and you trust them, then you can enter banking services where they do not currently exist. I think it's a really positive move.

Philippa Ryan
Professor at the Law School, Sydney University of Technology (UTS)

THE CHALLENGES
Ryan's opinion is one that, beforehand, other experts have shared. One of them is Rik Willard, founder and director of the Agentic Group, which raised a future where the poorest sectors could buy smartphones for less than $ 5, which will in turn allow them to have digital portfolios and connect to the web without need To meet the, in many cases, difficult requirements that are requested in banks.

However, the challenge posed by Papua New Guinea is perhaps much greater. To start with, the language is a strong barrier: there are about 840 different languages ​​spoken throughout the country, and it is only in Puerto Moresby, its capital, that English is spoken the most. There are even numerous tribes and villages that have their own language and culture, unlike the others.

On the other hand, only 2.3% of the population has used the Internet, the speed is very low and there are few establishments that allow access and only in the main localities. To stay constantly connected would require a SIM card provided by one of the local providers, which certainly also involves other costs.

In spite of everything, the results of the bank's investigations will have to be awaited. If these challenges can be tackled in any way, blockchain and Bitcoin would certainly be a quick and secure solution for all those who can not access banking services.