Kotani Pay Secures New Funding for Expansion in Africa
Kotani Pay, a digital currency service provider based in Kenya, has recently raised $2 million in pre-seed funding. The funding round was led by P1 Ventures, a seed investor based in San Francisco, and included participation from Digital Currency Group/Luno and Flori Ventures.
According to a report by Techcrunch, Kotani Pay plans to use the capital raised to expand its services into five African countries: Ivory Coast, Nigeria, Rwanda, Senegal, and Tanzania. This expansion will not only make cross-border remittances easier for the unbanked population in these countries but also fulfill Kotani Pay’s commitment to bringing financial services to Africa’s refugee population.
In addition to facilitating remittances, Kotani Pay has developed software that allows feature phone users to send funds through its platform. Despite the use of blockchain and stablecoins attracting regulatory attention, Kotani Pay has worked with regulated entities to ensure compliance and has seen increasing interest from central banks in developing central bank digital currencies.
Collaborating with Regulated Partners for Compliance
While Kotani Pay’s use of blockchain and stablecoins for cross-border transfers may raise regulatory concerns, co-founder Felix Macharia emphasizes the company’s commitment to working with regulated entities. This approach has provided clarity regarding their operations.
Macharia explains, “We collaborate with local mobile money operators or partner with regulated institutions to ensure compliance. Central banks are showing enthusiasm for these use cases and are even exploring the development of central bank digital currencies.”
Macharia predicts that more African countries will follow in the footsteps of Botswana, Mauritius, and South Africa by implementing regulations for digital asset firms in the future.
Hot Take: Kotani Pay’s Funding Boost Fuels Financial Inclusion in Africa
With its recent funding round, Kotani Pay is poised to make a significant impact on financial inclusion in Africa. By expanding its services into multiple countries and developing software for feature phone users, Kotani Pay is addressing the needs of both the unbanked population and refugees.
Furthermore, their collaboration with regulated entities not only ensures compliance but also garners support from central banks, signaling a growing recognition of the potential of digital currencies in Africa.
Kotani Pay’s efforts demonstrate the transformative power of crypto technology in bringing financial services to underserved populations and driving economic growth across the continent.
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