Sierra Leone’s Ministry of Technology has signed a Memorandum of Understanding (MoU) with Sign, a blockchain-based verifiable credential institution, to develop a National Blockchain Infrastructure.
The first phase of the initiative will focus on creating a digital identity system and a local stablecoin payment framework, aimed at providing citizens with secure and inclusive digital services at low costs.
The partnership also involves a collaboration of key stakeholders, including the minister of finance and the central bank governor, and representatives of Christex Foundation, a non-profit blockchain education organization in Sierra Leone.
During the visit, the Sign team met with these key actors to reach a consensus on the technology roadmap, policy coordination, and implementation plans.
In 2019, Sierra Leone took a similar path by collaborating with Kiva Protocol, a US-based non-profit, to launch a digital identity platform described by the Sierra Leonean government as “Africa’s first blockchain and decentralized digital identity implementation.”
The collaboration was designed to address two major challenges: a lack of formal identification and a lack of verifiable credit history.
Even six years ago, Sierra Leone recognized the importance of verifiable digital identities and the potential of distributed ledger technologies.
The new partnership with Sign represents another feat in the nation’s path toward digital economic transformation.
Sierra Leone’s Renewed Focus on Blockchain Technology
Sierra Leone first applied blockchain technology during the 2018 presidential election, in partnership with Agora, a Swiss startup. The partnership involved using blockchain technology in managing voting and electoral processes.
After citizens had cast their votes, the votes were validated and manually recorded on a permissioned blockchain by authorized persons. The recorded votes were made available for everyone to view, just like in a public blockchain.
This innovation not only minimized electoral fraud, which was a norm in Sierra Leonean elections, but also reduced electoral costs and improved voter transparency, marking the first recorded use of blockchain technology in a national election.
Since then, Sierra Leone has continued to develop initiatives to enhance the application of blockchain technology in other sectors within the country.
Very recently, the government hosted the country’s ambassador to China, Abubakarr Karim, and several blockchain experts from Felei TechCity and Sovereign Infrastructure for Global Nations (SIGN).
During the visit, Salima Monorma Bah, the Minister of Communication, Technology, and Innovation, noted the country’s commitment to leveraging emerging technologies, such as blockchain technology, into vital sectors of the country’s economy.
The experts had revealed their interest in leveraging their expertise to improve Sierra Leone’s digital economy.
The rationale behind the visit was to facilitate an engagement between the foreign experts and relevant government and private stakeholders to identify vital areas where blockchain technology can provide practical solutions.
“This visit highlights the government’s commitment to harnessing blockchain to promote transparency, trust, and innovation in public service delivery,” the ministry said in a statement.
The minister also noted that, besides building infrastructure, having strong rules and clear policies will be crucial in guiding how the country uses blockchain technology.
Moreover, the Ministry of Communication, Technology, and Innovation, as part of the Sierra Leone Digital Transformation Project, has developed a Big 5 AI and Blockchain Hackathon. Successful applicants were recently announced and will be partaking in a 10-day boot camp providing mentorship and practical sessions to enhance artificial intelligence and blockchain technology skills.
Sierra Leone’s renewed focus on blockchain technology targets a multifaceted approach, including public awareness and education, engagement and dialogue, and regulatory development.
Sign’s Vision for National Blockchain Infrastructure
Sign aims to expand its services globally by supporting the development of blockchain infrastructure on a national scale.
According to Xin Yan, CEO of Sign:
“The crypto industry is currently rich in technology but poor in adoption. Investors and our team believe it’s time to unite and tackle the biggest hurdle: engaging with countries. Our goal is to implement progressive solutions that benefit nations while respecting existing regulations.”
The company aims to bridge blockchain technology and real-world adoption by integrating blockchain solutions into governmental frameworks.
“Investors recognize that progressive national-scale projects are key to long-term adoption. Sign is positioned to lead this space.”
Sign recently raised $25.5 million in a strategic funding round led by YZi Labs, following an earlier $16 million investment in January. CEO Yan noted that the funding would enable Sign to establish local operations globally and support the implementation of national blockchain infrastructure projects.
Conclusion
Sierra Leone’s collaboration with Sign marks a landmark achievement and reflects a progressive approach towards a national adoption of blockchain technology.
By leveraging Sign’s expertise, reputation, and strategic funding, Sierra Leone is poised to immensely benefit through improved digital infrastructure and wider blockchain adoption.
Although Sierra Leone lags behind other African countries, such as Kenya, Nigeria, Ghana, and South Africa, in blockchain adoption, initiatives like this, alongside other ongoing projects, could boost institutional investor confidence, accelerate blockchain adoption, and enhance Sierra Leone’s position in the evolving digital economy.
