The first cryptocurrency company to be launched in Kenya was TMX global coin. It was believed that the technology could save the logistic business in Africa from the problems experienced in the import or export sector such as price hikes caused by value chain in the sector.
The cryptocurrency began developing in 2017 as a decentralised protocol that used smart contracts based on Blockchain technologies and solved the problems of both local and international logistics. TMX Global Coin has been growing steadily ever since. In mid-2018, the development process reached a level enough to generate a significant level of credibility in the crypto industry.
The company is using blockchain technology to enhance Cargo logistics business to have more open, transparent and democratic process using a decentralized system, where all the users are able to talk to each other on an open platform.
Various issues had been raised around the logistics business and mostly because of the unaccountability, corruption and illicit trade.
“Using a convenient interface, an importer/customer can find the best online stores from the thousands of options and then choose a suitable freight forwarder to coordinate the cargo shipping through Tmx Global Coin worldwide partners from Asian and European countries,” says the CEO of Tmx Anthony Njoroge.
Through the process consumer is able to order their goods online, track down their goods individually, and get a chance to go through and understand all the required documentation even before they began their trading process.
Its’ objective was to reduce costs and increase shipping efficiency by integrating information about shipments onto a secure platform accessible to shippers, carriers, freight forwarders and others in the supply chain.
TMX Global Coin was the first African coin that offers trans-national freight and logistics on the blockchain in November 2018 where the PS for Transport, Infrastructure, and Urbanization, Kenya, Nancy Karigithu attended the function. She mentioned that she was excited to see such an initiative coming out of Kenya and said her ministry will work with the TMX Global Company to see the realization of such a noble project.
When a customer raises an invoice, it is on a smart contract. This includes all the required documentation needed to ship products. The TMX Global Coin will power the entire ecosystem.
The TMX Global eco system the importers have the advantage of acquiring proper information about where the goods are, the state of the goods and exact location at any time. The company, hopes its blockchain solution will help reduce the tiresome paper work records and eliminate third parties in the system.
The company also uses the Kenya’s M-pesa system for the consumers to access services offered.
This has made trading successful since traders dealing in export and import business would sometimes experience loss of property due to bad documentations. This would occur mostly through poor handwriting during the signing of the documents and loss of the documents too in the process. Where the traders’ perishable products would rot in the port and other suffer money loss in the process.
Kenya, is among the countries in the world that is working towards using the technology in political and economic development. Recently, Wafula Chebukati, the Chairman of the country’s Independent Electoral and Boundaries Commission(IEBC) released a statement saying that the Kenyan government is working seriously towards the utilization of this technology in its electoral system.
However, there are criticisms from the Kenya’s Capital Markets Authority and The Central Bank of Kenya who have expressed their concern about the possibilities and potential risk factors in these new emerging technologies, like the unregulated status of digital currencies and the threat of speculative investments.