Sarafu-Credit: A New Approach to Community Currencies

Sarafu-Credit is a community currency that allows individuals to earn and spend credits in their local community. It's a new approach to traditional currencies that's gaining popularity.

In Kenya, for example, Sarafu-Credit was introduced to help local businesses thrive during the pandemic. By using Sarafu-Credit, individuals can support their community and earn credits that can be redeemed for goods and services.

Sarafu-Credit is issued by local organizations and can be earned through various activities such as volunteering or participating in community events. This approach encourages community members to work together and support each other.

The Sarafu-Credit concept is all about giving people more control over their financial lives. It's a system that allows individuals to create their own credit scores, based on their own behavior and financial history, rather than relying on traditional credit bureaus.

In this system, credit scores are calculated based on a person's financial habits, such as saving and borrowing money, and their ability to repay loans on time. A good credit score can open doors to better loan terms, lower interest rates, and more financial opportunities.

By giving people the power to create their own credit scores, Sarafu-Credit aims to reduce financial exclusion and make credit more accessible to those who need it most. This is especially important for people who are new to credit or have a limited credit history.

The system uses a combination of digital and traditional methods to verify a person's financial identity and creditworthiness. This includes using biometric data, such as fingerprints or facial recognition, to confirm a person's identity.

Sarafu-Credit is a digital currency that can be earned and spent within a community, allowing individuals to buy goods and services without relying on traditional financial systems.

To use Sarafu-Credit, you need to have a Sarafu account, which can be created for free.

Sarafu-Credit can be earned by contributing to community activities, such as volunteering or participating in local events.

One unit of Sarafu-Credit is equivalent to one hour of community service.

You can redeem your earned Sarafu-Credit for goods and services offered by community members, such as food, clothing, or home repairs.

Sarafu-Credit is a great way to build relationships within your community and foster a sense of belonging.

Community members can list their goods and services on the Sarafu platform, where others can browse and purchase them using Sarafu-Credit.

Sarafu-Credit transactions are recorded on a transparent and publicly accessible ledger, ensuring accountability and trust within the community.

Sarafu-Credit was initially introduced as a stop-gap measure to enable communities to support each other while waiting for technical development.

The number of people using Sarafu-Credit jumped from a few hundred to 40,000+ in a single year, showing its growing popularity.

The Sarafu-Credit system was created to give communities the power to build their own currencies, allowing them to improve living standards and increase economic viability.

Grassroots Economics, a non-profit foundation, has worked with over twenty schools and twelve hundred businesses in Kenya to implement community currencies.

The government of Kenya saw the formation of these community currencies as a threat to the national currency, but the individuals involved were eventually cleared of all charges.

Sarafu-Credit continues to break new boundaries and change the narrative of alternative economic systems.

The system was developed using existing and developing new open source tools, aiming to give users as many options as possible to create their own community currencies.

Donor funds could be linked to a Community Interest Company (CIC) through various technical means, such as SDG Indexing or independent liquidity pools similar to UniSwap.

The blockchain technology used may change drastically in the next year, making any speculation about its future challenging to foresee.

Requests to access the datasets for Sarafu-Credit should be directed to http://cic-dashboard-frontend-webpage.s3-website.eu-central-1.amazonaws.com/.

Sarafu-Credit is a game-changer for small businesses and individuals alike, providing access to affordable credit and financial services.

By leveraging the power of mobile money, Sarafu-Credit has been able to reach a wider audience and offer more convenient services.

This is evident in their partnership with mobile network operators, which has enabled them to tap into a vast customer base.

Their innovative approach has also led to a significant reduction in transaction costs, making it easier for people to access credit.

One of the most notable benefits of Sarafu-Credit is its ability to provide credit to those who may not have been able to access it through traditional means.

This is particularly important for small businesses, which often struggle to access capital and finance their operations.

As a result, Sarafu-Credit has been able to support the growth and development of these businesses, contributing to economic growth and stability.