An innovation using the cellular network (GSM) could bring in millions of Bitcoin (BTC) users previously unreached by the internet-dependent Bitcoin protocol. Created by South African developer Kgothatso Ngako, the new SMS-based service is called Machankura, a South African slang word for money.
KG, as his friends know him, spoke to Cointelegraph from Pretoria, South Africa about his fascination with Bitcoin and his hope that sending it as a text will bring BTC to millions of Africans.
Machankura, the #bitcoin for feature phones service in Africa, is slowly growing. https://t.co/TZngXXVhu0
— Derek Ross ⚡5️⃣ (@derekmross) August 8, 2022
As an English speaker, when he was introduced to Bitcoin, he was listening to audiobooks and podcasts on the way to work. His commute to work was lengthened to maximize Bitcoin education. A 20-minute cycle turned into a two-hour drive to the Council for Scientific and Industrial Research (CSIR) in South Africa, where he worked as a software developer. KG also coded Manchakura while working on CRIS.
In another interview, Bitcoin founder Master Guantai Mtaani told Cointelegraph: “The number of mobile phones in Africa is double the number of people.” However, the penetration of smartphones with Internet access remains low.
in Kenya, Guantai’s home country, explains that recharging a phone with airtime is as common as credit card payments in the West. A Caribou report corroborates this statement: 94% of financial transactions in Africa are made through USSD, the protocol used to send text messages, while only 6% of these transactions are made through mobile applications.
In short, although there are millions of phones in Africa, they are mostly used for texting. KG had hit on something that could be huge for Bitcoin adoption in Africa.
“This year, a lot of the conversations in this area were around USSDs or the possibility of accessing Bitcoin through mobile phones: this could be a part-time project, let me create it. And that’s how Machankura was born” .
KG began by creating an African language translation project, Exonumia. He now offers Bitcoin-related education in dozens of languages, explaining to Cointelegraph that if we make Bitcoin more accessible to Africans, then as a consequence they will learn about money and find a way to improve their quality of life.
Once Exonumia gained traction, he wondered, “What are the other barriers to accepting Bitcoin? Language is one, Internet access is the other.” It summarizes the Internet in Africa as a space dominated by big apps like Instagram and Facebook. The inherent problems for smartphone users are having enough space on the phones, internet connectivity and price.
KG explains: “The main purpose is to spend and receive Bitcoin.” KG explains how it works. Users dial a number and are then presented with a menu where they can learn more about Bitcoin or register an account. “All you need to register an account is a 5-digit pin, and from there, you’re presented with a different menu: send and receive Bitcoin.”
Here is Paco, the Bitcoin traveler who keeps teaching people about Bitcoin around the world – demonstrating Machankura to a professor in Nigeria, at the request of Cointelegraph.
Used @Machankura8333 to share some Sats with High school teacher in Lagos, Nigeria.@LumiExc went to this school.#btc #hyperbitcoinization pic.twitter.com/ba5SPAGPLE
— Paco from the ⚡ (@RunwithBitcoin) August 8, 2022
I used @Machankura8333 to share some Sat with a high school teacher in Lagos, Nigeria. @LumiExc went to this school.
As a result, Lightning wallet-enabled apps on phones or computers can send Bitcoin over the Lightning Network to the phone number, which has been converted to a Lightning address. Machankura has integrated with Bitrefill, an increasingly popular Bitcoin prepaid gift card service in Africa. Soon, South Africans will be able to top up their Lighting Wallets with grocery store credit in a partnership with “One for you”, a voucher provider.
As a result, Lightning wallet-compatible apps on phones or computers can send Bitcoin over the Lightning Network to the phone’s number–it has effectively become a lightning address. Machankura has integrated with Bitrefill, an increasingly popular prepaid gift card service for Bitcoin in Africa. Soon, South Africans will be able to top up their Lighting Wallets with credit from grocery stores in a partnership with “One for you,” a voucher provider.
Machankura users can now redeem @Azteco_ (and 1 For You) Bitcoin vouchers using the USSD interface. pic.twitter.com/qkPRwGzkrL
— Machankura 8333 (@Machankura8333) August 10, 2022
As Ngako sums it up, “a person who literally has no internet access can go from having no Bitcoin to having it and then spending it.”
Master Guantai also shares that it is already working well in six African countries. In addition, the popular exchange Paxful has already shown interest in him, explains Guantai, as the ease with which people can be shipped using GSM is not enough.
KG points to a ban or negative reaction of the government to Bitcoin as possible problems with the innovation. The fees for buying the bond could put people off, and the fact that KG understands that by offering a centralized company to get people on board with Bitcoin risks them not spending time learning about the technology.
In addition, the service is custodial, a point that goes against Bitcoin’s ethos of “not your keys, not your coins.” So you are looking for a way to use SIM cards as private keys.
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