The year 2020 was a turning point for blockchain technology. As the world shut down to combat COVID-19, the need for resilient, transparent financial systems became starkly evident. In the midst of this shift, a startup called Kuva emerged with a mission to provide financial sovereignty to billions in developing nations. Its co-founder and CEO, James Saruchera, sat down with Bitcoin.com News to discuss why regulators should see the crypto community as an ally, not an enemy.
Personal Motivation: The Scourge of Hyperinflation
Saruchera, a Zimbabwean native now based in the UK, draws on firsthand experience. “My own parents' pension of 30+ years got wiped out in an instant by hyperinflation,” he says. “Most people in that part of the world are confined to money that loses 10% or more of its buying power every year, meaning they are effectively and progressively getting poorer.” This painful reality drove him to explore how blockchain could help people preserve value. The result is Kuva, named after a Shona word meaning “to have.”
Why Build a New Blockchain?
Many would argue that existing blockchains are sufficient. Saruchera disagrees. “Building your own blockchain is undeniably a daunting undertaking, but the reality on the ground in developing countries soon changed our perspective.” Challenges like the last mile, interfacing with cash, and connectivity make blockchains designed in San Francisco or Berlin “totally inadequate.” Kuva built a chain from the ground up tailored to emerging markets. “It's one of the easiest ways to buy and sell bitcoin, and all you need to transact is a phone number.”
Kuva's Key Value Proposition
The Kuvacash wallet is described as “the closest thing in the world right now to truly global mobile money.” The underlying Kuva blockchain is a multi-asset chain where users have full control and custody of their funds via mobile devices. “No other blockchain has the capability to bridge between cash, the blockchain world and the global banking system,” Saruchera claims. Since the pilot platform launched, it has seen over 10,000 downloads from users across 75 countries, processing over $20 million.
Regulatory Misconceptions: The Crypto Community as an Ally
As cryptocurrency regulations tighten worldwide, Saruchera believes the industry must engage constructively. “We know firsthand that most people who own crypto are everyday hardworking people who want to send their kids to school, and have no problem at all with adhering to reasonable know-your-customer processes. They equally don't want to see nefarious activity.” He points out that blockchain technology is “much better equipped to provide transparency and traceability that cash just doesn't have.” Regulators should see this community as a “useful ally” that can provide tools to counter money laundering and terrorism financing. “Very few are talking about how we can actually be on the same side and share the same goals when it comes to consumer protection.”
African Central Banks: From Skepticism to Support
Many African central banks have shifted from being skeptical of blockchain to becoming leading supporters. Saruchera welcomes this. “When the internet first came out, there were many skeptics but soon government and industry realised that this was a tool that could grow economies and provide efficiencies.” He emphasizes that blockchain has similar transformative potential. “In a century, there are very few moments that afford poorer nations the opportunity to rapidly improve the well being of their citizens. It's critical that African central banks and governments not only embrace this technology but encourage and enable innovation in this space.” He notes similar trends in Latin America.
Public-Private Partnerships for CBDC Success
On central bank digital currencies (CBDCs), Saruchera advocates for public-private cooperation. “Almost all of the technical and strategic blockchain expertise resides in the private sector. Very little government investment has gone into this space which is as strategic as aerospace, so cooperation with the private sector is critical to fill the gap.” He argues that governments cannot afford to go it alone.
Is Blockchain a Panacea for Currency Depreciation?
Saruchera is realistic: “I feel that the blockchain is only part of the solution because, for example, the buying power of USD stablecoins will depreciate with the USD.” This is why Kuva built a multi-currency blockchain, enabling users to seamlessly switch to whichever currency does the best job of retaining its value. By providing flexibility, Kuva aims to empower individuals to protect their wealth across different economic conditions.
Conclusion: A Call for Collaboration
James Saruchera's story is a powerful reminder that blockchain innovation is often born from real-world suffering and necessity. His message to regulators is clear: the crypto community is not a threat but a valuable partner in building a more transparent and inclusive financial system. As Kuva continues to grow, it stands as a testament to what can be achieved when technology is designed for those who need it most.