Sierra Leone partners to build blockchain-powered digital ID system

Sierra Leone has entered into a partnership agreement with scalable digital infrastructure firm Sign to power its digital transformation with blockchain technology.

According to a news release, a Memorandum of Understanding (MoU) was signed recently between the country’s Ministry of Communication, Technology and Innovation (MoCTI) and the CEO of the California-based decentralized identity company, Xin Yan.

Both parties will collaborate in the design and implementation of “blockchain-powered national digital systems” that will drive Sierra Leone’s digital transformation.

Already, Sierra Leone has a strong foundational identity system, with growing national ID coverage at more than 93 percent. This is facilitating the delivery of public services in the West African country, as part of a national digital transformation drive.

The government hopes to use this partnership to advance its vision of making the country a regional hub for emerging technologies, especially in Artificial Intelligence and blockchain, while improving transparency, financial inclusion, and the delivery of public services.

Hon. Salima Monorma Bah, Minister of Communication, Technology and Innovation, is quoted as saying that the MoU “marks a defining step toward building the digital backbone that will power Sierra Leone’s next phase of inclusive growth and technological leadership.”

Per the agreement, Sign will lead the development of sovereign blockchain infrastructure, including a national digital identity system, a digital wallet platform, and an asset tokenization framework.

“The Foundation will also bring in technical expertise and investment support while working with local partners to promote skills transfer and capacity building,” the release reads.

A local tech innovation hub known as Felei TechCity will serve as the implementation and coordination center of the project, with MoCTI expected to provide policy direction and regulatory guidance in line with national digital transformation objectives.

In line with the terms of the MoU, both partners will jointly look for investment support and a dedicated body will be put in place to manage the funds. The Economic and Commercial Office of the Embassy of Sierra Leone in China will help find potential international investors, experts, and partners to fund Sierra Leone’s blockchain projects.

In addition, the partners will also work together in “shaping national blockchain and digital asset policies, drawing on international best practices and lessons from other countries.”

A timeline for the implementation of the project will be made available soon, with priority action to focus on national digital identity infrastructure, digital wallet integration, blockchain-enabled payment systems, and a framework for asset tokenization.

This blockchain initiative is not the first for the Sierra Leone government. In 2019, it embarked on a blockchain-based platform with support from US non-profit Kiva to facilitate access to financial services, as reported by The Sierra Leone Telegraph. It was described at the time as Africa’s first blockchain-based digital ID initiative.

There’s an increasing adoption of blockchain for digital identity initiatives around the world, as the technology is believed to enhance security and transparency in biometric identity verification. The Global Legal Entity Identifier Foundation (GLEIF), for instance, has been exploring possibilities of a global standard for blockchain-based digital ID.

Article Topics

blockchain  |  decentralized ID  |  digital ID infrastructure  |  financial inclusion  |  government services  |  Sierra Leone  |  Sign