Blockchain Basic Income Boosts Local Economies by 240% in Tanzania

Encointer, a Swiss-based NGO pioneering global unconditional basic income through blockchain technology, has released groundbreaking results from its pilot project in Dar es Salaam's Nyota community. The initiative, developed in collaboration with local NGO Jukumu, demonstrates how combining blockchain-based cash transfers with traditional cultural practices can dramatically boost local economies. The most remarkable finding shows that integrating cash transfers with Encointer's local community currencies multiplied the economic impact by an astonishing 240%, transforming how development aid can create sustainable economic growth. The project successfully merged modern blockchain systems with Mchezo, Tanzania's traditional rotating savings system, creating a powerful synergy that strengthened community resilience while stimulating local trade.

The Nyota pilot employed two innovative approaches that both began with blockchain-facilitated cash transfers. In the first method, individuals received direct transfers and pooled their resources through the traditional Mchezo system to fund small businesses in tailoring, food production, and retail. The second approach used cash transfers to create a reserve backing the local digital currency, ensuring it could be exchanged for national currency when needed while keeping funds circulating within the community. The results have been transformative, with over 100 active participants co-creating innovative livelihood strategies. Local entrepreneur Aisha of MoZa Cosmetics exemplifies this success, expanding her customer base from 15 to over 40 clients monthly through the Nyota community currency. Community member Alinagwe Mwaselela notes the strengthened relationships and reduced costs for quality products and services.

Building on these successes, Encointer is scaling its model globally, with new communities already adopting the system in Nigeria. The organization is conducting deeper impact assessments while integrating savings groups and microloan mechanisms directly into their smartphone application, making these powerful economic tools accessible to more communities. Encointer's open-source protocol combines proof-of-personhood, democratic governance, and demurrage-based economics to encourage currency circulation and foster inclusion. Readers can learn more about this transformative approach through the project documentation and watch the pilot video to see the real-world impact firsthand as Encointer works to bring Web3 technology to the Global South in genuinely inclusive ways.