By Goth Mohamed Goth
Hargeisa, Somaliland – The Central Bank of Somaliland (CBS) has taken a major stride towards modernizing its financial system by forging strategic partnerships with global leaders Tether, Sorted Wallet, and Global Exchange and Money Transfer (GEAMT). Landmark meetings held in Hargeisa centered on deploying cutting-edge digital solutions to accelerate the nation’s National Financial Inclusion Framework (2023-2028), broadening financial access for all communities.
Key Initiatives Discussed:
- Sorted Wallet’s Inclusive Technology: A highlight was Sorted Wallet’s “non-custodial crypto wallet solution,” specifically designed for basic feature phones and low-spec smartphones. This technology promises to integrate millions of currently unbanked Somalilanders, particularly in underserved rural regions, into the formal financial ecosystem.
- Tether’s Stablecoin for Trade & Remittances: Discussions explored the transformative potential of Tether’s USD₮ (USDT) stablecoin – pegged 1:1 to the US dollar for stability. USDT could significantly streamline cross-border trade with key partners (China, India, UAE, Ethiopia, Saudi Arabia) and simplify vital diaspora remittances originating from the US, UK, and Europe.
- GEAMT’s Role: GEAMT, also Western Union’s Somaliland representative, brings expertise in global exchange and remittances, supporting the overall goal of enhanced economic connectivity.
Leadership & Commitment:
The CBS delegation, led by Chairman Abdinasir Hirsi, Deputy Chairman Hamse Khaire, and Director General Yasin Alas, emphasized Somaliland’s dedication to fostering responsible innovation. Chairman Hirsi stated, “Sorted Wallet’s solution could be a game-changer for financial inclusion, aligning perfectly with our vision for equitable economic growth.”
The international partners were represented by:
* Abdikariim Abdi Adam (CEO, GEAMT)
* Stephen Browne (Co-founder, Sorted Wallet)
* Arnoud Marie Dyve De Bavay (Head of Africa Strategy, Tether)
The Central Bank unequivocally reiterated its commitment to Financial stability, consumer protection, and strict adherence to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. Both sides expressed strong optimism, agreeing to advance negotiations towards a formal partnership agreement.
Building on a Strong Foundation:
These partnerships signal Somaliland’s rising prominence as a Horn of Africa hub for financial innovation. They build upon the nation’s advanced mobile money infrastructure, where services like WAAFI and Zaad have already driven near-cashless economies in urban centers.
The Central Bank extended sincere gratitude to the delegation for their visit and the highly productive discussions, paving the way for a transformative collaboration shaping Somaliland’s financial future.
