Cardano-Powered KYC & Digital Identity System for Ethiopia

[Proposal setup] Proposal title

Please provide your proposal title

Cardano-Powered KYC & Digital Identity System for Ethiopia

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

80000

[Proposal Summary] Time

Please specify how many months you expect your project to last

8

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

Ethiopia’s absence of a reliable digital identity system makes KYC costly and insecure, hindering transactions, limiting financial inclusion, and reducing trust in digital and cross-border services.

[Proposal Summary] Project Dependencies

Does your project have any dependencies on other organizations, technical or otherwise?

Yes

Describe any dependencies or write 'No dependencies'

Atala PRISM SDK Serves as the core decentralized identity framework for issuing and verifying credentials. Provides compliance with W3C DID/VC standards, ensuring interoperability and long-term scalability. Allows Ethiopian citizens and institutions to securely exchange verifiable credentials without central intermediaries.

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

Yes

License and Additional Information

This project will be released under an open-source license. All core modules (wallet integration & KYC APIs) will be freely available, enabling developers and innovators across Africa to adopt and extend the solution. This approach maximizes transparency, collaboration, and long-term ecosystem growth

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal.

Identity & Verification

[Campaign Category] Category Questions

Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).

This project is innovative because it localizes Cardano’s Atala PRISM identity tech for Ethiopia, where no Catalyst-funded project has yet addressed national-level KYC integration with Ethiopian ID systems. It combines decentralized IDs with regulatory alignment, something not yet delivered by previous efforts.

Describe what your prototype or MVP will demonstrate, and where it can be accessed.

The MVP will be a mobile wallet integrated with Atala PRISM that can perform ID and face scan verification. It will demonstrate issuance and verification of digital credentials and be accessible through a public beta app (Android) and documentation shared on GitHub.

Describe realistic measures of success, ideally with on-chain metrics.

Success will be measured by on-chain issuance and verification of credentials via Atala PRISM. Key metrics: number of wallets created, credentials issued, and verifications performed on-chain. A realistic target is 500+ verifiable credentials issued and 2,000+ verification checks within the first year.

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

Today, millions of Ethiopians are left out of essential opportunities whether it’s opening a bank account, using e-government platforms, or connecting with services abroad because our country still lacks a secure and citizen-owned digital identity system. Paper-based KYC processes slow everything down, cost businesses money, and remain vulnerable to forgery and fraud.

In a world where trust is the backbone of digital transactions, this gap is holding Ethiopia back from the full promise of digital transformation.

Our Solution: A Citizen-Owned Digital Identity

We propose a Cardano-powered digital identity and KYC verification platform built for Ethiopia. Using Atala PRISM, a decentralized identity protocol, citizens will receive tamper-proof digital credentials stored in their own mobile wallets.

Unlike traditional systems, people not institutions will fully control their identity. This means privacy, security, and the freedom to share credentials instantly and safely with banks, telecoms, remittance services, and government platforms.

What This Looks Like for Citizens

1. Sign Up

• A citizen downloads the mobile app and creates their identity wallet.
• They scan their government-issued ID and complete a quick biometric face scan.

1. Instant Credential

• Once verified, their digital credential is securely stored in their wallet anchored to the blockchain for tamper-proof assurance.

1. Use Anytime, Anywhere

• Need to open a bank account? No more photocopies or long lines.
• Need to register a SIM card? Instant verification.
• Need to access e-government services? One click and done.

With one secure credential, people can move through life and business without being slowed down by paper forms, bureaucracy, or fraud.

Why It Matters for Institutions

• Banks & Fintechs: Cut costs, speed up onboarding, and reduce fraud.
• Telecoms: Instantly verify SIM registrations and stop duplicates.
• Government Agencies: Issue digital licenses, permits, and certificates directly to citizens.
• Remittance & Cross-Border Services: Comply with international standards while making it easier for Ethiopians abroad to connect home.

How It Works Behind the Scenes

• Mobile App Wallet: Where citizens manage their credentials.
• Issuer Nodes: Trusted authorities (like banks or government offices) that issue credentials.
• Verifier APIs: The tools institutions use to instantly validate identities.
• Blockchain Layer: Cardano secures cryptographic proofs without exposing private data.

The architecture is modular, secure, and future-ready ensuring Ethiopia’s ID system can grow alongside the national ID rollout.

Roadmap

• Phase 1 (MVP): Digital ID issuance + onboarding for pilot banks and fintechs.
• Phase 2: Expansion into e-government services, healthcare, education, and diaspora verification.
• Phase 3: Full ecosystem adoption, making Ethiopia a leader in trusted digital identity across Africa.

Alignment with Ethiopia’s National Goals

This platform directly supports Ethiopia’s Digital Transformation Strategy 2025 and complements the National ID program. It doesn’t compete it enhances. By making government-issued IDs usable across digital platforms, both at home and abroad, we lay the foundation for financial inclusion, digital trust, and global recognition.

The Impact

• For Citizens: Control over their digital identity, better privacy, and easier access to services.
• For Businesses: Faster, cheaper, fraud-resistant verification.
• For Government: A secure and scalable infrastructure for public service delivery.
• For the Economy: Stronger financial inclusion and competitiveness in the digital age.

Vision

We imagine a future where every Ethiopian whether in Addis Ababa, a rural town, or living abroad has a secure, portable, and trusted digital identity.

This isn’t just about technology. It’s about empowering people, removing barriers, and unlocking opportunities. By putting citizens at the center, Ethiopia can leapfrog outdated systems and become a continental leader in blockchain-powered identity.

[Your Project and Solution] Impact

Please define the positive impact your project will have on the wider Cardano community

Impact on the Wider Cardano Community

The proposed Cardano-Powered KYC & Digital Identity System for Ethiopia is more than just a national project it’s an opportunity to showcase Cardano’s strength in solving real-world challenges while strengthening the global ecosystem. By localizing Atala PRISM and integrating it with financial, governmental, and business systems, this initiative delivers benefits that extend far beyond Ethiopia.

1. Real-World Adoption at Scale

One of Cardano’s key goals is to power digital trust and financial inclusion, especially in emerging markets. This project makes that vision concrete by:

• Onboarding Ethiopian citizens into a Cardano-based digital identity system.
• Anchoring every issued credential on the Cardano blockchain, generating real transaction activity.
• Opening doors for businesses, fintechs, and institutions to interact with Cardano infrastructure.

With a population of over 120 million people many still excluded from financial services Ethiopia represents one of the largest adoption opportunities for blockchain in Africa.

2. Bringing Atala PRISM Into Action

Atala PRISM has long been a flagship for Cardano, but large-scale use cases are still rare. This project changes that by:

• Issuing verifiable credentials linked to government IDs, passports, and licenses.
• Enabling verification across banks, fintechs, telecoms, and government platforms.
• Demonstrating compliance for KYC across borders—a major global pain point.

For the Cardano ecosystem, this serves as a working showcase of PRISM, proving its value to developers, enterprises, and regulators worldwide.

3. Open-Source Tools for Global Developers

A central commitment of this project is open-source development. Wallet integrations, APIs for credential issuance and verification, and SDKs for fintech onboarding will all be released publicly.

This means:

• Developers everywhere can adapt the modules to their local markets.
• African entrepreneurs and beyond can launch new SSI-based solutions without starting from scratch.
• The Cardano community gains reusable, auditable tools that reduce friction for future projects.

Transparency here not only builds trust but also multiplies Cardano’s global developer capacity.

4. Strengthening Cardano’s Position in Africa

Africa is one of the fastest-growing regions for blockchain adoption, and Ethiopia already has a history of engaging with Cardano. By delivering a functioning digital identity and KYC system, this project positions Cardano as the blockchain backbone for digital trust in Africa.

The ripple effects include:

• Neighboring countries looking to Cardano for similar solutions.
• African fintechs gaining a trusted compliance layer.
• Diaspora communities abroad benefitting from internationally recognized, Cardano-anchored credentials.

This places Cardano at the center of continental-scale adoption.

5. Driving On-Chain Utility and Transactions

Every credential issuance and verification creates activity on Cardano. In the first year, thousands of verifications and hundreds of issuances are expected. Over time:

• Millions of citizens could hold verifiable IDs in their wallets.
• Banks and fintechs could conduct hundreds of thousands of KYC checks annually.
• Global remittance and digital platforms could rely on Cardano for verification.

This generates a sustainable flow of transactions, reinforcing demand for Cardano infrastructure.

6. Unlocking DeFi and Financial Services

A major barrier to DeFi adoption is the absence of compliant identity solutions. By providing a Cardano-native KYC and digital ID system, this project:

• Bridges traditional finance and DeFi.
• Gives Ethiopians compliant access to decentralized services.
• Helps Cardano DeFi platforms integrate verification without sacrificing privacy.

This makes Cardano a regulator-friendly hub for responsible growth in decentralized finance.

7. Building Local Awareness and Capacity

Technology alone isn’t enough. This project also invests in community outreach and training, in both English and Amharic, to:

• Educate developers, students, and entrepreneurs in Ethiopia on Cardano identity tools.
• Involve community members in testing and feedback.
• Build awareness of Cardano as a trusted blockchain brand in Africa.

As more local innovators join in, they will enrich the global ecosystem with African-led solutions.

8. Sending a Global Signal

In a competitive blockchain space, successful deployment of a national-level identity system sends a powerful message:

• Cardano is not just theory it delivers production-ready infrastructure.
• Governance, compliance, and decentralization can work hand in hand.
• Cardano is solving real problems for millions of people.

This visibility attracts developers, businesses, and policymakers, solidifying Cardano’s reputation as a global pioneer in blockchain identity.

Long-Term Impact

This project delivers lasting benefits for the Cardano community:

• Adoption: Millions of potential users from Ethiopia and beyond.
• Utility: A steady stream of on-chain transactions from verifications and issuances.
• Open Source: Reusable modules for developers worldwide.
• DeFi Growth: A compliant bridge between TradFi and DeFi.
• Community Growth: Local training and awareness initiatives.
• Global Reputation: Cardano as the blockchain of choice for national trust systems.

By anchoring Ethiopia’s digital identity future on Cardano, we not only address a pressing national challenge but also set a model for global adoption. The tools, lessons, and outcomes from this initiative will ripple across the ecosystem, strengthening Cardano’s role as the most trusted, inclusive, and future-ready blockchain.

[Your Project and Solution] Capabilities & Feasibility

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Capabilities & Feasibility

I believe I am well-positioned to deliver this project based on my experience and support base around me. I've been in fintech and onboarding processes here in Ethiopia, so I understand how KYC is done these days, where the pinch points are and the amount of money that companies spend on manual screenings. I also have blockchain integration experience and have been observing Cardano's Atala PRISM closely, which provides me with the technical expertise to head this project.

I am not alone in this. I shall have a small but focused team: a technical lead with hands-on experience with blockchain integrations, a legal advisor to make sure all is compliant with Ethiopian ID and KYC legislation, a UI/UX expert to make the wallet easy to use, and community support to help with outreach and usage adoption. This blend of skill should address the main areas needed to offer a solid solution.

For feasibility, there are three main areas I’m focusing on:

1. Technical aspect: Atala PRISM SDK has already been tried elsewhere, therefore, we do not need to reinvent the wheel. The concept is to have an MVP that shows that citizens can scan their ID, authenticate through biometrics, and receive a credential in their wallet that businesses can then verify. I will test this with fintech and banking customers I am already negotiating with.
2. Regulatory side: There is indeed a national ID strategy in Ethiopia, and the aim here is not to rival it but to bring it to the digital platform. That's why I'm proposing a legal advisor to make sure that what we establish is compatible and has an explicit line for adoption.
3. Adoption side: Everything will be done in both Amharic and English, and we will implement training and awareness campaigns so people know how to use the wallet. Feedback from early users will iterate the system before scaling.

In regard to trust and accountability, I will be open. The wallet integration, APIs, and SDKs will be open-sourced in a way that anyone who belongs to the Cardano community can see the work, reuse it, or even improve it. The project will be broken down into clear 2-month milestones (architecture, prototype, pilot, beta, release), and I will offer progress updates openly via GitHub and Catalyst channels. Then there's the last audit and full documentation to make sure the project has been completed and ready to be used by other individuals.

[Milestones] Project Milestones

Milestone Title

Architecture & Compliance Setup

Milestone Outputs

Complete technical architecture design for the digital identity system, including workflow diagrams, API structure, and integration plan. Draft compliance roadmap covering Ethiopia’s KYC/ID regulations. Prepare Atala PRISM environment and development setup to ensure the project can proceed smoothly.

Acceptance Criteria

The architecture document is fully reviewed and approved by the project team, legal compliance is validated and confirmed by the advisor, and the Atala PRISM development environment is fully configured, functional, and ready for developers to begin building and testing the digital identity system without issues.

Evidence of Completion

Completed architecture documents, legal compliance report, screenshots of PRISM environment and code setup, and repository showing initial integration work.

Delivery Month

2

Cost

12000

Milestone Title

Wallet Prototype Development

Milestone Outputs

Develop a working prototype of the mobile wallet that allows citizens to scan IDs, perform biometric verification, and receive verifiable credentials via Atala PRISM. Basic UI implemented for testing and demonstration purposes. Internal tests completed to validate core functions.

Acceptance Criteria

Users can successfully onboard to the wallet, scan official IDs, complete biometric verification with liveness detection, and receive verifiable credentials issued through Atala PRISM. All core wallet functions, including credential storage and retrieval, must demonstrate correct integration and seamless interaction with the blockchain environment.

Evidence of Completion

APK/demo video showing onboarding flow, GitHub repository with code, screenshots or logs confirming credential issuance, internal test report confirming functional prototype.

Delivery Month

4

Cost

20000

Milestone Title

Pilot With Financial Partners

Milestone Outputs

Conduct a real-world pilot with selected fintech and bank partners, testing the wallet’s credential issuance and verification features with actual users. Collect practical feedback from both institutions and early users to improve usability and system reliability.

Acceptance Criteria

At least 50 pilot users are onboarded and verified using the system, and partner fintech/bank organizations confirm that credential issuance and verification are smooth, accurate, and secure. The system must demonstrate reliable functionality in live testing environments and capture user and partner feedback for further improvements.

Evidence of Completion

Pilot report with metrics, screenshots of credential issuance/verification, updated wallet/API features on GitHub, documented feedback summaries from partners and users.

Delivery Month

6

Cost

18000

Milestone Title

Public Beta & Community Onboarding

Milestone Outputs

Launch public beta of Android wallet with full user guides in English & Amharic. Run outreach and training campaigns to onboard users, targeting at least 500 early adopters. Collect feedback to refine wallet UI/UX and support materials before wider rollout.

Acceptance Criteria

The public beta Android app is officially released, and training sessions for users are completed in both English and Amharic. At least 500 users are successfully onboarded, with adoption metrics and feedback collected, analyzed, and used to confirm the wallet’s usability, accessibility, and overall effectiveness.

Evidence of Completion

APK release, user documentation, training session reports, screenshots of onboarding process, adoption statistics, and user feedback summaries.

Delivery Month

7

Cost

15000

Milestone Title

Final Audit, Open Source Release & Reporting

Milestone Outputs

Complete final audit of technical performance, legal compliance, and adoption. Release all project code and documentation as open source. Publish a comprehensive final report with adoption metrics, lessons learned, and roadmap for scaling the digital identity system nationally.

Acceptance Criteria

An independent audit of technical performance, legal compliance, and user adoption is completed and approved. The full open-source repository is live and accessible. A comprehensive final report and adoption roadmap are submitted, demonstrating that all project deliverables have been successfully met and validated against initial objectives.

Evidence of Completion

Audit report, GitHub repository with all code, final project report including adoption metrics and lessons learned, proof of public release and open-source accessibility.

Delivery Month

8

Cost

15000

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

The amount of funds requested for this project is ₳80,000, which covers all the necessary items required to fully design, develop, and implement an identity system on Cardano in Ethiopia.

• Development & Integration (₳35,000): This comprises end-to-end mobile wallet development, integration with Atala PRISM, testing of credential issuing and verifying workflows, and deploying secure, scalable backend infrastructure. These tools make the system technically rigorous and pilot and public beta ready.
• Compliance & Legal Support (₳10,000): Legal and regulatory counsel to confirm the project complies with Ethiopia's national ID and KYC legislation. This is used for advisor fees, review against regulation of technical architecture, and production of compliance materials for institutional partners.
• Infrastructure & Hosting (₳8,000): Reliable servers, cloud hosting, and security infrastructure to host the wallet backend, credential verification APIs, and be online during pilot and public launch.
• Operations & Research (₳20,000): Internal testing, project management, user research, coordination of pilots with bank/fintech partners, and ongoing technical improvements. This ensures smooth delivery, incremental testing, and rapid responsiveness to in-field feedback.
• Community Outreach, Training & Adoption (₳7,000): Onboarding campaigns, workshops, and the production of educational materials in English and Amharic to ensure citizens and institutions understand and can make use of the wallet optimally.

This budget does this through allocating each component of the project adequate resources while keeping the focus on expenditure on quantifiable results. It is linked with milestones that have a well-outlined structure, ensuring accountability and providing open development monitoring for the Catalyst community.

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

This project adds immense value to the Cardano ecosystem by defining a reusable, scalable, and open-source digital identity framework. Every dollar of investment goes directly into funding the deployment of Atala PRISM and Cardano's blockchain infrastructure in a real-world, high-impact use case.

By addressing the national identity and KYC problems of Ethiopia, the platform enables citizens to securely store verifiable credentials, with access to instant, anti-fraud verification being granted to banks, telcos, and government agencies. This reduces operational expense, eliminates paper-based processes, and increases confidence in electronic transactions.

The project also generates long-term value in ecosystems by opening all basic modules as open source. Other developers in Africa can take advantage of, integrate, and use the solution in other African countries and sectors, extending the impact beyond this initial pilot.

Additionally, milestones for funding are tied to tangible deliverables, ensuring accountability, transparency, and quantifiable adoption rates. By displaying successful onboarding, issuance of credentials, and verification in a pilot and public beta, the project proves Cardano's success as a backbone for national digital identity platforms.

Lastly, the project promotes the Cardano ecosystem by:

• Enabling real-world adoption of blockchain-based identity technology.
• Growing Cardano's footprint in financial inclusion and government services.
• Empowering citizens with privacy-preserving, self-sovereign identities.
• The sharing of open-source technology and software that supports developers, business organizations, and other communities across Africa.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes