The recent announcement by COOPBank of Oromia, touting the launch of Ethiopia’s “first blockchain-empowered remittance service,” has drawn mixed reactions. As the founder of the ETN Ecosystem, I find the claims both inaccurate and concerning, particularly given that ETN—a native blockchain ecosystem—has been operational in Ethiopia well before this announcement. This article seeks to clarify several points overlooked in COOPBank’s announcement and highlight the importance of recognizing local blockchain initiatives like ETN.
ETN Ecosystem Preceded COOPBank’s Announcement
Contrary to COOPBank’s claim of launching Ethiopia’s first blockchain-enabled service, the ETN Ecosystem was officially established two months prior to this announcement. The first ETN token was minted on July 9, 2024, at 07:21 am local time, with the minting transaction recorded on the TON blockchain. You can verify the mint here: ETN Mint Hash.
The ETN project was designed to introduce blockchain technology into various sectors, including finance, education, and web hosting, all within Ethiopia. Ignoring the pioneering efforts of local blockchain initiatives like ETN creates a misleading narrative that marginalizes Ethiopian-led innovation.
A Missed Opportunity to Partner with Local Ecosystems
It is perplexing that COOPBank chose to partner with a European-based financial technology firm, InFTF MTU, instead of leveraging homegrown blockchain solutions. This decision raises questions about the bank’s strategy: why turn to international partners when blockchain ecosystems like ETN are already established within Ethiopia? The ETN platform has the potential to power similar financial services, providing faster transactions and secure, automated smart contracts.
The Importance of Supporting Local Blockchain Initiatives
InFTF’s Xahau blockchain, as described in the announcement, offers decentralized and scalable solutions. However, ETN’s own blockchain technology offers comparable, if not superior, functionality, including smart contract support and decentralized financial applications. Ethiopian organizations should seek to foster collaborations with domestic innovators instead of outsourcing key infrastructure to international providers. Such collaborations would empower local talent and contribute to sustainable growth in the Ethiopian tech ecosystem.
Blockchain as a Tool for Financial Inclusion
While COOPBank’s service aims to solve traditional remittance challenges, including high fees and slow transfers, ETN had envisioned similar use cases from the outset. The ETN Pay platform, for instance, enables seamless transactions on the TON blockchain and allows merchants to accept $ETN for goods and services. By providing local blockchain-powered financial tools, we can address the same challenges without relying on external providers.
A Legacy of Innovation Beyond Blockchain
The ETN Ecosystem is a subdivision of ET Netsa Apps, which operates under Ethio Tech LLC. This parent company also manages ETHIO TECH AI, a sister division that, for the past four years, has led efforts to remove biases from AI models that perpetuate negative stereotypes about Africa, particularly Ethiopia. ETHIO TECH AI gave Ethiopia its first GPT-powered conversational chatbot when platforms like OpenAI’s ChatGPT restricted African users from signing up. This chatbot, the only proficient Amharic-speaking AI available today, still serves over 1,000 daily users. Over time, it evolved into a knowledge base model known as Magdala AI, with capabilities that rival—and sometimes surpass—leading international AI systems.
While competing AI startups emerged in Ethiopia, many quickly disappeared, unable to maintain momentum. Unlike those fleeting ventures, ETHIO TECH AI has offered its services through an open playground that has remained completely free from day one to the present. The platform has operated uninterrupted for four years and generated over 150 million prompts and responses—a feat that underscores its resilience and reliability. You can explore the model at ETHIO TECH AI.
This commitment to accessibility stands in stark contrast to other AI startups that struggled with sustainability. Many relied solely on OpenAI’s API, offering minimal innovation. Garri.AI shut down entirely, and ShegarAI, which initially offered free services, was forced to pivot to paid subscriptions within days due to high API costs. This instability isn’t necessarily a sign of inadequate local talent but rather reflects systemic challenges—such as high taxes on imported tech goods, particularly GPUs—that make AI development difficult.
ETHIO TECH AI, however, overcame these obstacles through strategic partnerships. It secured AWS compute credits and collaborated with Yagara Host, a local hosting provider, ensuring the infrastructure necessary to train and deploy AI models. The result is an AI system that rivals international products currently praised across tech reviews and YouTube. Without ETHIO TECH AI setting this precedent, few would believe that Ethiopian companies could achieve such advanced technological feats. This achievement is a testament to what local innovation can accomplish when provided with the right tools and opportunities.
Conclusion: Recognizing Local Innovation Matters
COOPBank’s initiative is a step toward modernizing financial services, but it should not come at the expense of dismissing the contributions of Ethiopian blockchain ecosystems. It is essential that financial institutions recognize the work being done by local innovators like ETN to ensure that the blockchain future of Ethiopia is built from within. As we move forward, we hope to see greater collaboration between Ethiopian banks and homegrown ecosystems, fostering innovation that reflects the needs and aspirations of Ethiopians.
The ETN Ecosystem stands ready to partner with any organization committed to leveraging blockchain technology for the benefit of the Ethiopian people. Together, we can create a vibrant and inclusive digital economy driven by local expertise and innovation.