In recent years, the growth of cryptocurrency and blockchain technology has captured the attention of investors worldwide. While many in the West see it as a speculative trend, crypto executives in Africa emphasize that blockchain technology is actively tackling pressing issues faced by the continent. From hyperinflation to corruption, these innovative solutions are providing Africans with greater financial inclusion and control over their money.
The crypto executives laud Bitcoin’s influence in Africa
According to Chris Maurice, the founder and CEO of Yellow Card, Africa’s largest cryptocurrency exchange, crypto adoption on the continent is expanding rapidly. Unlike in the West, where it can feel like a casino, cryptocurrency in Africa addresses real-world problems in banking and currencies. The most common use cases involve international payments, remittances to friends and family, and safeguarding against inflation. The crypto executive believes that crypto in Africa closely aligns with the original mission of the technology.
In many developing nations, hyperinflation and corruption have severely limited citizens’ options for financial security. Kevin Imani, the founder and CEO of Sankore 2.0, highlights blockchain-based payments as a human rights technology. Cryptocurrencies offer a lifeline to individuals in underdeveloped countries, granting them greater financial inclusion and control over their money. As Sub-Saharan Africa experienced an estimated inflation rate of 14.5% in 2022, the highest since the 2008 recession, the need for alternative financial solutions becomes even more critical.
For Okoye Kevin Chibuoyim, the founder and CEO of GIDA, a crypto education platform in Nigeria, cryptocurrency represents Africa’s next shot at life. The crypto executive compares it to the internet revolution of the 2000s, where Africans were not as exposed as they are today. Chibuoyim points out that Africans have grown accustomed to unaccountable and non-transparent governments, but blockchain technology’s inherent transparency instills trust in the system.
Collaboration and investments have helped the blockchain industry grow in Africa
Recognizing the potential of the African market, companies like Block, led by crypto executive Jack Dorsey, have partnered with local entities. In April, Block collaborated with Yellow Card to facilitate cross-border payments in Africa using its infrastructure. This collaboration aims to harness the benefits of blockchain technology and foster financial inclusion across the continent. The region experienced an impressive 11-fold increase in venture capital funding in 2022, following a 2,500% surge in cryptocurrency users the previous year.
While blockchain technology is gaining momentum in Africa, it is essential to consider the legal and regulatory environment. Different countries have varying levels of clarity regarding cryptocurrency regulations. Maurice highlights Botswana as having the most legal and regulatory clarity. However, countries such as Cameroon, Central African Republic, Gabon, Guyana, Lesotho, Libya, and Zimbabwe have reportedly declared cryptocurrency as illegal, according to Investopedia.
Blockchain technology and cryptocurrencies are transforming Africa by addressing real-world challenges faced by its citizens. From combating hyperinflation to providing greater financial inclusion, crypto adoption on the continent is growing at an impressive pace. Africans are embracing this opportunity to be part of something great, leveraging blockchain technology’s transparent nature to build trust in financial systems. With strategic partnerships and increasing venture capital investments, Africa’s blockchain revolution shows promise in shaping a brighter future for the continent.
