Blockchain technology is making a significant impact in Africa by addressing real-world challenges such as hyperinflation and corruption, according to industry executives interviewed by Cointelegraph.
Chris Maurice, the CEO of Yellow Card, Africa’s largest cryptocurrency exchange, highlighted how crypto is enabling Africans to escape the failures of traditional financial systems and conduct transactions more freely.
He emphasized that cryptocurrencies are solving genuine problems related to banking, currencies, and inflation on the continent, unlike the perception of crypto as a speculative casino in the West.
The adoption of crypto in Africa has been remarkable, with the region boasting more crypto users than North America or Europe.
Six of the top 20 countries worldwide for cryptocurrency usage are in Africa. This demonstrates that Africa is emerging as a crypto continent, as stated by Maurice.
Kevin Imani, the CEO of Sankore 2.0, affiliated with the Near Protocol, sees blockchain-based payments as a human rights technology, providing financial inclusion and control over money to individuals in underdeveloped nations who face hyperinflation and corruption.
The inflation rates in Sub-Saharan Africa reached an estimated 14.5% in 2022, the highest annual change since the 2008 recession, according to Statistica.
Imani highlighted the ability of cryptocurrencies to counter weak national currencies and corruption, making peer-to-peer crypto transactions an attractive choice for many Africans.
From Lagos to Nairobi, Accra to Cape Town, Africa is becoming a hub for tech innovation, as various tech startups and initiatives contribute to the continent’s digital transformation.
Okoye Kevin Chibuoyim, the CEO of GIDA, a crypto education platform based in Nigeria, sees crypto as Africa’s next opportunity for empowerment and participation in something great.
He believes that blockchain’s transparent nature builds trust among Africans who are accustomed to unaccountable and opaque governments.
The potential of cryptocurrencies in Africa has also attracted international partnerships, such as the collaboration between Block, a U.S. digital payments firm led by Jack Dorsey, and Yellow Card to facilitate cross-border payments in Africa.
The rapid growth of cryptocurrency users in Africa in 2021, with a 2,500% increase, led to an 11-fold explosion in venture capital funding in 2022.
Maurice specifically pointed out the enthusiastic adoption of cryptocurrency by Nigerians, stating that 47% of Nigerians own or transact with crypto on a daily basis.
However, there are still countries in Africa where cryptocurrency is reportedly illegal, such as Cameroon, Central African Republic, Gabon, Guyana, Lesotho, Libya, and Zimbabwe, according to Investopedia.
Overall, blockchain technology and cryptocurrencies are addressing real-world challenges in Africa and providing financial inclusion and control over money to individuals who face hyperinflation and corruption.
The adoption of crypto in Africa is growing rapidly, with the continent becoming a major player in the crypto space and a hub for tech innovation.
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