While many investors in the West may look to cryptocurrencies to speculate on the next big trend, blockchain technology is actually solving “real-world problems” in Africa such as hyperinflation and “corruption,” executives told Cointelegraph.
Speaking to Cointelegraph, Chris Morris, founder and CEO of Yellow Card — Africa’s largest cryptocurrency exchange — said cryptocurrency in Africa is “growing at the speed of light” as it allows many Africans to escape the failures of the traditional financial system and transact more freely.
“Crypto solves real world problems with banks and currencies on the continent, not the casino that can sometimes feel like in the West.”
Morris said the most popular use cases in Africa are making international payments, sending money to friends and family and “saving money against inflation.”
“Cryptocurrency lives in Africa closer than any other part of the world to the technology’s original mission,” he added.
There are more cryptocurrency users in Africa than North America or Europe.
6 of the top 20 countries in the world for cryptocurrency are located in Africa.
Africa is the continent of crypto. https://t.co/NzodcOkMYn
– Chris Morrissey (@chrismaurice) April 24, 2023
Kevin Imani, founder and CEO of Sankore 2.0 – a layer-1 Near Protocol subsidiary – believes that blockchain-based payments can act as a human rights technology:
“It is important to recognize the human rights protections it provides to people in underdeveloped countries. In many developing countries, the pressures of hyperinflation and corruption have left citizens with few options.”
He added, “Cryptocurrencies offer a lifeline for these individuals, providing greater financial inclusion and control over their money.”
According to Statistica, inflation rates in sub-Saharan Africa will reach nearly 14.5% in 2022 – marking the largest annual change in the region since the 2008 recession.
Imani said that “the ability to counteract the weakness of national currencies and corruption” and increase financial inclusion make peer-to-peer cryptocurrency transactions a no-brainer for many Africans.
From Lagos to Nairobi, and from Accra to Cape Town, Africa is emerging as a powerhouse of technological innovation.
Look at this space! #Blockchain Africa pic.twitter.com/LYGZCQ0u9Z
– near Kenya | NEAR now (NearKenya) June 19, 2023
Okoye added Kevin Chipuyim, founder and CEO of coded education platform GIDA, based in Nigeria.
“Africans are used to bad governments with no accountability and transparency, but here, the blockchain shines through its transparent nature here and makes everyone trust the system,” he said.
Related: Africa: Next Place for Bitcoin, Crypto Adoption and Venture Capital?
In April, Block – an American digital payments company led by Jack Dorsey – partners Using the Yellow Card to facilitate cross-border payments in Africa based on Block’s infrastructure.
After increasing the number of cryptocurrency users by 2,500% in 2021, the region saw an 11-fold increase in venture capital funding in 2022.
Morris said that Nigerians’ adoption of cryptocurrency is “unparalleled” in the region — with one local publication reports In May, 47% of Nigerians own or transact cryptocurrency on a daily basis.
While Morris said Botswana has “the most legal and regulatory clarity,” the cryptocurrency is now reportedly illegal in Cameroon, Central African Republic, Gabon, Guyana, Lesotho, Libya and Zimbabwe, among others. according to Investopedia.
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