Using Crypto to Connect Africa and Set People Free

Whilst the rest of the world dances nervously with a potential rival to traditional banking and the threat of uncontrollable digital currencies, Africa is set to benefit enormously from a crypto boom.

Many are saying that Africa is the new frontier for cryptocurrencies and indeed, across the continent people may soon be clamouring to thank God for blockchain.

Paxful, a Bitcoin exchange, revealed that it had experienced a 130% increase in trading volume in 2018 and they report that the majority of the growth came out of Africa.

For the keen observer this is no surprise: cryptos hold numerous opportunities to offer to African citizens.

An example of this?

Well, for overseas workers sending money back home to Africa crypto can actually cut costs by 90%. This is stunning. Traditional remittance firms like Western Union make a lot of money from migrant workers.

They are quickly becoming less important and soon may be defunct.

Crypto evangelists talk passionately about how digital currencies can cut through state borders and encourage grass-roots trade between businesses in disconnected countries. What crypto can do, they say, is create a regional market which exists outside of political instability and corruption.

Blockchain is after all sold on the basis of its resilience to tampering. Cryptocurrencies are seen as the perfect tool for resisting financial misbehaviour in government.

And Africa has been remarkably fast to adopt new technologies recently.

Kenya astonishingly surpassed Nigeria to become the country with the highest rate of mobile phone usage for internet banking earlier this year, with over 80% of the nation using a mobile to access their finances.

This shows the demand is undeniably there - as is the political attitude - for the speedy adoption of new financial options.

Cryptocurrencies would work wonders for increasing financial inclusion, reckons the World Bank in their 2017 report.

Data shows that millions remain unbanked in Africa, many citing expensive fees and the difficulty in opening an account as barriers to entry.

What cryptocurrencies offer is the ability cut out banks entirely and connect individuals with their money directly, in the process bypassing unstable local currencies.

The upshot of all this? It could help to improve the financial independence of women in some places, or empower those living in remote areas many miles from their closest bank branch.

Africa needs cryptocurrency and it seems, with more smartphone users across the continent than ever, the people are becoming ever-more ready for such a blockchain-based solution.