Blockchain technology solves real-world problems in Africa

Blockchain technology is solving real-world challenges in Africa, such as hyperinflation and corruption, in contrast to many Western investors who see crypto as an opportunity to speculate on the next big trend.

Chris Maurice, founder and CEO of Yellow Card, the largest cryptocurrency exchange in Africa, claimed that cryptocurrencies are addressing real issues related to banking and foreign exchange on the continent, unlike how it can be perceived as a casino in the West. . The most common use cases in Africa include international payments, sending money to friends and family, and inflation protection.

Kevin Imani, founder and CEO of Sankore 2.0, a Near Protocol affiliate, noted that blockchain-based payments can act as a human rights technology by providing protection for people in underdeveloped nations. In developing countries, where hyperinflationary pressures and corruption have left citizens with few options, cryptocurrencies offer an escape route by providing greater financial inclusion and control over their money.

According to Statistica, inflation rates in sub-Saharan Africa reached an estimated 14.5 % in 2022, the region’s highest annual change since the 2008 recession. This backdrop makes peer-to-peer crypto transactions an obvious choice for many Africans. , as they can counter weak national currencies and corruption, as well as increase financial inclusion.

Africans see the cryptocurrency sector as an opportunity to be part of something big and ride a new wave of development, similar to the Internet revolution in the 2000s. The inherent transparency of blockchain technology inspires confidence in a continent where Bad governance and a lack of accountability are common, according to Okoye Kevin Chibuoyim, founder and CEO of Nigeria-based cryptocurrency education platform GIDA.

In terms of adoption, Nigerians lead the region, with 47 % of them owning or transacting daily with cryptocurrencies, according to a local report from May. Although Botswana is considered the country with the most legal and regulatory clarity regarding cryptocurrencies, it is reported that cryptocurrencies are illegal in Cameroon, Gabon, Guyana, Lesotho, Libya, the Central African Republic and Zimbabwe, according to Investopedia.

The growing popularity of cryptocurrencies in Africa is reflected in the increase in the number of users by 2,500 % in 2021, as well as a significant increase in VC funding in the region, which experienced an 11-fold explosion in 2022.

K. Tovar

Source: Cointelegraph

(Reference image source: Olha Kucha, Unsplash)

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