Africa is one of the most underrated crypto hotspots of the world. Alongside being one of the most beautiful continents it is also home to millions of crypto enthusiasts. While a huge part of its population is unbanked it has seen a rise in popularity of blockchain technology and especially cryptocurrencies. The people have been adopting cryptocurrencies to bypass the problems they face due to a failing economy.
Inflation is one of the primary reasons why people are looking more into cryptocurrencies with a flawed banking system being the other adversary to financial freedom. Africa is home to a number of technology start-ups and financial services that are disrupting the face of their industries with blockchain.
The people are amidst a technological cold war with regulators who have been cracking down on cryptocurrencies. Last week, First National Bank (FNB), one of the largest banks in Africa, decided to cut off their ties with cryptocurrencies completely. The bank announced that it will be closing down bank accounts that have any link with cryptocurrencies. The reason cited for this move according to FNB was:
“Appropriate regulatory frameworks are not yet in place.”
While the governments are still undecided on where cryptocurrencies fit in the African economy, the people are showing more interest in cryptocurrencies. Earlier it was reported that Nigeria and South Africa have been the leading nation globally, with the highest number of bitcoin-based searches. Many big names like the popular singer Akon are joining this financial revolution. One of those crypto enthusiasts aiding the African crypto industry is Twitter CEO, Jack Dorsey.
Dorsey has been preaching crypto in Africa while he was on a tour of the continent. He has already visited Nigeria and Ghana and attended some crypt meetups there. While attending one such event, Jack explained that he was in Africa “to understand the challenges of starting a company here and figure out a way I can support.”
Being a bitcoin advocate, he has publicly endorsed the Lightning Network as a payment solution that will allow Bitcoin users to instantly send funds with close to zero fees. Now he is convinced that Africa will a play a huge role in defining the future of Bitcoin. This comes right after his African tour where he met with tech entrepreneurs and Bitcoin believers, and now Dorsey has pledged to live in Africa for the next 3 – 6 months.
The Twitter CEO could very well play a key role in Africa’s crypto revolution if he is committed to making this work. Alongside his payments company Square, where he had already enabled Bitcoin payments; he could further help boost crypto adoption in Africa.
Apart from being a store of wealth and a payments system, Crypto is also being used to benefit the African community. In fact, the Red Cross society of Norway, Denmark, and Kenya has launched a blockchain-backed local currency to help fight the difficulties of not having enough hard cash and relying on the barter system.
The African crypto community is an untouched ground with a huge potential, and with the likes of these tech companies and crypto advocates it sure is on the right path to being a successful blockchain and crypto economy.