Crypto offers Africans a ‘lifeline’ from inflation and corruption, say execs

While many investors in the West may be looking to cryptocurrencies to speculate about the next big trend, blockchain technology is actually tackling Africa’s “real world problems” such as hyperinflation and “corruption.” ,” executives told Cointelegraph.

Chris Maurice, founder and CEO of Yellowcard, Africa’s largest cryptocurrency exchange, told Cointelegraph that African cryptocurrencies are a threat to many Africans as a failure of their traditional financial system. “It’s growing at the speed of light,” he said, in an effort to escape from scourge and be able to trade more freely.

“Cryptocurrency solves real-world problems with banking and currency on the continent. It’s not the casino you sometimes feel in the West.”

The most common use cases in Africa, Maurice said, are international money transfers, sending money to friends and family, and “saving money for inflation.”

“African cryptocurrencies are closer to the original mission of the technology than any other part of the world,” he added.

Africa has more cryptocurrency users than North America and Europe.

Six of the top 20 cryptocurrency countries in the world are in Africa.

Africa is a virtual currency continent. https://t.co/NzodcOkMYn

— Chris Maurice ⚜️ (@chrismaurice) April 24, 2023

Kevin Imani, founder and CEO of Layer 1 Near Protocol affiliate Sankore 2.0, believes blockchain-based payments can serve as a human rights technology.

“It is important to recognize that human rights protections are provided for people in developing countries. In many developing countries, hyperinflationary pressures and corruption leave citizens with few options.”

“Cryptocurrencies provide a lifeline for these individuals, enhancing their financial inclusion and control over their money,” he added.

Inflation in sub-Saharan Africa will reach an estimated 14.5% in 2022, according to Statistica, marking the largest annual change in the region since the 2008 recession.

Imani said peer-to-peer cryptocurrency trading has become a no-brainer for many Africans because of its “ability to combat the depreciation and corruption of its own currency” and its ability to increase financial inclusion.

From Lagos to Nairobi, Accra to Cape Town, Africa is emerging as a powerhouse of technology innovation.

Check out this space! #Blockchain in Africa pic.twitter.com/LYGZCQ0u9Z

— Near Kenya | NEAR is now (@NearKenya) June 19, 2023

“Personally, I think cryptocurrencies are the next life challenge for Africa and something great, as opposed to the internet revolution of the 2000s when most Africans were not as exposed to cryptocurrencies as they are today. We see this as a new opportunity to participate in ,” added founder Okoye Kevin Chibuoim. He is the CEO of GIDA, a crypto education platform based in Nigeria.

“Africans are used to bad governments with no accountability and no transparency, but here blockchain transparency comes into play and everyone will trust the system,” he said.

Related: Africa: Will it be the next hub for Bitcoin, cryptocurrency adoption and venture capital?

In April, US digital payments firm Block, led by Jack Dorsey, partnered We will use Yellow Card to facilitate cross-border payments in Africa based on Block’s infrastructure.

After a 2,500% increase in the number of cryptocurrency users in 2021, the region saw an 11-fold surge in venture capital funding in 2022.

Maurice said in a local publication that Nigerians have adopted cryptocurrencies “more than anyone else” in the region. report In May, it was announced that 47% of Nigerians own or trade cryptocurrencies on a regular basis.

Maurice said Botswana is “the clearest legally and regulatoryly,” but said cryptocurrencies are currently illegal in Cameroon, Central African Republic, Gabon, Guyana, Lesotho, Libya and Zimbabwe. It is reported. according to Go to Investpedia.

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