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

Crypto in Africa Used to Address Real-World Issues

Many investors in the West may be using crypto to speculate on the next trend, but blockchain technology is actually being utilized to address real-world issues in Africa, such as hyperinflation and corruption, executives have informed Cointelegraph.

Chris Maurice, founder and CEO of Yellow Card – Africa’s largest cryptocurrency exchange – told Cointelegraph that crypto in Africa is advancing rapidly since it allows many Africans to break away from the deficiencies of the traditional financial system and transact more freely.

Maurice stated that the most frequent applications in Africa are international payments, sending money to acquaintances and relatives, and “safeguarding funds against inflation.”

He stated that, compared to other parts of the world, Africa is closest to fulfilling the original purpose of cryptocurrency.

Kevin Imani, the originator and head of Sankore 2.0 – a subsidiary of layer-1 Near Protocol – holds the opinion that blockchain-based payments can be utilized as a human rights technology.

He further stated that cryptocurrencies provide a lifeline to people who have been excluded from traditional financial systems, giving them more control over their finances.

Statistics from Statistica show that Sub-Saharan Africa experienced an inflation rate of 14.5% in 2022, the greatest yearly shift since the 2008 economic downturn.

Imani declared that peer-to-peer crypto transactions are a no-brainer for many Africans due to their capacity to counteract weak national currencies and corruption, as well as to enhance financial inclusion.

Okoye Kevin Chibuoyim, the founder and CEO of crypto education platform GIDA in Nigeria, believes that Crypto provides Africa with a chance to be part of something amazing, unlike the internet revolution of the 2000s when many Africans didn’t have the same level of access.

“Given the lack of accountability and transparency typically associated with African governments, the use of blockchain technology to create a more trustworthy system is welcomed,” he commented.

Africa Becoming a Hub for Bitcoin and Crypto Adoption

Is Africa becoming a hub for Bitcoin, crypto adoption, and venture capital?

In April, Jack Dorsey’s Block – a U.S. digital payments firm – collaborated with Yellow Card to enable cross-border payments in Africa using Block’s platform.

Following a 2,500% surge in the number of cryptocurrency users in 2021, the region saw an elevenfold increase in venture capital funding in 2022.

Maurice declared that Nigerians have embraced cryptocurrency “more than any other nation” in the area – with a local newspaper writing in May that 47% of Nigerians own or use crypto on a daily basis.

Maurice commented that Botswana has the “most legal and regulatory clarity” when it comes to cryptocurrency, yet Investopedia reports that it is now illegal in Cameroon, Central African Republic, Gabon, Guyana, Lesotho, Libya and Zimbabwe.

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