Africa is a continent with many challenges. The continent is largely underdeveloped and unbanked. According to data, around 57% of Africans do not hold any form of bank account. Cryptocurrencies can provide much needed access to financial services for people who may not have access to traditional finance institutions like banks.
The importance of crypto in Africa
Cryptocurrencies are digital assets that use blockchain technology to record transactions on a distributed network. Unlike traditional fiat currencies, cryptocurrencies are not issued or controlled by governments or banks. This makes crypto attractive to people who do not have access to these institutions.
Cryptocurrencies can provide a secure and efficient means of storing and transferring value. The widespread adoption of crypto in Africa could provide much-needed financial inclusion and help to stimulate economic growth.
How crypto can help bank the unbanked in Africa
In Africa, financial exclusion is a major problem. A vast majority of the African population rely on informal financial services, such as money lenders and local savings clubs. These services can be expensive and risky, and they often exclude the poorest members of society.
Cryptocurrencies have the potential to help bank the unbanked in Africa by providing affordable access to financial services. Below are some of the ways crypto can help bank the unbanked African population:
- Cryptocurrencies can help to promote financial inclusion in Africa by providing access to financial services to those who do not have access to traditional banking systems.
- Cryptocurrencies can facilitate cross-border transactions, making it easier for individuals and businesses to trade with each other, regardless of their location.
- Cryptocurrencies can help to reduce the cost of remittances, making it significantly cheaper for people to send money back to their families and communities in Africa.
- Cryptocurrencies can provide a means of fundraising for entrepreneurs and small businesses in Africa, allowing them to access capital from a global pool of investors.
- Cryptocurrencies can provide a hedge against inflation to help protect individuals from currency devaluation, this is a common problem in many African countries.
Crypto adoption in Africa 2022
According to data from Chainalysis, Africa processed $105.6 billion worth of cryptocurrency between July 2021 and June 2022, representing 16% growth over the year prior. African countries including Nigeria, Kenya and South Africa rank among the highest for crypto adoption in Africa. Small retail transfers under $1,000, make up 80% of all retail transactions, more than any other region. This figure suggests that retail transactions are driving the crypto market in Africa.
Crypto usage in Africa is driven by everyday necessity. Individuals in Africa are using cryptocurrencies for a variety of purposes, including buying and selling goods and services, conducting cross-border transactions, and storing and transferring value.
Africa needs cryptocurrencies to provide financial inclusion, stimulate economic growth, and provide a hedge against inflation. By adopting cryptocurrencies, Africa has the potential to leapfrog traditional financial systems and create a more financially inclusive future for its people.
Be Mobile Africa
At Be Mobile Africa, our mission is to bring 100 million people out of poverty through financial inclusion. We are working towards banking the unbanked population of Africa and the rest of the world by providing safe, reliable, secure and cost-effective access to financial services.
Through the Be Mobile Africa app, users can buy, sell, hold, and swap crypto currencies such as Bitcoin, Ethereum, USDC and USDT.
Click here to learn more and download the Be Mobile app.