This article has been penned by Nicolas Goldstein, Co-founder Talenteum Africa
Undoubtedly, cryptocurrency and Blockchain is making its way faster in Africa than elsewhere in the world. The numbers are there to prove it: there was an increase of around 1200% in its success rate in less than a year, between July 2020 and June 2021. This is the equivalent of $105.6 billion in cryptocurrency on the continent. So much so that Africa has developed Afrocoin, its own digital currency.
A tangible answer to several problems
The use of cryptocurrency is gaining unexpected momentum in Africa, stimulating the growth of tangible assets while having a positive impact on many topics that were until now problematic:
• Significant infrastructural gaps, hindering access to financial services;
• The lack of reliable and affordable internet, especially outside major cities;
• A varying level of financial skills.
Today, with cheaper virtual financial flows, we are witnessing the gradual disappearance of cash assets on the continent, in favour of credit cards, gateways and other electronic payment methods. “No region uses P2P platforms at such a high rate as African cryptocurrency users, as they account for 1.2% of all African transaction volumes and 2.6% of all Bitcoin volumes in particular”, states a recent report issued by Chainalysis.
The company specialising in digital analysis adds that these same platforms allow consumers to bypass strict financial regulations that limit money transfers from banks to cryptocurrency companies. Now, in Nigeria it is not uncommon to see young businessmen making significant transactions on WhatsApp or Telegram!
The advent of cryptocurrency in Africa in numbers
While everyone agreed that North America outperformed all nations when it comes to cryptocurrency, the reality is much different. Currently, Kenya, Nigeria, South Africa and Tanzania lead the list as the most active markets, ranking in the top 20 globally for the adoption of this virtual money.
Additionally, UsefulTulips, a company specialising in the analysis of this market, made a balance sheet clearly demonstrating that Africa has surpassed the nations considered to be the most powerful when it comes to cryptocurrency:
• In the last 12 months, the acquisition of cryptocurrencies has increased by 67 million dollars (19%), leaving behind North America with its 79 million acquired in total.
• Users in sub-Saharan Africa are leading the way with cryptocurrency acquisitions equivalent to $20.5 million for the period of September 6 to 12 alone, compared to 20 million in North America.
Is Africa paving the way to welcome Afrocoin?
Created in 2018 by the NGO “AFRO Foundation”, Afrocoin or Afro, aims to become the first crypto-active of the continent!
They recently signed a MOU with Talenteum Africa to reach their 10K talents on their platform to receive on top of their salary Afro Coin and be paid or reward in Coin.
The central banks of Côte d’Ivoire, Cameroon, Burundi, Tanzania and Benin are interested in this developing bitcoin from near or far. Governments are groping the ground, but many of them are waiting for an official legal and financial framework around cryptocurrency, in order to protect potential users.
In any case, Afrocoin is gradually making its way, with figures that predicting a long-term development: 10,000 afros transactions and a transition from 1,160 monthly uses of the Esim card at its launch to 3,000 uses currently.
Cryptocurrency modernises Africa
In the collective imagination, Africa is a constantly developing continent, a set of nations constantly in search of a helping hand. In fact, the way it is now juggling with the cryptocurrency proves to us that it has all the assets to surpass the so-called rich Western nations.
With its very young population, thirsty for progress and always inclined to participate in its economy, Africa is a typical example of countries able to work silently, but very efficiently and quickly!
