The role of Cryptocurrency in the financial sector is increasing with time. The investors are patting on Cryptocurrency when it comes to transactions.
According to a study, Cryptocurrency markets are expected to reach $4.94 by 2030 with a CAGR of 12.8%. In order to attain the targets, new vistas and territories need to be explored.
And when it comes to expansion, Africa is another name for the promise. If you are a Cryptocurrency enthusiast, you can be a bitcoin buyer.
In this article, we will discuss why Web 3 needs Africa. So let’s begin the discussion.
Table of Contents
Why Does Web 3 Need Africa?
There are reasons in abundance why Web 3 needs Africa as the destination of tomorrow. Let’s supply some figures.
According to African Report, the sub-Saharan Crypto players achieved a massive $80 billion in Cryptocurrency holdings- and this is more than the total of USA Crypto users.
Countries like Morocco, with GDP ranking well outside the top 50 nations, have one of the highest Crypto holding populations.
It is recorded that the Crypto payment in Africa from the year 2020 to 2021 missiled to a whopping 1200% increase.
Now there is a basic reason why Crypto gets an open grazing ground in Africa. Africa is trying to work on core sectors like basic infrastructure and finances. Now, these sectors require a massive amount of currency mobility.
The problem is that the Financial transaction and settlement infrastructure in Africa is weak. If you are sending money in less time via mobile phones, Africa is lagging behind others.
This poor infrastructure enervates the opportunity for the eCommerce industry to run in Africa. So there are impediments one can not deny.
Another area is remittance, where poor financial infrastructure handicaps fast transfers. So while there are open development opportunities, efficient money transfer systems need to be there.
Advantages Of Cryptocurrency
Now a question might crop up here:
- Why is the hue and cry of Cryptocurrency?
- Why Africa needs to embrace Cryptocurrency?
- What is the urgency?
There are numerous advantages that Cryptocurrency offers compared to the traditional mode of Digital Payments. Embracing Cryptocurrency Africa will have:
- East Transactions.
- Incredible Security (Blockchain network).
- Low fees and brief settlement times.
- Exponential industry growth.
- Decentralized Transactions.
- Portfolio diversifications.
- Seamless cross-border payments.
- Inclusive financial system.
- 24/7 markets.
Where else are you getting this kind of facility?
Internet Penetration: Is The Ground Ready For Crypto Revolution?
In order to analyze the role of Africa in the Cryptocurrency industry, we need to have a clear idea regarding internet penetration.
Internet Penetration in Africa is lean and impoverished compared to the rest of the world. Percentile-wise, the expanse of Cryptocurrency in Africa is a mere 39% against the global average of 59%.
Among the African countries, only Kenya and Libya have a healthy average of 87.2 percent and 74.2 percent. Other developed nations like Egypt only have 48% of Internet penetration (Internetworldstats.com). So this needs to be improved upon fast.
Start Of Crypto Renaissance In Africa
Cryptocurrency has been around the continent for around a decade, and now everybody expects heydays for Cryptocurrency in Africa. Africa is pregnant with potential.
The Fintech sector is growing fast in countries like Nigeria, Kenya, and South Africa.
In the Global Crypto Adoption Index, Togo, Tanzania, South Africa, and Nigeria proudly show its presence in the Top 20 list of Cryptocurrency Adoption.
In another development, Ejara, a company in Cameroon, raised around $2 million to offer investment services in Francophonie.
This unleashes massive opportunities for economic growth. Frency-based Africans can now invest 5000 CFA (~$9) in strengthening the domestic market.
It’s great news, to say the least. So Africa is really responding to the ‘Hi’ of Cryptocurrency.
Innovations like Bitpesa turned a catalyst in decreasing the cost of cross border currency transfer. And that’s touted to be the possible answer to the issue of remittance.
It is understood and inferred from the following scenario that Cryptocurrency has great potential so far as Africa is concerned.
No matter why it is legitimate to say that Web 3 needs Africa and not the other way round.
The Global Crypto fraternity could well say:
This time for Africa!