Crypto Adoption in Africa and the Stunning Growth of Blockchain Tech

A recent eye-opening report from KuCoin revealed that cryptocurrency users in Africa went up by 2500% in 2021.

Blockchain expert, Isiah Jackson has now taken the time to discuss the growing crypto adoption in Africa and the potential of digital assets on the continent’s economy.

The latest episode of the “Community Crypto” show on CoinDesk TV featured Paxful’s Deputy General Counsel, Jude Ogene.

The two discussed various topics, most notably crypto adoption, regulation, and Web3 Payments in Africa.

Crypto Adoption in Africa

Following the Central African Republic’s decision to adopt Bitcoin as legal tender, Ogene lauded the nation for making that huge decision. He described it as a step in the right direction, giving the potential of Bitcoin in Africa.

Ogene attributed the adoption of crypto to its use case for payment. He narrated that given the risks of inflation, more people are wary of saving their money in local currencies. They prefer to trade fiat for Bitcoin and other cryptocurrencies despite their volatility.

The Paxful Deputy General Counsel also shared that more people have taken to cryptocurrencies for remittance in the continent. In 2021, the continent had over $24 billion in crypto remittance via official channels. He estimated that remittances via unofficial channels could be significantly more.

Crypto in Nigeria

According to Business Insider Nigeria has the most crypto users per capita. Jude Ogene claimed that the adoption of digital assets in the country has been driven by users’ needs to find an inflation hedge. He also said that strict government regulation on foreign exchange has also played its part in the adoption of crypto. Mr. Ogene also claimed that other countries have begun to follow Nigeria’s lead, further driving crypto adoption in Africa as a whole.

Regulation of cryptocurrency

Asked if regulation was required for the cryptocurrency industry to properly succeed, Ogene said no. He argued that the government would be restricting the potential of crypto-assets with regulation. He further added that by regulating crypto, the government will be saddling the blockchain tech with the problems of the old money system. He, however, stated that any regulation that wouldn’t affect the smooth operation of cryptocurrencies and blockchain tech will be great for the industry.

eNaira

The Central Bank of Nigeria launched its digital currency, eNaira in November 2021. Downloads of the CBDC  app hit 756,000 within the first 5 months of its launch. Despite this, Ogene says that he doesn’t expect this CBDC to replace cryptocurrencies because it is plagued with the same problems as the Naira. He, however, claimed that it can complement crypto assets in the country if it has a strong use case.

The Future of Web3 payments

Rounding up, the future of crypto and Web3 payments was discussed. Ogene emphasized how Bitcoin’s lightning network would be very instrumental in eliminating most of the problems associated with Bitcoin such as high fees and slow transfer. He also said that he expects more people to be receptive to Bitcoin as a medium of payment, further driving crypto adoption in Africa.

Check out the full interview for more details about the discussion.

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