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13 December 2021: For much of modern history, the continent of Africa has lagged behind the rest of the world in terms of social and economical development, status, and legitimacy. This is largely due to the role in which colonization played on the continent with many western nations essentially purging Africa for decades.
With the rise of cryptocurrencies, Web3, and blockchain technology, there is an opportunity available for Africa to truly develop into its own haven of human progress - free from the influence of other parts of the world. It has been proposed that a common cryptocurrency for all of Africa could be greatly beneficial to sustainable growth.
In short, a common cryptocurrency could:
- Provide financial independence to residents of Africa
- Substantially boost trade both within and outside of the continent
- Help Africa establish legitimacy within the global economy
Current Progress of Crypto, Blockchain Adoption in Africa
To date, there has already been volumious activity regarding the establishment of cryptocurrencies in Africa. Notably, both Bitcoin and Cardano have either established ground in Africa or are directly used. A large amount of cryptocurrency traffic actually flows through Africa every day, though a very small amount of that capital is actually benefitting the continent because many have either not had the opportunity to use it or simply don't know enough about the tech to trust it outright.
This hasn't stopped the rise of adoption in Africa however. Three distinct areas of progress are:
Cardano (ADA)
A considerable amount of time, effort, and planning has been issued by the smart contract platform Cardano in establishing formal partnerships within Africa. Cardano has essentially come forth and outright stated that it wishes to "bank Africa" and become the continent's perennial blockchain.
For detailed information, visit Cardano's website here: Cardano Africa
The country of Nigeria in Africa has become one of the biggest Bitcoin-using nations in the entire world behind the United States. This is all in spite of officials in the country disapproving of cryptocurrencies. Many within Nigeria began using Bitcoin purely out of convenience when COVID-19 shut down much of the country. They have been using Bitcoin ever since.
South Africa
The most recent develop to come out of Africa is the country of South Africa's intent to at least propose regulation of cryptocurrencies sometime in early 2022. Of course, much of the intent here is to protect unknowing investors from financial damages due. Nevertheless, the country sees cryptocurrencies as relevant enough to bring about a response. With appropriate protections in place for South African investors, it may even lead to further interest in cryptocurrencies, blockchain, and Web3.
Challenges
Obviously, it is easy to talk about the potential benefits that cryptocurrencies and blockchain technology could have in Africa. There are some substantial hurdles to jump over before Africa can establish itself as a blockchain-powered economic giant.
There are two significant challenges:
- Infrastructure
- Education
To truly create a highly capable, resilient blockchain-powered economy in Africa, its going to take a massive investment into developing the necessary infrastructure. This includes building out internet infrastructure, providing access to locals, and essentially modernizing a continent.
The other side to that coin is simply education. Many will have absolutely zero clue how to operate computers let alone navigate the highly technical world of cryptocurrencies and blockchain. It will take a large effort on the part of willing blockchain networks and their communities to bring Africa up to speed.
The reward of doing so however is quite extraordinary. It could provide financial freedom to an entire continent full of people.
There is a long way to go before Africa can become what many are dreaming it could be - a legitimate, social & economic player in a highly competitive global network. The desire is certainly there for both blockchain networks and the people of Africa - just as those residing in Nigeria how prominent Bitcoin has been for their livelihoods throughout the pandemic.
Nevertheless, there is a lot more work to do in Africa. It is just going to take the wit, ambition, and courage to see it through.
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