In recent years, Africa, a continent packed with potential, has experienced an increase in crypto adoption. Thanks to cryptocurrency and blockchain technology, real-world applications are gradually emerging, driving innovation and providing opportunities that are transforming the lives of millions of people. But beyond the hype, what are some top crypto use cases in Africa and how is it impacting the life of the average African? Let’s explore the everyday use cases that are leading the charge in improving the adoption of cryptocurrencies in Africa.
Why is crypto gaining traction in Africa?
Despite the bans and limitations that the government has placed on cryptocurrencies in some countries in Africa, cryptocurrencies as a whole are still gaining a lot of attention. The increase in crypto adoption in Africa against all odds can be attributed to different factors. Some of the most notable factors are inflation, economic instability, and the need for low-cost cross-border transactions.
Essentially, cryptocurrencies and their underlying technology offer a feasible solution to these problems, providing a decentralized alternative to conventional financial systems. Africa’s rapid adoption of cryptocurrencies indicates that its indigenes are not just chasing wealth but also actively using cryptocurrency and its underlying technology to solve their immediate problems.
Top 5 crypto use cases in Africa
Without a doubt, cryptocurrencies have become invaluable to the average African and this is evident in how it is used daily. Listed below are some top crypto use cases in Africa:
1. Saving against inflation and currency devaluation
It is no news that a considerable number of African countries are currently facing currency devaluation. Fortunately, cryptocurrencies can hedge against this devaluation at an alarming rate. Basically, stablecoins have become a big refuge for Africans hoping to reduce the impact of inflation and preserve their wealth for the future.
For example, the Nigerian Naira is currently experiencing significant devaluation, causing many individuals to turn to stablecoins as a safety net. Today, it is not uncommon to see Nigerians buy USDT on Bitmama to preserve the value of their savings. This way, their hard-earned money will be shielded from the erratic devaluation of the local currency.
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2. Payments for products and Services – virtual crypto cards
In the last few years, many businesses in urban areas across Africa have begun accepting cryptocurrencies as payment. Surprisingly, this trend is not only within tech-savvy businesses but also for traditional vendors, providing people with more payment options. With people now being able to use crypto to pay for services directly, more people are now willing to explore what the crypto space has to offer.
Virtual crypto cards today are powered by stablecoins like USDT and USDT and can be used to make dollar payments on online platforms. With crypto, individuals and businesses can navigate FX payment problems faced by most African countries when they want to purchase goods and ship from abroad.
3. Cheap and seamless cross-border transactions
Basically, cryptocurrencies provide Africans with a fast and cost-effective alternative to traditional remittance services, usually with slow processing times and very high fees. Numerous blockchain-powered platforms now allow for near-instantaneous and cheap cross-border transactions. This saves users substantial amounts of money compared to using traditional methods for international transactions.
4. Trading and investment
Most Africans have heard of crypto trading at some point, as it has become a prevalent source of income, especially for youths. African crypto enthusiasts trade and invest in cryptocurrencies with the hopes of earning a profit. Essentially, these crypto traders and investors capitalize on the volatile prices of cryptocurrencies to earn profits in the market. The success stories of past crypto traders and investors have encouraged more people to enter and explore the crypto space, consequently increasing crypto adoption.
5. Financial inclusion for the unbanked and underbanked population
Millions of people in Africa, especially in remote villages, lack access to conventional financial services. Unfortunately, this has trapped this population in a cycle of cash-based transactions and restricted economic opportunities. With its decentralized nature and capacity to facilitate peer-to-peer transactions, cryptocurrency offers a solution to this issue.
There are mobile money solutions that leverage blockchain to facilitate secure, instant, and affordable money transfers across borders. So, there is a rise in the adoption of crypto by the underbanked population in Africa to bypass the limitations and restrictions of traditional banking systems.
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Even though cryptocurrency is not the answer to every financial problem, it is impossible to deny the fact that it offers exciting opportunities for Africa’s development. By dealing with existing challenges and harnessing their potential for more, cryptocurrency and blockchain technology as a whole can empower individuals, unlock financial inclusion, and create a better future for Africa.
Bitmama offers a secure marketplace for crypto enthusiasts. Perform activities like crypto trading and creating virtual dollar cards for online payment. Get started today by downloading the Bitmama app.
