People in Africa stand to benefit from the implementation of blockchain technology. The growth of blockchain and bitcoin deals in African nations has been substantial over the last five years.
The infusion of blockchain technology can improve sectors such as healthcare, education, and media. Solutions like Avesta can increase financial sovereignty and accessibility for those who previously had few financial options.
Conditions in Africa are Conducive to Blockchain Innovation
The potential for innovation provided by blockchain tech can be tremendously empowering for African citizens. Few other areas of the world have a populace facing the perfect storm of political, technological, and financial conditions that are conducive to widespread blockchain adoption.
Brookings.edu cites a recent paper published by the International Finance Corporation (IFC) to make this point.
“High levels of mobile penetration and a largely unbanked population suggest vast potential for the adoption of blockchain-based solutions over traditional payment services in Africa, the report argues. Moreover, in countries with high currency risk and capital controls, blockchain-based solutions that circumvent these transaction challenges could be appealing to individuals, households, and businesses.”
Here at Avesta, we have been writing about this very same concept for some time.
In addition to the right demographic for blockchain adoption, regulators in many African nations have taken a “hands-off” approach to regulation in this industry, which further fuels innovation.
In many African countries, particularly South Africa, Ghana and Kenya, a number of blockchain-based financial services using cryptocurrency for global payments and remittance have already taken root and continue to gain ground, including
- BitPesa (Kenya)
- BTCGhana (Ghana)
- Luno and Ice3X (South Africa)
These kinds of startups have already begun to bring financial sovereignty to African citizens via blockchain innovation. They are part of a growing trend of adoption seen in Africa.
— Blockchain Africa (@BlockchainZA) August 17, 2018
Increasing Adoption of Cryptocurrency Among Africans
From 2013 to 2016, Africa’s participation in blockchain and Bitcoin deals has soared. Africa’s role in the blockchain economy was negligible in 2013. But in 2016, Africa’s role had risen to 4.5% of the total. This metric shows how dramatic the trend of blockchain innovation has become on the African continent.
We anticipate this number to continue to rise, especially as user-friendly point-of-sale solutions like Avesta come into play and facilitate even more widespread adoption.
Blockchain Innovation Can Solve Pressing Problems
In conclusion, blockchain innovation promises to improve the quality of many services for citizens of African nations. While most people associate blockchain with cryptocurrency and financial transactions, many other applications for the technology also exist.
The almost infinite potential for the use of blockchain tech to create more efficient, incorruptible, and decentralized solutions is what makes blockchain innovation exciting and revolutionary. As Brookings.edu puts it,
“…although not the ‘one size fits all solution to solve everything’, blockchain is imbuing a certain means and technical know-how into civil society in a way that has not existed previously in Africa. Education, health and media are just some of the components being lifted by blockchain technologies to empower civil society as a whole.”