Regardless of price, Bitcoin is a lifeline for Eritrean refugees
It is a common misconception that new bitcoin users are usually western traders concerned with the bitcoin price. In contrast, the bitcoin adoption rate in Africa has grown faster than any other region globally in recent years. Bitcoin is becoming particularly popular in countries such as Nigeria and Kenya, while African refugees are also turning to bitcoin when other cross-border tools fall short. This is the case with refugees fleeing Eritrea, a nation in East Africa that is often referred to as Africa’s North Korea. Eritrean journalist and human rights activist Meron Estefanos told me that bitcoin has become a useful tool in her efforts to rescue refugees who are falling on hard times while fleeing Eritrea.
Every month, more than 5,000 Eritreans flee the country to Sudan, Ethiopia or the path to reach Europe through the Sahara desert, where the unluckiest die en route or are sold into slavery in Libya. Tens of thousands of refugees are stuck in the conflict and are often attacked by different factions such as the Ethiopian army, the Eritrean army and Tigrayan forces.
Estefanos, who is also the founder of the nonprofit International Commission on Eritrean Refugees, told me that several years ago, refugees kidnapped by human traffickers began contacting her for help paying ransoms. This led her to establish the diaspora-based non-profit organization dedicated to rescuing Eritrean refugees at risk of human traffickers. However, the Eritrean government’s surveillance system makes these rescue efforts even more difficult.
“As an activist, I interact with a variety of individuals from around the world, including sources, researchers and the people I help. Receiving and sending money can put their lives at risk, as transactions through both the banking system and traditional money transfer services are recorded,” said Estefanos. “The recipient may be accused of being a foreign mercenary and sentenced to prison.”
Bitcoin was a golden solution for Estefanos, who saw it as a way to convey financial resources to refugees, especially those who were unable to use government-issued identification to receive money through traditional remittance systems. Through her bitcoin-savvy organization, she is now able to help families send funds to save their loved ones without subjecting them to further repression from the Eritrean government.
While bitcoin is traceable, as every transaction on the blockchain is permanently and transparently recorded, sending bitcoin without a third-party crypto exchange provides an additional layer of privacy. African users rely on a variety of platforms that do not collect and store users’ information, providing a faster solution to sending funds using the Lightning Network than would ever be possible with a bank. That’s why the International Commission for Eritrean Refugees is now providing bitcoin education to refugee communities across East Africa. Estefanos told me that the next step is to develop bitcoin mining in rural areas powered by renewable energy. She said she hopes her nonprofit will be able to increase its impact and support more refugees in need.
This refugee rescue operation may still be small, serving dozens of people instead of thousands, it’s not the only non-profit spreading bitcoin education on the continent. Operations such as Bitcoin DADA in Kenya and Bitcoin Mountains in Cameroon both of which started and scaled their operations in 2022, shows that the explosive growth of bitcoin adoption in Africa will be driven by grassroots initiatives, regardless of global bear market blowout.
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