The Next Hub for Bitcoin, Crypto Adoption and Venture Capital?
The cryptocurrency space has no shortage of skeptics. While many people criticize the environmental impact of proof-of-work blockchains or the proliferation of fraud, one particular argument against crypto often stands out: Blockchain has no real use cases.
Every other week, Cointelegraph’s The agenda podcast breaks down these criticisms and explores the various ways blockchain and crypto can help ordinary people.
On this week’s episode of The agendahosts Jonathan DeYoung and Ray Salmond chat with Elisha Owusu Akyaw, Cointelegraph’s in-house social media specialist and host of Hasting it out podcast, to break down how Africans are using crypto to strengthen financial inclusion and potentially turn countries into hubs for tech innovation.
How crypto is helping everyday Africans
According to Akyaw, crypto offers a more convenient and affordable way to send money both regionally and around the world. “Western Union, MoneyGram and all these money transaction companies or skins have been making millions off Africa for so long” by charging high fees, Akyaw said, while the costs required to send money via crypto are significantly lower.
Bitcoin (BTC) also offers a better store of value for most Africans than local fiat currencies, Akyaw argued. Speaking about his own experience living in Ghana, he said that “you can buy Bitcoin and keep it for a year or six months. It’s a better hedge against inflation than keeping the Ghana cedi.”
Finally, the crypto industry is opening up new opportunities on the continent. “At every point of development, Africa has been left behind,” Akyaw said. However, the global nature of the industry and the fact that it is still in its early stages of development provides a unique opportunity to participate and benefit from its growth.
“This is one of the first times where there’s a big shift and Africans can contribute. Africans can directly benefit from the shift that’s happening without having to go through an intermediary, which is usually the state. And I think that’s a wonderful thing.”
The next Silicon Valley?
When asked what it would take for countries in Africa to become “magnets for crypto builders or a new kind of Silicon Valley”, Akyaw pointed to two factors that need to be improved for developers, startups and fintech companies to want to make the continent their home : regulation and infrastructure.
The majority of African countries lack proper regulation, according to Akyaw, while condemning the use of crypto. This means that businesses are often unable to obtain licenses to set up shop, and citizens are discouraged from interacting with Web3 protocols and firms:
“You can’t get a license. You cannot work with a bank in the country. You can’t do many things. So it makes no sense for you to come in.”
The other thing that needs to change, Akyaw said, is that electrical grids need to be more stable and the internet needs to be more reliable. “If you want a lot of Big Tech companies to come in, they have to have big, 24/7 power. The Internet has to be amazing because a lot of what we do in the crypto space is virtual.”
To hear more from Akyaw’s conversation with The agenda – including his story, whether external funding has any downsides and the potential future of crypto in Africa in the near term – listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And don’t forget to check out Cointelegraph’s full lineup of other shows!
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