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The Rise of Bitcoin in Africa

Samantha Mitchell

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Currently, a large proportion of the two billion unbanked individuals worldwide reside in Sub-Saharan Africa and Southeast Asia. Due to this occurrence, various Fintech innovations have come up in these areas trying to offer financial services and solutions to the people in an attempt of bringing them into global commerce networks.

Several start-ups have made significant strides in the African market with the recent rise of different Fintech solutions. Paxful is among these successful start-ups. It is a reliable and undisputed peer-to-peer (P2P) Bitcoin Cryptocurency market platform that has reliable operations and presence all over the world.

Increased Bitcoin Adoption in Africa

The Cryptocurrency market does not resemble most of the traditional facets of the global economy. The Bitcoin market is majorly dominated Western World news and information originating from Asian countries like South Korea, Japan, and China. It is rare for the Cryptocurrency market to be affected by news from developing regions like Africa when considering grand scheme of transactions.

Nonetheless, the African Bitcoin market is expanding at a tremendous rate according to the latest economic figures released by Paxful. According to reports released on March 15, the Bitcoin trading volumes in the African continent currently stand at approximately $40 million USD on a monthly basis. Nigeria and Ghana rank second and third respectively behind the US in the Paxful trading market worldwide.

Besides being at the heart of the Bitcoin marketplace operations in Africa, Paxful Company also runs and manages several philanthropic and charitable activities. In 2017, they used their #builtwithbitcoin charity campaign to help build at least 100 schools in Africa.

Hyperinflation and Sustainable Savings Infrastructure Requirements

Cryptocurrencies are considered as a means of making anonymous payments or held as volatile speculative investments in America and Europe. On the other hand, cryptos are seen as a way of safeguarding wealth in Africa. Many African countries have suffered in the past due to the volatility of their currencies that make them undesirable for wealth storage.

The latest trend shows that upwardly mobile Africans convert most of their financial assets to shield themselves from the negative effects of severe currency devaluations. Ray Youssef, the Paxful co-founder, reiterated this point using Nigeria as an example. According to his statement, the Naira has depreciated by at least 90% in the past two years when compared to the US Dollar.

On the contrary, the price of Bitcoin shot up by at least 1000% in 2017 alone. While developed nations consider the cryptos quite volatile, the traditional African currencies are more volatile which makes individuals in Africa to readily accept cryptos as a means of savings.

Targeting the Under-banked and Unbanked Populace

A large proportion of the African population is either unbanked or under-banked, which adds up to the currency devaluations in the continent. According to Ray Youssef’s statement of March 15, the unbanked people cannot participate in commerce and trade since their governments do not provide the fundamental financial infrastructures.

Youssef assured the unwavering commitment of his global operational Pax Company to building a massive P2P financial framework that can have the capabilities to launch an African-initiated global economic revolution.

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